Busting 5 Myths of Affordable Housing
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Busting the 5 Myths of Affordable Housing
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the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
BUSTING THE
55 MYTHS
MYTHS
OF AFFORDABLE HOUSING
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
presented by
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
the Campaign for
Affordable Housing
Taking Action to Solve America’s Housing Crisis
the Campaign for
Affordable Housing
USDA Photo
Busting the 5 Myths of Affordable Housing
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Affordable Housing is needed by
individuals, families and
communities…
…and the truth is, it is good for the
neighborhoods in which it is built.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
In recent decades, home prices
and rental rates have increased
faster than income in most parts of
the country, increasing the need for
affordable housing.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Wages and the Cost of Housing in the United States
Homeownership Market 2005
Median Priced Home1 (Single- and Multi-Family): $225,000
Typical Annual Salaries (2005)
Annual Income Needed2
$71,354
$45,320
Elementary School
Teacher3
Police Officer3
$43,858
$36,531
Nurse (LPN)3
Retail Salesperson3
Janitor3
$22,588
$22,753
Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.
1Data
2The
the Campaign for
on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005.
Housing
annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and Affordable
insurance.
data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.
3Wage
Busting the 5 Myths of Affordable Housing
Wages and the Cost of Housing in the United States
Rental Market 2005
Fair Market Rent (2 Bedroom): $799/month
Typical Annual Salaries (2005)
Hourly Wage Needed2
$15.37
$14.40
Security Guard3
Child Care Worker3
$12.87
$11.34
Retail Salesperson3
Bank Teller3
Hair Dresser3
$10.76
$9.97
Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.
1Rental
2The
the Campaign for
data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units.
Affordable
Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing
Coalition. Housing
data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.
3Wage
Busting the 5 Myths of Affordable Housing
USDA Photo
As baby boomers
enter retirement, higher
demand for housing for
low-income seniors
is expected.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Medical advances
allow many older
and disabled
Americans to live in
their own homes for
longer periods.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Why isn’t more affordable housing being
built, especially when…
•
The need is growing,
•
Many state and local laws require it, and
•
Solutions exist?
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
ANSWER:
Because many community residents and
officials oppose the building of affordable
housing based on misunderstandings…
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
“…NIMBYism takes many forms. It can be as overt as a public
demonstration against a new housing development. It also
can be as insidious as the rigid application of zoning
regulations that perpetuate social and economic
segregation. Whatever its form, NIMBYism reflects the
perception among existing residents that additional housing
for low-to moderate-income people in their neighborhoods
will hurt their property values or quality of life by increasing
such problems as traffic congestion, crime and crowding of
local public facilities.”1
1Paycheck
to Paycheck: Wages and the Cost of Housing in Counties, published May 2004 by The
Center for Housing Policy, the research affiliate of the National Housing Conference.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
We can all help expand the supply
of safe, decent and affordable
housing by becoming...
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth Busters
Busters
Myth
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
The 5 most common myths about affordable
housing are:
1.
Affordable housing is ugly.
2.
Affordable housing produces more traffic.
3.
Affordable housing increases crime.
4.
Affordable housing overburdens schools and
infrastructure.
5.
Affordable housing lowers property values.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 1:
1: Affordable
Affordable housing
housing is
Myth
is ugly.
ugly.
THE TRUTH:
Affordable housing is designed to
fit the community character in
size and style. It is privately owned,
designed and developed.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 1: Affordable housing is ugly.
THE TRUTH:
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 1: Affordable housing is ugly.
THE TRUTH:
All over the country, the old public
housing projects of the mid-20th century
are being torn down and replaced by
attractive townhomes and apartments
through the HOPE IV program.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 1: Affordable housing is ugly.
THE TRUTH:
Before
Now
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 1: Affordable housing is ugly.
THE TRUTH:
Before
Now
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 1: Affordable housing is ugly.
THE TRUTH:
Before
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 1: Affordable housing is ugly.
THE TRUTH:
Now
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 2:
2: Affordable
Affordable housing
housing produces
produces more
Myth
more traffic.
traffic.
THE TRUTH:
Building affordable housing near jobs
supports the increased use of public
transportation, shortens commutes
and lessens congestion.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 2: Affordable housing produces more traffic.
THE TRUTH:
The National Personal Transportation
Survey found that low-income
households make 40% fewer
trips than other households.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 2: Affordable housing produces more traffic.
THE TRUTH:
“Studies indicate that the average resident in a compact neighborhood
will drive 20-30% less than residents of a neighborhood half as dense.”
“At densities of 8 units per acre and higher, neighborhoods begin to
support bus and rail transit….”
SOURCE: John Holtzclaw, www.sierraclub.org Local Government Commission
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth3:
3:Affordable
Affordablehousing
housing increases
increases crime.
Myth
crime.
THE TRUTH:
There is no correlation between safe, decent
and affordable housing and crime.
Studies show that what does cause crime
(and a host of other socio-economic ills)
is community disinvestment, overcrowding,
lack of jobs and community services.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 3: Affordable housing increases crime.
THE TRUTH:
Failure to build affordable housing leads to slum conditions of
overcrowding, absentee owners and deteriorating properties
with no alternatives available to low income families.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth
housing overburdens
infrastructure.
Myth 4:
4: Affordable
Affordable housing
overburdensschools
schoolsand
and
infrastructure.
THE TRUTH:
Studies show that traditional single-family
home neighborhoods have 2 to 3 times
the number of school-aged children
than those residing in apartments.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 4: Affordable housing overburdens schools and infrastructure.
THE TRUTH:
Higher density housing provides
economies of scale for utility
infrastructure in trunk lines
and treatment plants.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 4: Affordable housing overburdens schools and infrastructure.
THE TRUTH:
The U.S. Office of Technology Assessment found that it cost $10,000 [per unit]
more to provide infrastructure to a lower density suburban development than to
a more compact urban neighborhood. (OTA-EII-643, 1995)
Infrastructure costs per housing unit significantly decline as density increases: in
developments at 30 units per acre or greater to about $10,000 from $90,000 per
unit when built at 4 units per acre. (Urban Land Institute, Wieman, 1996)
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth5:
5:Affordable
Affordablehousing
housinglowers
lowers property
property values.
values.
Myth
THE TRUTH:
Academic studies and market
analysis all prove otherwise.
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 5: Affordable housing lowers property values.
THE TRUTH:
Just like many other studies, one from Wayne
State (Michigan) University tracked property
values before and after affordable housing
was built and found that affordable housing
often has an insignificant or positive effect
on property values in higher-valued
neighborhoods and improves values in
lower-valued neighborhoods.1
1See
www.culma.wayne.edu/pubs/galster/NAR_report.pdf
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
Myth 5: Affordable housing lowers property values.
THE TRUTH:
Further studies that support this truth can be found at:
www.habitat.org/how/propertyvalues.aspx
www.inhousing.org/house1.htm
www.mcplan.org/c_p/brochures/Aff_hous-std.pdf
www.nw.org/network/NewsRoom/
PressReleases/pdf/ExecutiveSummary.pdf
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
THE TRUTH:
the Campaign for
Affordable Housing
Busting the 5 Myths of Affordable Housing
To learn more about our programs,
publications and workshops, contact us at:
The Campaign for Affordable Housing
5900 Wilshire Boulevard, 26th Floor
Los Angeles, CA 90036
(323) 330-0540 phone
(323) 330-0541 fax
[email protected]
www.tcah.org
the Campaign for
Affordable Housing