The changing demography of multifamily rental housing

Abstract

The residents of multifamily rental housing are different from both homeowners and single‐family home renters, and these differences have implications for the housing market and for public policy. This article describes apartment residents today, discusses recent changes in their number and characteristics, projects their future growth and composition, and highlights business and policy implications of future changes.

For purposes of business and public policy, a segmentation of apartment residents into three submarkets is useful: the “affordable” market serving low‐ and moderate‐income households, some of which receive government housing assistance; the “lifestyle apartment market” serving higher‐income adult households; and the substantial “middle market.” The number of apartment renters is likely to grow moderately over time. The combination of multifamily structure type and rental tenure form offers unique opportunities not only for provision of affordable housing but also for revitalization of downtown areas and balanced “smart” growth in suburban areas.     

The Importance of Design in Affordable Housing: Lessons From Mutual Self-Help Housing in California

We focus on three nonprofit organizations developing mutual self-help housing and analyze their projects to examine how they are addressing cost increases. We find that instead of using simpler designs, they are developing more elaborate homes through intricate financing. We are critical of this evolution. First, we suggest that the original modest house design of mutual self-help housing allowed for more affordable housing through post-occupancy improvements and de facto incremental development. Second, after the modest design was replaced with a larger model, development costs increased. Despite financial innovations, including longer loan terms and secondary financing, participation by poor households dropped. Third, we urge a return to the modest housing idea. Fourth, we call for policymakers to better integrate design-based thinking in housing policy.     

Leaving Homelessness Behind: Housing Decisions Among Families Exiting Shelter

Because homelessness assistance programs are designed to help families, it is important for policymakers and practitioners to understand how families experiencing homelessness make housing decisions, particularly when they decide not to use available services. This study explores those decisions using in-depth qualitative interviews with 80 families recruited in shelters across four sites approximately six months after they were assigned to one of four conditions (permanent housing subsidies, project-based transitional housing, community-based rapid re-housing, or usual care). Familiar neighborhoods near children's schools, transportation, family and friends, and stability were important to families across conditions. Program restrictions on eligibility constrained family choices. Subsidized housing was the most desired intervention, and families leased up at higher rates than in other studies of poor families. Respondents were least comfortable in and most likely to leave transitional housing. Uncertainty associated with community-based rapid re-housing generated considerable anxiety. Across interventions, many families had to make unhappy compromises, often leading to further moves. Policy recommendations are offered.     

Is preserving small,low-end rental housing feasible?

This paper uses multiple national datasets to examine the financial, structural, neighborhood, and tenant characteristics of 1–4 unit low-end rental properties, which house 44 percent of all poor renters in US cities. We investigate the feasibility of two strategies to stabilize these properties: (1) outsourcing property management, and (2) transferring bundles of properties to large owners to generate economies of scale, cash reserves, and lower financing costs. We find that approximately five percent of small affordable rental properties are stable, 65 percent are salvageable but at risk, and about 30 percent are not salvageable. For roughly 19 percent of the salvageable properties, a key problem is high vacancy rates, which could be addressed by professional tenant placement services. Bundling has greater potential, but requires purchases at below market prices, amounting to a subsidy.     

Housing Choice Vouchers and Crime in Charlotte,NC

Recent media attention and research have focused on the effect of housing vouchers on crime, with different conclusions. The purpose of this study is to bring further evidence to the voucher–crime debate, using annual data from 2000 to 2009 for Charlotte-Mecklenburg County. We study the relationship between crime counts and housing vouchers with quantile regression models with year and census tract fixed effects. We found that voucher households are associated with increased crime, controlling for past crime levels. Estimates vary, however, with the concentration of vouchers in the neighborhood, with little impact in areas with low concentrations. Estimates also vary with the neighborhood crime level. We extend the literature by examining the effect of different voucher family types, finding no evidence that elderly households or nonelderly households without disabilities and without children are associated with more crime. However, we found a very significant positive association for nonelderly households without disabilities with children. Our results indicate that significant crime reductions could be accomplished by focusing U.S. Department of Housing and Urban Development, local housing agency, and criminal justice resources on the types of places and voucher families most at risk for crime problems when a family uses a voucher to move into a new neighborhood.     

A different lens: administrative perspectives on portability in Illinois' Housing Choice Voucher Program

Over the last decade, the Housing Choice Voucher Program has grown to become the USA's primary strategy for providing safe, decent, and affordable housing. Annually serving more than 2 million low-income households, the program is designed to help low-income households afford private market rental housing. The program also allows for the “portability” of vouchers nationally between housing authority jurisdictions. Both features aim to mitigate the effects of concentrated poverty. Research on the Moving to Opportunity Program and the Gautreaux consent decree have produced data confirming that residential mobility can at times lead to positive opportunities for assisted households. This past research has been conducted on specific programs occurring outside of the general Housing Choice Voucher Program framework and has focused on household-level outcomes, paying little attention to the ways in which program administration may affect outcomes for voucher households. This article aims to understand voucher portability from the perspective of housing authority executive directors and program administrators, in order to better understand how program administration impacts the types of household outcomes observed in prior research. The results reveal that housing authority administrative practices and inter-housing authority relationships play a significant role in shaping the types of outcomes realized by porting voucher households. These findings suggest several changes to program administrative design and policy that may improve support for voucher households as they make portability moves.     

Impacts of Heading Home Hennepin's Housing First programs for long-term homeless adults

This paper evaluates the impact of Heading Home Hennepin’s Housing First programs for long-term homeless individuals with work-limiting disabilities. These programs combine subsidized housing and extensive case management services to help program participants maintain stable housing. Using a matched comparison of housing-first participants and nonparticipants residing in public shelters, this study finds that housing-first placement is associated with a substantial decrease in public shelter use, an increase in public health insurance coverage, and a decrease in arrests and incarceration. Most of the decline in arrests is due to decreases in arrests for livability and drug-related charges and not for violent or property crime.     

The impact of source of income laws on voucher utilization

Vouchers are lauded both for being the most efficient way of delivering housing assistance to needy households and for the potential to allow poor households to access better neighborhoods. The success of vouchers is of course predicated on recipients being able to successfully use a voucher. For a number of reasons, including discrimination by landlords on the basis of source of income (i.e. a voucher), voucher recipients frequently cannot find apartments to lease. Using a difference-in-differences approach the research reported here examines how Source of Income anti-discrimination laws affect the utilization of housing vouchers.

The findings indicate that utilization rates are higher among Local Housing Authorities in jurisdictions with Source of Income anti-discrimination laws. These findings suggest such laws can be an effective tool for increasing the rate at which vouchers are successfully utilized. In a time of scarce resources for affordable housing this is an important policy tool that should not be over looked.     

American murder mystery revisited: do housing voucher households cause crime?

This paper reviews the current state of the housing market, particularly in the shadow of the foreclosure crisis, the collapse of the financial system, and persistent unemployment. The authors outline the policy priorities necessary to facilitate the recovery of the housing market in general and to encourage comprehensive revitalization of the hardest hit communities.     

Challenges in the Creation of Mixed-Use Affordable Housing: Measuring and Explaining Its Limited Prevalence

ABSTRACT

Mixed-use affordable housing buildings collocate residences and commercial uses. The Low-Income Housing Tax Credit (LIHTC) program provides one mechanism to fund such structures. But the literature offers little insight into the frequency of mixed-use LIHTC buildings, partly because of a lack of data identifying them, and it does not pinpoint conditions that facilitate their development. I explore these issues through a Chicago, Illinois, case study. First, I analyze imagery to create the first database of mixed-use LIHTC buildings. I show that only 5% of LIHTC structures incorporate commercial uses, and that these are concentrated in wealthier, whiter, and already retail-heavy neighborhoods. Second, I use stakeholder interviews to explain the low rate and selective location of mixed-use projects; I find that the stiffest barriers are conflicting governmental policies, difficulties securing financing in the context of a perception of weak retail demand and investor desires for reliable returns, and design constraints.