scholarly journals Green Affordable Housing: Cost-Benefit Analysis for Zoning Incentives

2019 ◽  
Vol 11 (22) ◽  
pp. 6269 ◽  
Author(s):  
Armin Jeddi Yeganeh ◽  
Andrew Patton McCoy ◽  
Steve Hankey
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Local Governments ◽  
Renewable Energy Sources ◽  
Spillover Effects ◽  
Housing Cost ◽  
Listing Service ◽  
Transaction Prices ◽  
Market Rate ◽  
Housing Units

In the year 2017, about 89% of the total energy consumed in the US was produced using non-renewable energy sources, and about 43% of tenant households were cost burdened. Local governments are in a unique position to facilitate green affordable housing, that could reduce cost burdens, environmental degradation, and environmental injustice. Nonetheless, limited studies have made progress on the costs and benefits of green affordable housing, to guide decision-making, particularly in small communities. This study investigates density bonus options for green affordable housing by analyzing construction costs, transaction prices, and spillover effects of green certifications and affordable housing units. The authors employ pooled cross-sectional construction cost and price data from 422 Low-Income Housing Tax Credit (LIHTC) projects and 11,016 Multiple Listing Service (MLS) transactions in Virginia. Using hedonic regression analyses controlling for mediating factors, the study finds that the new construction of market-rate green certified houses is associated with small upfront costs, but large and statistically significant price premiums. In addition, the construction of market-rate green certified houses has large and statistically significant spillover effects on existing non-certified houses. Existing non-certified affordable housing units show small and often insignificant negative price impacts on the transaction prices of surrounding properties. The study concludes that the magnitude of social benefits associated with green building justifies the local provision of voluntary programs for green affordable housing, where housing is expensive relative to its basic cost of production.

scholarly journals Green Affordable Housing: Implications of Costs and Benefits for Municipal Incentives

2019 ◽  
Author(s):  
Armin Jeddi Yeganeh ◽  
Andrew Patton McCoy ◽  
Steve Hankey
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Local Governments ◽  
Renewable Energy Sources ◽  
Spillover Effects ◽  
Listing Service ◽  
Costs And Benefits ◽  
Construction Costs ◽  
Market Rate ◽  
Housing Units

In the year 2017, about 89 percent of the total energy consumed in the US was produced using non-renewable energy sources, and about 43 percent of tenant households were cost-burdened. Local governments are in a unique position to facilitate green affordable housing that could reduce cost burdens, environmental degradation, and environmental injustice. Nonetheless, limited studies have made progress on costs and benefits of green affordable housing to guide decision-making, particularly in small communities. This study investigates density bonus options for green affordable housing by analyzing construction costs, sale prices, and spillover effects for green certifications and affordable housing units. The authors employ construction costs and sale data from 422 Low-Income Housing Tax Credit (LIHTC) projects and 11,418 Multiple Listing Service (MLS) transactions in Virginia. Using hedonic regression analyses controlling for mediating factors, we find that the new construction of market-rate green certified houses is associated with small upfront costs but large and statistically significant price premiums. The construction of market-rate green certified houses has large and statistically significant spillover effects on existing non-certified houses. Existing non-certified affordable housing units show small and statistically insignificant negative price impacts on transactions of surrounding properties. The magnitude of social benefits associated with green building justifies the local provision of voluntary programs for green affordable housing where housing is expensive relative to its basic costs of production to promote sustainable development.

Millennial ‘YIMBYs’ and boomer ‘NIMBYs’: Generational views on housing affordability in the United States

2020 ◽  
pp. 003802612091612
Author(s):  
Max Holleran
Keyword(s):  
Baby Boomers ◽  
Affordable Housing ◽  
Low Income ◽  
Rental Housing ◽  
The United States ◽  
Housing Affordability ◽  
Single Family ◽  
Market Rate ◽  
Job Opportunities ◽  
Housing Costs

This article examines housing activism in five American cities using interviews with millennial-age housing activists, seeking more apartment development, and baby boomers who are members of neighbourhood groups that oppose growth. Many of the groups supporting growth have banded together under the banner of the ‘Yes in My Backyard’ (YIMBY) movement which seeks fewer zoning laws and pushes for market-rate rental housing. In desirable cities with thriving job opportunities, housing costs are pricing out not only low-income renters but also the middle class. The millennial activists sampled blame baby boomers for the lack of affordable housing because of resistance to higher density construction in neighbourhoods with single-family homes (characterising these people as having a ‘Not in My Backyard’ [NIMBY] mindset). The research shows that boomers and millennials not only disagree over urban growth but also more fundamental questions of what makes a liveable city.

Historic preservation in declining city neighbourhoods: Analysing rehabilitation tax credit investments in six US cities

Urban Studies ◽  
2016 ◽  
Vol 54 (7) ◽  
pp. 1673-1691 ◽  
Author(s):  
Stephanie Ryberg-Webster ◽  
Kelly L Kinahan
Keyword(s):  
Historic Preservation ◽  
Affordable Housing ◽  
Low Income ◽  
Population Decline ◽  
Comparative Case Study ◽  
Tax Credit ◽  
Market Rate ◽  
Wide Range ◽  
The Usa ◽  
Us Cities

Historic preservation is common practice across the world, including in US cities. At the same time, population decline, economic distress and vacancy prevalent in declining cities, also known as legacy, shrinking or post-industrial cities, creates a pressing threat to a vast array of urban historic buildings. In the USA, recent planning and policy emphasises strategic demolition and/or targeting resources in potentially viable neighbourhoods, with little attention paid to historic preservation. To fill this gap, we use a comparative case study of federal historic rehabilitation tax credit (RTC) investments from 2000 to 2010 across the neighbourhoods of six legacy cities: Baltimore, Cleveland, Philadelphia, Providence, Richmond and St. Louis. This is the first study to use disaggregated, longitudinal RTC data to analyse investment at the neighbourhood scale. We use the Hirschman-Herfindahl Index to evaluate investment concentration and US Census 2000 data to characterise neighbourhoods where developers chose to undertake RTC projects. The findings show that RTC investments occurred across a wide range of places, including very low- and low-income neighbourhoods, and produced both market-rate and affordable housing across each city’s neighbourhoods. The findings indicate that preservation occurs across a wide range of legacy city neighbourhoods and inform urban planners and policymakers about locations where the private sector is willing to invest with favourable financing.

A multiobjective optimization model for locating affordable housing investments while maximizing accessibility to jobs by public transportation

2017 ◽  
Vol 46 (3) ◽  
pp. 490-510 ◽  
Author(s):  
Qing Zhong ◽  
Alex Karner ◽  
Michael Kuby ◽  
Aaron Golub
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Public Transportation ◽  
Dispersion Model ◽  
Spatial Interaction ◽  
Location Model ◽  
Upper And Lower Bounds ◽  
Light Rail ◽  
Transit Accessibility ◽  
Housing Units

This paper develops a new optimal location model for siting affordable housing units to maximize the accessibility of low-income workers to appropriate jobs by public transportation. Transit-accessible housing allows disadvantaged populations to reduce their reliance on automobiles, which can lead to savings on transportation-related expenditures. The housing location model developed here maximizes transit accessibility while reducing the clustering of affordable housing units in space. Accessibility is maximized using a high-resolution space-time metric of public transit accessibility, originally developed for service equity analysis. The second objective disperses subsidized housing projects across space using a new minimax dispersion model based on spatial interaction principles. The multiobjective model trades off accessibility maximization and affordable housing dispersion, subject to upper and lower bounds on the land acquisition and construction budget. The model is tested using data for Tempe, AZ including actual data for vacant parcels, travel times by light rail and bus, and the location of low-wage jobs. This model or similar variants could provide insightful spatial decision support to affordable-housing providers or tax-credit administrators, facilitating the design of flexible strategies that address multiple social goals.

scholarly journals Land Provision for Decent and Affordable Housing for Low-Income Community in Salatiga City

2020 ◽  
Vol 6 (2) ◽  
pp. 113-122
Author(s):  
S Sunarti ◽  
Nany Yuliastuti ◽  
I Indriastjario
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Urban Housing ◽  
Primary Data ◽  
Housing Cost ◽  
Potential Map ◽  
Standard Set ◽  
The Government ◽  
Village Government ◽  
Document Review

The needs land for urban housing construction was increasingly difficult andmore pricey, so for low-income communities for able owned a house was not easy.Limited of land in an urban area, especially in small cities such as Salatiga, its land wasnot all can be used in housing constructions. This condition needed an interventionfrom the local government to facilitate their needs for housing could be fulfilled. Basedon the problems, the goals of this research studied a providing of land for decent andaffordable housing for low-income communities in Salatiga. The method used was amixed method with a sequential explanation strategy, that is by overlaying secondarydata on the land potential map from various sources that can be used for decenthousing with primary data, such as interview and document review with localgovernment to reduce of housing cost. The results of the study figure out that housingused a land owned by the village government can be affordable for low-incomecommunities with price less expensive below the standard set by the government.

scholarly journals Do segregated housing markets have a spillover effect on housing prices in nearby residential areas?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Ismail ◽  
Abukar Warsame ◽  
Mats Wilhelmsson
Keyword(s):  
Low Income ◽  
Local Governments ◽  
Housing Prices ◽  
Spillover Effect ◽  
Housing Markets ◽  
Spillover Effects ◽  
High Income ◽  
Housing Values ◽  
Content Type ◽  
Property Assessment

Purpose The purpose of this study is to analyse the trends regarding housing segregation over the past 10–20 years and determine whether housing segregation has a spillover effect on neighbouring housing areas. Namely, the authors set out to determine whether proximity to a specific type of segregated housing market has a negative impact on nearby housing markets while proximity to another type of segregated market has a positive impact. Design/methodology/approach For the purposes of this paper, the authors must combine information on segregation within a city with information on property values in the city. The authors have, therefore, used data on the income of the population and data on housing values taken from housing transactions. The case study used is the city of Stockholm, the capital of Sweden. The empirical analysis will be the estimation of the traditional hedonic pricing model. It will be estimated for the condominium market. Findings The results indicate that segregation, when measured as income sorting, has increased over time in some of the housing markets. Its effects on housing values in neighbouring housing areas are significant and statistically significant. Research limitations/implications A better understanding of the different potential spillover effects on housing prices in relation to the spatial distribution of various income groups would be beneficial in determining appropriate property assessment levels. In other words, awareness of this spillover effect could improve existing property assessment methods and provide local governments with extra information to make an informed decision on policies and services needed in different neighbourhoods. Practical implications On housing prices emanating from proximity to segregated areas with high income differs from segregated areas with low income, policies that address socio-economic costs and benefits, as well as property assessment levels, should reflect this pronounced difference. On the property level, positive spillover on housing prices near high-income segregated areas will cause an increase in the number of higher income groups and exacerbate segregation based on income. Contrarily, negative spillover on housing prices near low-income areas might discourage high-income households from moving to a location near low-income segregated areas. Local government should be aware of these spillover effects on housing prices to ensure that policies intended to reduce socioeconomic segregation, such as residential and income segregation, produce desirable results. Social implications Furthermore, a good estimation of these spillover effects on housing prices would allow local governments to carry out a cost–benefit analysis for policies intended to combat segregation and invest in deprived communities. Originality/value The main contribution of this paper is to go beyond the traditional studies of segregation that mainly emphasise residential segregation based on income levels, i.e. low-income or high-income households. The authors have analysed the spillover effect of proximity to hot spots (high income) and cold spots (low income) on the housing values of nearby condominiums or single-family homes within segregated areas in Stockholm Municipality in 2013.

scholarly journals ASSESSMENT OF NEIGHBOURHOOD AFFORDABILITY BASED ON HOUSING AND TRANSPORTATION COSTS IN KUALA LUMPUR, MALAYSIA

2013 ◽  
Vol 11 (2) ◽  
Author(s):  
Soheil Sabri ◽  
Ahmad Nazri M. Ludin ◽  
Foziah Johar
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Public Transport ◽  
Household Income ◽  
Transportation Cost ◽  
Transportation Costs ◽  
Housing Cost ◽  
Transit Oriented Development ◽  
Kuala Lumpur ◽  
Medium Cost

One of the primary aims of transit-oriented development (TOD) is to reduce auto dependency, especially for low-income as well as senior residents. This study aims at providing some guiding principles for development of affordable housing with respect to TOD concept. As such, the study employed an index called Affordability Index (AI) and adapted for the study area to assess the neighbourhoods' affordability. It is composed of housing cost, household transportation cost, and household income. The analyses were conducted on three neighbourhoods in Kuala Lumpur, Malaysia. The results reveal that the AI is lower for both owners and renters in the neighbourhood farther away from the LRT station, where there is less public transit facility, despite the existence of more affordable housing. On the contrary, the index is high in the neighbourhood where the distance to LRT station is shorter, connectivity index is higher, and there are more public transport facilities, despite the presence of high- and medium-cost housings. These findings can be used to plan for suitable public transport facilities in view of neighbourhood affordability.

scholarly journals The Mirage of Housing Affordability: An Analysis of Affordable Housing Plans in New York City

SAGE Open ◽  
2018 ◽  
Vol 8 (4) ◽  
pp. 215824401880921 ◽  
Author(s):  
Bakry Elmedni
Keyword(s):  
New York ◽  
New York City ◽  
Private Sector ◽  
Affordable Housing ◽  
Low Income ◽  
York City ◽  
Local Governments ◽  
Housing Affordability ◽  
Unintended Consequences ◽  
Major Player

In the opening of the 21st century, housing affordability was described by the U.S. Congress as the most urgent issue facing America. This article provides an analysis of how feasible Mayor de Blasio’s Five Borough Ten-Year Plan will be in providing adequate affordable housing to low-income residents in New York City (NYC). It examines three main topics: (a) the Plan’s focus on using the private sector to achieve public goals and whether this is likely to come with unintended consequences such as less focus on the needy and gentrification of struggling neighborhoods, (b) the role of the nonprofit sector, which has historically been a major player in housing policies in the NYC, and (c) how much influence or control a municipal government has on economic forces to avoid negative outcomes. The analysis reveals that while providing any number of affordable units is a positive thing, it is unreasonable to assume that this intervention alone can adequately address the housing affordability crisis in NYC. This article also exposes other emerging problems as the plan is being implemented. One major concern is that through tax credits and rezoning efforts to encourage private-sector development, the Plan may wind up benefiting housing developers and gentrifiers more than actually ameliorating the housing crisis in NYC. Housing affordability is a multifaceted issue which requires a multifaceted approach from federal and state governments working in tandem with local governments.

Housing affordability sets us apart: The effect of rising housing prices on relocation behaviour

Urban Studies ◽  
2020 ◽  
pp. 004209802094348
Author(s):  
Tim Winke
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Housing Prices ◽  
Real Estate Market ◽  
Housing Affordability ◽  
City Centre ◽  
Housing Cost ◽  
Middle Income ◽  
Time Dynamics ◽  
Quasi Experimental

Life course events such as new offspring or job loss affect a household’s demand for housing. At the same time, dynamics in the real estate market constrain where households find affordable housing. In a quasi-experimental design, this study examines the effect of increasing local housing prices on the relocation behaviour of low- and medium-income households. Difference-in-difference panel regressions using propensity score matching show that with rising local rental prices, low-income households are more likely to remain in their current housing and sustain higher levels of housing cost burden. If they move, they relocate further out of the city centre and to neighbourhoods with high unemployment rates. Rising housing markets facilitate socio-spatial segregation as middle-income households remain in economically better-off neighbourhoods. The findings highlight the additional costs of increasing housing prices in terms of the misallocation of housing and the spatial concentration of vulnerable households at the outskirts of cities.

scholarly journals ASSESSMENT OF NEIGHBOURHOOD AFFORDABILITY BASED ON HOUSING AND TRANSPORTATION COSTS IN KUALA LUMPUR, MALAYSIA

2013 ◽  
Author(s):  
Soheil Sabri ◽  
Ahmad Nazri M. Ludin ◽  
Foziah Johar
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Public Transport ◽  
Household Income ◽  
Transportation Cost ◽  
Transportation Costs ◽  
Housing Cost ◽  
Transit Oriented Development ◽  
Kuala Lumpur ◽  
Medium Cost

One of the primary aims of transit-oriented development (TOD) is to reduce auto dependency, especially for low-income as well as senior residents. This study aims at providing some guiding principles for development of affordable housing with respect to TOD concept. As such, the study employed an index called Affordability Index (AI) and adapted for the study area to assess the neighbourhoods' affordability. It is composed of housing cost, household transportation cost, and household income. The analyses were conducted on three neighbourhoods in Kuala Lumpur, Malaysia. The results reveal that the AI is lower for both owners and renters in the neighbourhood farther away from the LRT station, where there is less public transit facility, despite the existence of more affordable housing. On the contrary, the index is high in the neighbourhood where the distance to LRT station is shorter, connectivity index is higher, and there are more public transport facilities, despite the presence of high- and medium-cost housings. These findings can be used to plan for suitable public transport facilities in view of neighbourhood affordability.

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