Dallas\u2013Fort Worth, TX, has spent years adding apartments at a pace that\u2019s\u00a0pushed rents down 2.9%\u00a0from a year earlier, according to\u00a0Realtor.com data. <\/p>\n
But a new analysis suggests that it would take an estimated 474 years for that same relief to reach its most cost-burdened residents.<\/p>\n
That\u2019s nearly three times the comparable estimate of 169 years for the\u00a0New York City metro area. <\/p>\n
Big Apple rents, meanwhile, were up more than 6% from a year earlier.<\/p>\n
Those counterintuitive findings come from the new\u00a0Housing Affordability Toolkit from the National Multifamily Housing Council and NYU Urban Lab, a sweeping new policy resource designed to help cities address the nation\u2019s rental housing affordability crisis.<\/p>\n
The contrast is not an argument that\u00a0New York\u00a0City has solved its housing crisis\u2014it clearly has not. <\/p>\n
But it gets at a piece of the affordability debate that often gets lost inside bigger conversations about rent growth and housing supply: whether the homes being built can ever reach renters whose incomes are too low to support market rent.<\/p>\n
Aerial view of downtown Dallas, Texas. Nate Hovee \u2013 stock.adobe.com<\/p>\n
In the words of\u00a0Caitlin Sugrue Walter, NMHC\u2019s senior vice president of research and innovation, \u201cThe data make clear that the rental affordability crisis is not one problem\u2014it\u2019s several, each requiring its own set of tools.\u201d<\/p>\n
Or, as the examples of Dallas and New York City show, a city can build enough apartments to bring asking rents down without solving the housing crisis for those most in need of relief.<\/p>\n
The oxymoron of \u2018affordable housing\u2019<\/p>\n
The report points to several issues holding back the development of affordable rental housing, all of them rooted in the same problem: These projects are expensive to build, but often generate too little income to support themselves.<\/p>\n
Consider a standard apartment development. A project is generally deemed viable when the rent it can collect is high enough to cover acquisition, construction, financing, and operating costs. <\/p>\n
Add more of those units, and renters have more options, which slows rent growth and, eventually, pulls asking rents down\u2014that\u2019s essentially the thesis that Dallas has proved works.<\/p>\n
Single-family homes along Northeast Green Oaks Boulevard in North Arlington, Texas. trongnguyen \u2013 stock.adobe.com<\/p>\n
But\u00a0deeply affordable housing starts with a different equation. <\/p>\n
These projects often operate under restricted rent structures, which can leave net operating income too low for the deal to pencil out on its own.<\/p>\n
Less income means less debt the project can support, and that difference has to be filled through tax credits, public capital, below-market loans, tax abatements, project-based rental assistance, vouchers, and operating subsidies\u2014each solution more onerous, time-consuming, and costly than the last.<\/p>\n
One analysis suggests that these types of projects can be as much\u00a0as twice as expensive\u00a0to build as a typical market-rate project due to the added costs of closing the financing gap. <\/p>\n
Another gives these projects the dubious description of \u201cAffordable Housing Is an Oxymoron.\u201d<\/p>\n
However you slice it, the cost reality for developers has depressed the supply of these units. <\/p>\n
The report estimates that subsidized affordable homes account for about 14.3% of occupied rental housing nationwide, while even high-production years have produced fewer than 200,000 new subsidized units.<\/p>\n
Bar chart showing cities where relief from high rents is still years away, with St. Louis at 956 years and Dallas-Fort Worth-Arlington at 474 years. Realtor.com<\/p>\n
Despite those barriers, there is no shortage of need.<\/p>\n
\u201cThe numbers are too big to spin,\u201d\u00a0Matthew Kwatinetz, clinical associate professor at NYU SPS Schack, director of the NYU Urban Lab, and Toolkit author, said. There are \u201c22.4 million rent-burdened households, 10.1 million households that can\u2019t even afford to pay utility costs.\u201d<\/p>\n
Why New York City has a shorter clock<\/p>\n
For his part, New York City Mayor\u00a0Zohran Mamdani\u00a0has put those renters at the center of his housing plan\u2014even as the city faces its own century-and-a-half timeline to close the affordable housing gap.<\/p>\n
That commitment was on display this week, when Mamdani and City Council Speaker\u00a0Julie Menin\u00a0reached a last-minute budget agreement that included a new\u00a0$175 million rental-assistance program for New Yorkers at risk of eviction or homelessness.<\/p>\n
\u201cWe accelerated the affordability agenda by investing in housing, mental health services, parks, libraries, and students of all ages,\u201d Mamdani said in announcing the deal. \u201cThis agreement proves that fiscal responsibility and public excellence can go hand in hand.\u201d<\/p>\n
New York City is the near mirror image of Dallas. The city has more of the machinery needed to close the gap, but it is trying to make that machinery work in one of the country\u2019s most expensive and constrained housing markets. David Gales \u2013 stock.adobe.com<\/p>\n
His broader\u00a0Block by Block plan<\/a>\u00a0makes the same premise explicit, while also highlighting the infrastructure required to move these apartments from idea to reality: a robust subsidy system, a large public-housing authority, rental assistance, tax abatements, and preservation programs that can keep lower-cost homes from disappearing.<\/p>\n But the toolkit suggests New York City\u2019s affordability problems are bigger than any one program can address.<\/p>\n In that sense, New York City is the near mirror image of Dallas. <\/p>\n The city has more of the machinery needed to close the gap, but it is trying to make that machinery work in one of the country\u2019s most expensive and constrained housing markets.<\/p>\n The problem is bigger than Dallas and New York City<\/p>\n New York City is far from alone. Perhaps the most striking part of the toolkit\u2019s metro rankings is how widely the timelines vary by city\u2014and how often fast-growing, lower-cost markets still fall into the same century-plus category as the Big Apple.<\/p>\n Only 13 metros in the ranking could close their affordable housing gaps in less than a century at their current pace. <\/p>\n Every other metro in the report\u2019s ranking faces an estimated wait of at least 100 years.<\/p>\n In rapidly growing markets such as\u00a0Phoenix<\/a>,\u00a0Miami<\/a>,\u00a0Jacksonville, FL<\/a>,\u00a0Orlando, FL<\/a>, and\u00a0Houston<\/a>, those timelines stretch from more than two centuries to more than five.. Kevin Ruck \u2013 stock.adobe.com<\/p>\n In rapidly growing markets such as\u00a0Phoenix<\/a>,\u00a0Miami<\/a>,\u00a0Jacksonville, FL<\/a>,\u00a0Orlando, FL<\/a>, and\u00a0Houston<\/a>, those timelines stretch from more than two centuries to more than five.<\/p>\n The report also found that 38 of the country\u2019s 50 largest metros had average two-bedroom rents above their affordability threshold and failed the test for new naturally occurring affordable housing. <\/p>\n In other words, many cities are not only failing to add enough subsidized housing\u2014they also are no longer producing much unsubsidized housing that lower-income renters can realistically afford.<\/p>\n It\u2019s a clear illustration of how the timeline to address those needs is shaped by far more than rents alone: the size of the rent-burdened population, the pace of subsidized-housing production, development costs, and whether local governments have systems in place to preserve older low-cost homes, layer subsidies, and make new projects feasible.<\/p>\n Pressure at the bottom of the market pushes upward, raising the cost and competition for everyone relying on the next cheapest apartment. Andy Dean \u2013 stock.adobe.com<\/p>\n What happens when there is nowhere cheaper to go?<\/p>\n The case for closing this gap extends beyond the fact that the most cost-burdened renters need a place to live. <\/p>\n Pressure at the bottom of the market pushes upward, raising the cost and competition for everyone relying on the next cheapest apartment.<\/p>\n The toolkit breaks this powder keg of demand as follows: Of the country\u2019s 22.4 million rent-burdened households, about 4.3 million households could benefit from more market-rate supply, 10.1 million more have incomes too low for the private market to serve on its own and are subsidy-dependent, and roughly 8 million more households fall somewhere in between\u2014too burdened for the market as it exists, but not necessarily served by deep subsidy.<\/p>\n When cities fail to build or preserve homes, these households compete for the same older, lower-cost apartments that moderate-income renters also rely on. <\/p>\n And that supply is already shrinking: The report notes that the U.S. lost more than 500,000 low-rent units between 2019 and 2022, or more than 150,000 a year\u2014more than the average annual production of new Low-Income Housing Tax Credit Program rental homes during that period.<\/p>\n","protected":false},"excerpt":{"rendered":"Dallas\u2013Fort Worth, TX, has spent years adding apartments at a pace that\u2019s\u00a0pushed rents down 2.9%\u00a0from a year earlier,…\n","protected":false},"author":2,"featured_media":358969,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[116,118,117,6764,7714,111,27],"class_list":["post-358968","post","type-post","status-publish","format-standard","has-post-thumbnail","category-fort-worth","tag-fort-worth","tag-fort-worth-headlines","tag-fort-worth-news","tag-luxury-real-estate","tag-new-york-city","tag-real-estate","tag-texas"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/358968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=358968"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/358968\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/358969"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=358968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=358968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=358968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}