Housing GSO: HRA Greensboro Affordable Housing Plan

MARKET CONTEXT

HOUSING SUPPLY | Causes of Housing Gap

The increasing housing gap in Greensboro is being driven by the loss of naturally-occurring affordable units and by declining wages for earners without a college degree.

Rent Distribution, 2010-2017

Real Growth in Rent Relative to Median Household Income, 2010-2017

2010

2017

25,000

% Change Asking Rent % Change Median Renter Income % Change Median Earnings w/o Bachelors

+7.5K

-2.3K

20,000

13%

+5.9K

15,000

5%

-2.7K

10,000

2%

5,000

0

Less than $500

$500-$750

$750-$1,000

$1,000+

2010 2011 2012 2013 2014 2015 2016 2017

Required Household Income to Afford Rent:

Less than $20K

$20K-$30K

$30K-$40K

$40K+

Greensboro’s recent population growth has been driven by renter households, with the most dramatic increases amongst high-income renters.

In 2010 and 2017, the bulk of Greensboro’s rental properties were affordable to households earning the median renter income of $31,248. However, the supply of units affordable to low-income households significantly declined from 2010 to 2017. This decline of naturally-occurring affordable rental housing is likely due to older units becoming obsolete and general market pressures.

This explains why even though median renter income has outpaced rent growth, rental affordability challenges still occur at the lowest income levels, particularly for residents without a college degree, who have seen their earnings lag rent increases. These income challenges, combined with the declining supply of naturally-occurring affordable rental housing, will widen the city’s existing rental housing gap.

Source: 2010, 2017 ACS Estimates

Source: ACS Estimates (2010 and 2017), CoStar

HR&A Advisors, Inc.

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