Waunakee Housing Task Force Image by Paul Whitley, via Flickr https://www.flickr.com/photos/nbsinyk/5154118365 Waunakee Housing Task Force November 8 Pre-Work

“The Geography of Opportunity” Housing unit diversity [or the lack of diversity] fundamentally shapes both the demographic structure of suburban communities, but also geographically structures opportunities for all metropolitan households. Paulsen, Kurt. (2012). The evolution of suburban relative housing unit-diversity. Housing Policy Debate 22(3) 407-433

Concerns: Housing Unit Diversity 1. Increasingly diverse household structures 2. Shift in federal housing policy towards household mobility & poverty decentralization 3. Spatial mismatch of employees and jobs 4. Increased/excess commuting and traffic congestion In the 2010 U.S. Census, one out of five households had children under the age of 18. Yet suburban housing is largely focused on single family detached housing units on individual lots with three (or more) bedrooms. The federal government has shifted to a policy of decentralizing impoverished households, and emphasizing mobility. These strategies rely on the availability of housing units able to accommodate dispersed households. Job opportunities and employment base are mismatched, resulting in higher concentrations of poverty [and there may be implications for availability of workers for employers – KR] Growth of jobs in suburban communities without a concordant increase in housing options or availability forces increased commutes and results in greater congestion. This could negatively impact regional welfare and economic development. Paulsen, Kurt. (2012). The evolution of suburban relative housing unit-diversity. Housing Policy Debate 22(3) 407-433

Exclusionary Land Use “The severest criticism of local land-use regulations is that, by artificially inflating the cost of housing, they act to exclude lower-income households from suburban communities.” So what? Why is this an issue? “The validity of this criticism has become a major issue because, in comparison with inner cities, suburban communities are thought to offer lower-income households improved social and economic opportunities.” –Ihlandfeldt Note that lower income could be an absolute measure or a relative measure, i.e. as a relative measure, we could decide that lower income is defined as 80% of local median income or lower (in Waunakee this would be those households with incomes 80% of median ($74k) or lower; in Dane County those households with incomes of $52k or lower) Ihlanfeldt, Keith R. (2012). Exclusionary land-use regulations in suburban communities: A review of the evidence and policy prescriptions. Urban Studies 41(2) 261-283.

What effect do local land-use regulations have on the cost of housing? 1. Growth controls and characteristics zoning act to increase price, although there are some exceptions. 2. Subdivision restrictions are associated with higher price levels. Reductions in supply may come from three sources: 1) direct restrictions on housing supplies (caps placed on residential building permits), 2) direct increases in construction costs (i.e. building codes that require expensive components or subdivision regulations that specify wide streets w/sidewalks etc.), 3) Indirect increases in construction costs caused by delays resulting from a lengthy permitting process (pg 263) With regards to 2: based on a longitudinal study of housing prices in Waukesha, published as peer reviewed (all work cited in this is peer reviewed) Ihlanfeldt, Keith R. (2012). Exclusionary land-use regulations in suburban communities: A review of the evidence and policy prescriptions. Urban Studies 41(2) 261-283.

Are the higher housing prices that result from regulations caused by reductions in housing supply or increases in housing demand? There is some evidence that more restrictive land use regulations results in a reduction of housing supply. However, there is variation. A study in which regulations were not binding showed no significant effects on price (KR – in other words, municipalities in which regulations aren’t enforced or are ignored show not increases in price) A survey of planners in 44 MSAs* (metropolitan statistical areas) from 1985 to 1996 indicates that a longer time for a subdivision to be approved is related to higher housing costs. However, this same study did not find an association between impact or development fees and higher housing prices. *A metropolitan statistical area is a city/suburb region around a major population center. For example, the Madison MSA includes all of Dane County and parts of adjacent counties (Sauk, Columbia, Green etc.) MSA accounts for the fact that municipal boundaries are not always the best boundaries for judging what is happening in an area. Ihlanfeldt, Keith R. (2012). Exclusionary land-use regulations in suburban communities: A review of the evidence and policy prescriptions. Urban Studies 41(2) 261-283.

Do local land use regulations contribute to income and racial segregation within metropolitan areas? 1. Cities whose land use policies favor single family housing experienced growth in non-Hispanic whites, and less growth among Asians and Hispanic residents. 2. Growth in African American residents is also related to single family detached housing, but with less impact than on non-Hispanic white residents. However, there are a number of studies indicating that increased land use regulation decreases the proportion of the population identifying as African American. It is important to note that these studies did not take into account changes in the overall racial composition of the region studied during the time period that was studied. Ihlanfeldt, Keith R. (2012). Exclusionary land-use regulations in suburban communities: A review of the evidence and policy prescriptions. Urban Studies 41(2) 261-283.

Do local land use regulations contribute to spatial mismatch in the labor market among lower-skilled workers? There is evidence that restrictive land use regulations may have effects on the intra-urban geography of economic opportunity among lower skilled workers No evidence of effects on middle to upper income workers – perhaps because this is not necessarily the focus of many studies. OR it could also be that middle and upper income workers have the means to commute to work (which then triggers the excessive commuting discusses a few slides ago). Ihlanfeldt, Keith R. (2012). Exclusionary land-use regulations in suburban communities: A review of the evidence and policy prescriptions. Urban Studies 41(2) 261-283.

Are there previous decisions regarding land use in Waunakee that might be affecting affordability? If so, what are these decisions?