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2. BUSTING THE
5 MYTHS
5 MYTHS
OF AFFORDABLE HOUSING

3. presented by

4. Taking Action to Solve America’s Housing Crisis
the Campaign for Affordable Housing
Taking Action to Solve America’s Housing Crisis

5. USDA Photo

6. Affordable Housing is needed by individuals, families and communities…
Affordable Housing is needed by individuals, families and communities…
…and the truth is, it is good for the neighborhoods in which it is built.

7. 
In recent decades, home prices and rental rates have increased faster than income in most parts of the country, increasing the need for affordable housing.

8.  Wages and the Cost of Housing in the United States
Homeownership Market 2005
Median Priced Home1 (Single- and Multi-Family): $225,000
$71,354
$45,320
$43,858
$36,531
Annual Income Needed2
Police Officer3
Nurse (LPN)3
Elementary School Teacher3
Typical Annual Salaries (2005)
$22,588
$22,753
Retail Salesperson3
Janitor3
1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005.
2The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance.
3Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.
Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.

9.  Wages and the Cost of Housing in the United States
Rental Market 2005
Fair Market Rent (2 Bedroom): $799/month
$15.37
$14.40
$12.87
$11.34
Hourly Wage Needed2
Child Care Worker3
Retail Salesperson3
Security Guard3
Typical Annual Salaries (2005)
$10.76
$9.97
Bank Teller3
Hair Dresser3
1Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units.
2The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition.
3Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.
Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.

10. 
USDA Photo
As baby boomers enter retirement, higher demand for housing for low-income seniors is expected.

11. 
Medical advances allow many older and disabled Americans to live in their own homes for longer periods.

12. 
Why isn’t more affordable housing being built, especially when…
The need is growing,
Many state and local laws require it, and
Solutions exist?

13. 
ANSWER:
Because many community residents and officials oppose the building of affordable housing based on misunderstandings…

14. 
“…NIMBYism takes many forms. It can be as overt as a public demonstration against a new housing development. It also can be as insidious as the rigid application of zoning regulations that perpetuate social and economic segregation. Whatever its form, NIMBYism reflects the perception among existing residents that additional housing for low-to moderate-income people in their neighborhoods will hurt their property values or quality of life by increasing such problems as traffic congestion, crime and crowding of local public facilities.”1
1Paycheck to Paycheck: Wages and the Cost of Housing in Counties, published May 2004 by The Center for Housing Policy, the research affiliate of the National Housing Conference.

15. 
We can all help expand the supply of safe, decent and affordable housing by becoming...

16. Myth Busters
Myth Busters

17.  The 5 most common myths about affordable housing are:
Affordable housing is ugly.
Affordable housing produces more traffic.
Affordable housing increases crime.
Affordable housing overburdens schools and infrastructure.
Affordable housing lowers property values.

18. Myth 1: Affordable housing is ugly.
Myth 1: Affordable housing is ugly.
Myth 1: Affordable housing is ugly.
THE TRUTH:
Affordable housing is designed to
fit the community character in
size and style. It is privately owned, designed and developed.

19. Myth 1: Affordable housing is ugly.
Myth 1: Affordable housing is ugly.
THE TRUTH:

20. Myth 1: Affordable housing is ugly.
Myth 1: Affordable housing is ugly.
THE TRUTH:
All over the country, the old public housing projects of the mid-20th century are being torn down and replaced by attractive townhomes and apartments through the HOPE IV program.

21. Myth 1: Affordable housing is ugly.
Myth 1: Affordable housing is ugly.
THE TRUTH:
Before
Now

22. Myth 1: Affordable housing is ugly.
Myth 1: Affordable housing is ugly.
THE TRUTH:
Before
Now

23. Myth 1: Affordable housing is ugly.
Myth 1: Affordable housing is ugly.
THE TRUTH:
Before

24. Myth 1: Affordable housing is ugly.
Myth 1: Affordable housing is ugly.
THE TRUTH:
Now

25. Myth 2: Affordable housing produces more traffic.
Myth 2: Affordable housing produces more traffic.
Myth 2: Affordable housing produces more traffic.
THE TRUTH:
Building affordable housing near jobs supports the increased use of public transportation, shortens commutes and lessens congestion.

26. Myth 2: Affordable housing produces more traffic.
Myth 2: Affordable housing produces more traffic.
THE TRUTH:
The National Personal Transportation Survey found that low-income households make 40% fewer trips than other households.

27. Myth 2: Affordable housing produces more traffic.
Myth 2: Affordable housing produces more traffic.
THE TRUTH:
“Studies indicate that the average resident in a compact neighborhood will drive 20-30% less than residents of a neighborhood half as dense.”
“At densities of 8 units per acre and higher, neighborhoods begin to
support bus and rail transit….”
SOURCE: John Holtzclaw, Local Government Commission

28. Myth 3: Affordable housing increases crime.
Myth 3: Affordable housing increases crime.
Myth 3: Affordable housing increases crime.
THE TRUTH:
There is no correlation between safe, decent and affordable housing and crime.
Studies show that what does cause crime
(and a host of other socio-economic ills)
is community disinvestment, overcrowding,
lack of jobs and community services.

29. Myth 3: Affordable housing increases crime.
Myth 3: Affordable housing increases crime.
THE TRUTH:
Failure to build affordable housing leads to slum conditions of overcrowding, absentee owners and deteriorating properties with no alternatives available to low income families.

30. Myth 4: Affordable housing overburdens schools and infrastructure.
Myth 4: Affordable housing overburdens schools and infrastructure.
Myth 4: Affordable housing overburdens schools and infrastructure.
THE TRUTH:
Studies show that traditional single-family home neighborhoods have 2 to 3 times the number of school-aged children than those residing in apartments.

31. Myth 4: Affordable housing overburdens schools and infrastructure.
Myth 4: Affordable housing overburdens schools and infrastructure.
THE TRUTH:
Higher density housing provides economies of scale for utility infrastructure in trunk lines
and treatment plants.

32. Myth 4: Affordable housing overburdens schools and infrastructure.
Myth 4: Affordable housing overburdens schools and infrastructure.
THE TRUTH:
The U.S. Office of Technology Assessment found that it cost $10,000 [per unit] more to provide infrastructure to a lower density suburban development than to a more compact urban neighborhood. (OTA-EII-643, 1995)
Infrastructure costs per housing unit significantly decline as density increases: in developments at 30 units per acre or greater to about $10,000 from $90,000 per unit when built at 4 units per acre. (Urban Land Institute, Wieman, 1996)

33. Myth 5: Affordable housing lowers property values.
Myth 5: Affordable housing lowers property values.
Myth 5: Affordable housing lowers property values.
THE TRUTH:
Academic studies and market analysis all prove otherwise.

34. 
Myth 5: Affordable housing lowers property values.
THE TRUTH:
Just like many other studies, one from Wayne State (Michigan) University tracked property values before and after affordable housing
was built and found that affordable housing often has an insignificant or positive effect
on property values in higher-valued neighborhoods and improves values in
lower-valued neighborhoods.1
1See

35. www.nw.org/network/NewsRoom/ PressReleases/pdf/ExecutiveSummary.pdf
Myth 5: Affordable housing lowers property values.
THE TRUTH:
Further studies that support this truth can be found at:
PressReleases/pdf/ExecutiveSummary.pdf

36. 
THE TRUTH:

37. The Campaign for Affordable Housing
To learn more about our programs, publications and workshops, contact us at:
The Campaign for Affordable Housing
5900 Wilshire Boulevard, 26th Floor
Los Angeles, CA 90036
(323) phone
(323) fax