Modeling Housing Affordability in Corpus Christi, Texas December - - PowerPoint PPT Presentation

Modeling Housing Affordability in Corpus Christi, Texas

December 13, 2018

Ov Overview

• I. Background
• II. Owner-Occupied Housing Affordability
• III. Renter-Occupied Housing Affordability
• IV. Future Housing Needs
• V. Housing & Neighborhood Quality
• VI. Conclusion

• I. Background

Dem Demographic Ch Character eristi tics s (20 2017)

City of Corpus Christi Nueces County Population 325,600 361,221 Households 115,797 128,490 Median Family Income $63,100 $63,100 Percent of Owner- Occupied Housing Units 57% 58% Percent of Renter- Occupied Housing Units 43% 42%

Source: Department of Housing and Urban Development, U.S. Census Bureau

Own Owner er-Occupied Housin ing St Stock (20 2017)

Property Type Number of Owner- Occupied Units in the City of Corpus Christi Proportion of Owner- Occupied Units in the City of Corpus Christi Number of Owner- Occupied Units in Nueces County Proportion of Owner- Occupied Units in Nueces County

Single-family 82,996 92.6% 94,505 90.6% Condominium 3,620 4.0% 6,352 6.1% Townhouse 3,042 3.4% 3,491 3.3% Total 89,658 100.0% 104,348 100.0%

Source: Nueces County Appraisal District

Sp Spatia tial l Dis Distr tribution of Own Owner er-Occupied Housin ing St Stock (20 2017)

Source: Nueces County Appraisal District

Ren enter er-Occupied Housing St Stock (20 2017)

Property Type Number of Renter- Occupied Units in the City of Corpus Christi Proportion of Renter- Occupied Units in the City of Corpus Christi Number of Renter- Occupied Units in Nueces County Proportion of Renter- Occupied Units in Nueces County

1-4 30,427 61.7% 33,415 63.5% 5-9 8,630 17.5% 8,733 16.6% 10-49 6,259 12.7% 6,447 12.3% 50 or more 3,977 8.1% 4,014 7.6% Total 49,293 100.0% 52,609 100.0%

Source: U.S. Census Bureau

Sp Spatia tial l Dis Distr tribution of Ren enter er-Occupied Housing St Stock (20 2017)

Source: U.S. Census Bureau

Inc Income e Coh Cohort rts s (20 2017)

Income Cohort Percent of Median Family Income Income Range Percent of Households in the City of Corpus Christi Percent of Households in Nueces County Extremely Low Income 0 - 39% $0 - $24,600 22.9% 23.6% Very Low Income 40 - 49% $24,601 - $31,050 6.5% 6.6% Low Income 50 - 79% $31,051 - $49,700 17.0% 17.4% Workforce 80 - 120% $49,701 - $75,720 19.1% 18.3% Market-rate 121%+ $75,721+ 34.5% 34.1%

Source: Department of Housing and Urban Development, U.S. Census Bureau

Inc Income e Coh Cohort rts s by y Housi sing g Type ype (20 2017)

Income Cohort Income Range Percent of Owner- Occupied Households in the City of Corpus Christi Percent of Renter- Occupied Households in the City of Corpus Christi Percent of Owner- Occupied Households in Nueces County Percent of Renter- Occupied Households in Nueces County Extremely Low Income $0 - $24,600 16.3% 33.6% 15.7% 32.3% Very Low Income $24,601 - $31,050 4.9% 9.0% 4.7% 8.9% Low Income $31,051 - $49,700 13.7% 22.3% 13.4% 21.7% Workforce $49,701 - $75,720 19.1% 17.3% 19.4% 18.6% Market-rate $75,721+ 46.1% 17.8% 46.8% 18.4%

Source: Department of Housing and Urban Development, U.S. Census Bureau

Med edian ian Famil ily Inc Income in in Nue Nueces s Cou County ty by y Ce Censu sus Tract ct (20 2016)

Source: U.S. Census Bureau

De Definin ing Housi sing g Af Affordabili lity ty

• What does housing affordability measure for
• wner- and renter-occupied units?

Housing Affordability measures the relationship between home price or rent and median family (or household) income.

De Definin ing Housi sing g Af Affordabili lity ty

• Owner-Occupied Housing Affordability
• Median family (or household) income as a percentage of

required income to qualify for a mortgage

• Calculates the required income to qualify for a particular

home price based on the total monthly mortgage payment (monthly mortgage payment + additional expenses associated with homeownership)

• HAI = 1.10 means median income 10% > required income
• Renter-Occupied Housing Affordability
• Rent as a percentage of median family (or household)

income (Example: Rent is 30% of median income)

• II. Owner-Occupied Housing Affordability

Own Owner er-Occupied Housin ing Af Affordabil ilit ity in in th the e Corp Corpus-Chris isti i MSA

• Decline in owner-occupied affordability following the end
• f the Great Recession.

Source: Federal Financial Institutions Examination Council and Real Estate Center at Texas A&M University

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Owner-Occupied Housing Affordability in the Corpus-Christi MSA

Median Home Price Median Family Income +31% +39%

Widening gap between median home price and median family income diminishes affordability

Own Owner er-Occupied Housin ing Af Affordabil ilit ity in in th the e Corp Corpus-Chris isti i MSA

• However, the MSA remains relatively affordable with an HAI above 1.00.

Source: Federal Financial Institutions Examination Council and Real Estate Center at Texas A&M University

1.45 1.33 1.42 1.73 1.84 1.94 2.14 1.86 1.63 1.79 1.74 1.80 0.00 0.50 1.00 1.50 2.00 2.50 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Housing Affordability Index

Housing Affordability Index: Corpus-Christi MSA

Increasing Affordability Median Income > Qualifying Income Median Income < Qualifying Income

Own Owner er-Occupied Housin ing Af Affordabil ilit ity in in Corp Corpus s Ch Chris risti i vs.

• s. Oth

Other er Geog eographie ies

• While affordability has declined since the end of the Great

Recession, Corpus Christi is relatively affordable in comparison to other geographies.

Texas Corpus Christi Beaumont- Port Arthur Brownsville- Harlingen McAllen- Edinburg- Mission San Antonio- New Braunfels Victoria

2011 2.04 1.94 2.40 1.68 1.58 1.98 2.12 2017 1.54 1.80 2.01 1.54 1.54 1.59 2.06 Housing Affordability Index

Source: Real Estate Center at Texas A&M University

Home Pric rice e App Apprec eciation in in th the e Corp Corpus Ch Chris risti ti MSA

• Home price appreciation increased significantly following the Great Recession.
• However, the rate of increase has slowed over the past few years
• 10%
• 5%

0% 5% 10% 15% 20% 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Annual Home Price Appreciation in the Corpus Christi MSA, 1981-2017

Source: Federal Reserve Economic Data

Historical average: 2.7% Seven-year average (2011-2017): 3.5%

Res esid identi tial Sa Sales les Ac Activ tivity ty in in Nue Nueces Cou County ty

• Decline in sales of lowest-priced homes ($0-$149,999)
• Rise in sales of homes priced $150,000+ strains housing affordability for lower-

income households

Source: Real Estate Center at Texas A&M University

0% 5% 10% 15% 20% 25% 30% 2010 2011 2012 2013 2014 2015 2016 2017 Percent of Total Homes Sold

All Residential Sales in Nueces County (2010-2017)

$0 - $69,999 $70,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000 - $299,999 $300,000 -$399,999 $400,000+

Res esid identi tial Sa Sales les Ac Activ tivity ty in in th the e Cit City y of Corp Corpus Ch Chris risti ti

• Decline in sales of lowest-priced homes ($0-$149,999)
• Rise in sales of homes priced $150,000+ strains housing affordability for lower-

income households

Source: Real Estate Center at Texas A&M University

0% 5% 10% 15% 20% 25% 30% 35% 2010 2011 2012 2013 2014 2015 2016 2017 Percent of Total Homes Sold

All Residential Sales in the City of Corpus Christi (2010-2017)

$0 - $69,999 $70,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000 - $299,999 $300,000 - $399,999 $400,000+

Sp Spatia tial l Dis Distr tribution of Al All l Res esidentia ial l Sa Sales les

Source: Real Estate Center at Texas A&M University

Ne New w Res esid identi tial Sa Sales les (MLS) LS) Ac Acti tivit ity in in Nue Nueces Cou County ty

• Virtually no new construction of lowest-priced homes (less than $99,999)
• Significant decline in new construction of homes priced $100,000-199,999
• Tremendous growth in new construction of homes priced $200,000-299,999

Source: Real Estate Center at Texas A&M University 0% 10% 20% 30% 40% 50% 60% 2010 2011 2012 2013 2014 2015 2016 2017

Percent of New Homes Sold

New Residential Sales Activity in Nueces County (2010-2017)

$0 - $69,999 $70,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000 - $299,999 $300,000 - $399,999 $400,000+

Ne New w Res esid identi tial Sa Sales les (MLS) LS) Ac Acti tivit ity in in th the e Cit City y of Corp Corpus Ch Chris risti ti

• Virtually no new construction of lowest-priced homes (less than $99,999)
• Significant decline in new construction of homes priced $100,000-199,999
• Tremendous growth in new construction of homes priced $200,000-299,999

Source: Real Estate Center at Texas A&M University

0% 10% 20% 30% 40% 50% 60% 70% 2010 2011 2012 2013 2014 2015 2016 2017

Percent of New Homes Sold

New Residential Sales Activity in the City of Corpus Christi (2010-2017)

$0 - $69,999 $70,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000 - $299,999 $300,000 - $399,999 $400,000+

Sp Spatia tial l Dis Distr tribution of Ne New w Res esid identi tial Sa Sales les (MLS) LS) Ac Acti tivit ity

Source: Real Estate Center at Texas A&M University

Su Summary ry

• Overall, housing remains relatively

affordable in Corpus Christi.

• However, the decline in the supply of new

homes in the lowest price ranges diminishes housing affordability, particularly for low- income households.

What Is Affordable?

How w Much ch Home e Ca Can A A Househ ehold ld Af Afford? (20 2017)

Source: CoreLogic, Real Estate Center at Texas A&M University

Assumptions:

• Interest Rate: 4.28%
• LTV: 89.5%
• Qualifying Ratio: 39.75%
• Annual Expenses (Taxes, Property Insurance, and

Utilities): 6.00% of Home Value

How w Much ch Home e Ca Can A A Househ ehold ld Af Afford? (20 2017)

Source: CoreLogic, Real Estate Center at Texas A&M University

Family Income Maximum Home Price Affordable $20,000 $70,357 $30,000 $105,536 $40,000 $140,714 $50,000 $175,893 $60,000 $211,071 $70,000 $246,250 $80,000 $281,429 $90,000 $316,607 $100,000 $351,786

How w Much ch Home e Ca Can A A Family ly Af Afford? (20 2017)

Income Cohort Income Range Range in Maximum Home Price Affordable Extremely Low Income $0 - $24,600 $0 - $86,539 Very Low Income $24,601 - $31,050 $86,540 - $109,229 Low Income $31,051 - $49,700 $109,230 - $174,837 Workforce $49,701 - $75,720 $174,838 - $266,372 Market-rate $75,721+ $266,373+

Source: U.S. Department of Housing and Urban Development, CoreLogic

Supply an and Dem Demand of Owner-Occ ccupi pied d Ho Hous using ng in Nu Nueces County Bas ased on Total Ho Housing Stock (20 2017)

Income Cohort Family Income Range of Maximum Home Price Affordable Percent of Owner- Occupied Households Percent of Owner- Occupied Units Over or (Under) Supply

Extremely Low Income $0 - $24,600 $0 - $86,539

16.3% 22.9% 6,892

Very Low Income $24,601 - $31,050 $86,540 - $109,229

4.9% 9.7% 5,046

Low Income $31,051 - $49,700 $109,230 - $174,837

13.7% 30.5% 17,515

Workforce $49,701 - $75,720 $174,838 - $266,372

19.1% 22.8% 3,855

Market-rate $75,721+ $266,373+

46.1% 14.2% (33,307)

Source: U.S. Department of Housing and Urban Development, CoreLogic, Nueces County Appraisal District, Real Estate Center at Texas A&M University

Sup upply and nd Dem emand of Ow Owne ner-Occupied Hou

• using

g in n the he City

• f Corp
• rpus Chr

hris isti i Bas ased on n Tot

• tal

l Hou

• using Stoc
• ck (20

2017)

Income Cohort Family Income Range of Maximum Home Price Affordable Percent of Owner- Occupied Households Percent of Owner- Occupied Units Over or (Under) Supply

Extremely Low Income $0 - $24,600 $0 - $86,539

15.7% 21.6% 5,251

Very Low Income $24,601 - $31,050 $86,540 - $109,229

4.7% 10.1% 4,804

Low Income $31,051 - $49,700 $109,230 - $174,837

13.4% 32.8% 17,356

Workforce $49,701 - $75,720 $174,838 - $266,372

19.4% 23.7% 3,915

Market-rate $75,721+ $266,373+

46.8% 11.8% (31,326)

Source: U.S. Department of Housing and Urban Development, CoreLogic, Nueces County Appraisal District, Real Estate Center at Texas A&M University

But wait!

Supply an and Dem Demand of Owner-Occ ccupi pied d Ho Hous using ng in Nu Nueces Coun unty Bas ased on ML MLS Sal ales (201 2017)

Income Cohort Family Income Range of Maximum Home Price Affordable Percent of Owner- Occupied Households Percent of Owner- Occupied Units Over or (Under) Supply

Extremely Low Income $0 - $24,600 $0 - $86,539

16.3% 9.6% (6,951)

Very Low Income $24,601 - $31,050 $86,540 - $109,229

4.9% 6.4% 1,648

Low Income $31,051 - $49,700 $109,230 - $174,837

13.7% 27.0% 13,836

Workforce $49,701 - $75,720 $174,838 - $266,372

19.1% 32.6% 14,076

Market-rate $75,721+ $266,373+

46.1% 24.4% (22,608)

Source: U.S. Department of Housing and Urban Development, CoreLogic, Nueces County Appraisal District, Real Estate Center at Texas A&M University

Supp pply y an and d Dem Demand d of Owne ner-Occ ccupied Ho Housing in the City y of Corpu pus Christi Bas ased d on ML MLS Sal ales (201 2017) 7)

Income Cohort Family Income Range of Maximum Home Price Affordable Percent of Owner- Occupied Households Percent of Owner- Occupied Units Over or (Under) Supply

Extremely Low Income $0 - $24,600 $0 - $86,539

15.7% 9.8% (5,335)

Very Low Income $24,601 - $31,050 $86,540 - $109,229

4.7% 6.7% 1,782

Low Income $31,051 - $49,700 $109,230 - $174,837

13.4% 28.6% 13,624

Workforce $49,701 - $75,720 $174,838 - $266,372

19.4% 34.7% 13,744

Market-rate $75,721+ $266,373+

46.8% 20.2% (23,815)

Source: U.S. Department of Housing and Urban Development, CoreLogic, Nueces County Appraisal District, Real Estate Center at Texas A&M University

Su Summary ry

Affordability:

• The highest income cohort faces a supply shortage
• f owner-occupied units.
• This would suggest that households in the highest

income cohort are “buying down”—i.e., they are purchasing lower-priced homes. Availability:

• The lowest and highest income cohorts face a

supply shortage of owner-occupied units.

• The lowest income cohort must spend relatively

more to purchase a home.

Where Is the Supply of Housing by Income Cohort?

Spa Spatial Distribution of

• f Hom
• mes Affordable to

Eac ach Inc ncome Coh

• hort (20

2017)

Source: Nueces County Appraisal District

Spa Spatial Distribution of

• f Hom
• mes Affordable to

Eac ach Inc ncome Coh

• hort (20

2017)

Source: Nueces County Appraisal District

Where Do Homebuyers Purchase Homes?

Home Purchase se Origi Originati tions s in in Nue Nueces s Cou County (20 2011-2017)

Type of Loan Number of Loans Percent of Loans Median Loan Amount Median Applicant Income Estimated Median Price- to-Income Multiplier Conventional 10,752 52% $161,000 $90,000 2.52 FHA-insured 6,294 30% $151,000 $63,000 2.60 FSA/RHS- guaranteed 10 0.05% $86,000 $52,000 1.79 VA- guaranteed 3,671 18% $198,000 $78,000 2.76 Total 20,727 $164,480 $79,657 2.59

Source: Consumer Financial Protection Bureau

Average loan-to-value ratio: 89%

Hom Home Pur urchase Orig igin inatio ions in n Nue Nueces County y by by Inc ncom

• me Category

y (20 2011-2017)

• Majority of home purchase originations are for market rate housing

(households earning greater than 120% of the median family income)

• In essence, homeownership is not an option for extremely low or very

low income households (households earning less than 50% of the MFI)

Income Cohort Number of Home Purchase Originations Percent of Home Purchase Originations

Extremely Low Income

24 0.1%

Very Low Income

375 1.8%

Low Income

2,308 11.2%

Workforce

5,447 26.4%

Market-rate

12,472 60.5%

Source: Consumer Financial Protection Bureau

Home Purchase se Origi Originati tions s by y Ce Censu sus Tract ct (20 2017)

Source: Consumer Financial Protection Bureau

• III. Renter-Occupied Housing Affordability

An An Ov Overview of Ren enter er-Occupied Housin ing Af Affordabili lity

• The Department of Housing and Urban

Development (HUD) defines cost-burdened households as those who spend more than 30% of their income on rent.

• We have adopted this methodology into our

calculations of renter-occupied housing affordability.

How w Much ch Ren ent Ca Can A A Family ly Af Afford? (20 2017)

Income Cohort Family Income ($) Monthly Rent Affordable ($)

Extremely Low Income

$0 - $24,600 $0-$615

Very Low Income

$24,601 - $31,050 $616-$776

Low Income

$31,051 - $49,700 $777-$1,243

Workforce

$49,701 - $75,720 $1,244-$1,893

Market-rate

$75,721+ $1,894+ Median rent in Corpus Christi: $970

Source: Department of Housing and Urban Development

Su Supply and Dem Demand of Ren enter-Occ ccupied ed Housin ing in in Nue Nueces s Cou County (20 2017)

Source: U.S. Census Bureau, Department of Housing and Urban Development

Income Cohort Family Income Monthly Rent Affordable Percent of Renter- Occupied Households Percent of Renter- Occupied Units Over or (under)supply

Extremely Low Income

$0 - $24,600 $0-$615 33.6% 20.5% (6,892)

Very Low Income

$24,601 - $31,050 $616-$776 9.0% 14.1% 2,692

Low Income

$31,051 - $49,700 $777-$1,243 22.3% 34.4% 6,359

Workforce

$49,701 - $75,720 $1,244-$1,893 17.3% 23.2% 3,112

Market-rate

$75,721+ $1,894+ 17.8% 7.8% (5,271)

Source: Department of Housing and Urban Development, U.S. Census Bureau

Sup Supply and and Dem emand of

• f Ren

enter-Occ ccupied Hous

• using in

n the he City of

• f Cor
• rpus

s Chr hristi (2017)

Source: U.S. Census Bureau, Department of Housing and Urban Development

Income Cohort Family Income Monthly Rent Affordable Percent of Renter- Occupied Households Percent of Renter- Occupied Units Over or (under)supply

Extremely Low Income

$0 - $24,600 $0-$615 32.3% 19.8% (6,148)

Very Low Income

$24,601 - $31,050 $616-$776 8.9% 14.2% 2,619

Low Income

$31,051 - $49,700 $777-$1,243 21.7% 34.4% 6,216

Workforce

$49,701 - $75,720 $1,244-$1,893 18.6% 23.7% 2,469

Market-rate

$75,721+ $1,894+ 18.4% 7.9% (5,156)

Source: Department of Housing and Urban Development, U.S. Census Bureau

• IV. Future Housing Needs

Population Growth th

• The expected population of Nueces County is

374,157 people by 2020 and 407,534 people by 2030 (average annual growth of 0.89 percent).

• Since 2005, the average household size has

hovered between 2.64 and 2.78. Assuming an average household size of 2.71, the County needs,

• n average, 1,230 additional housing units each

year to keep pace with population growth.

• Over the past seven years (since the recovery from

the Great Recession), building permits averaged 1,441 annually.

Source: Texas Water Development Board

Bu Build ildin ing Per ermits ts in in Nue Nueces s Cou County

500 1000 1500 2000 2500 3000 3500 4000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Number of Permits Single family units Multifamily units

Source: U.S. Census Bureau

Sin Singl gle-Family Med edia ian Lot Lot Siz Size e Fairly irly Cons Constant

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 YEAR BUILT

Median Lot Size (SF) by Year Built

Source: Nueces County Appraisal District

Incr Increase e in in Sin Single gle-Famil ily Med edian ian Liv Livin ing Ar Area ea

• 500

1,000 1,500 2,000 2,500

YEAR BUILT

Median Living Area (SF) by Year Built

Source: Nueces County Appraisal District

What t Does Does Th This is Mea ean?

• Median Single-family Lot Size – Since 1992

builders have reduced median lot by 1,121 SF

• 1992: 7,983 SF
• 2016: 6,862 SF (-14.0%)
• Median Single-family Living Area – Since 1992

builders have increased median living area by 206 SF

• 1992: 1,746 SF
• 2016: 1,952 SF (11.8%)
• To supply affordable housing, builders may have

to reduce lot size or living area.

• V. Housing & Neighborhood Quality

Bu But t Wait! it!

• Thus far, we have ignored housing and

neighborhood quality.

• However, just because a home is affordable does

not mean that it is of adequate quality or that it is located in a neighborhood with access to good schools, jobs, healthcare, amenities, etc.

• Housing and neighborhood quality is more likely

to be an issue for lower-income households.

Why Is Is Th This is Topic Imp Important? t?

• Place matters: the neighborhood in which a

household resides significantly effects the

• pportunities and life outcomes of that household.
• Homeownership in high-quality neighborhoods,

which offer households access to better schools, jobs, health care, and amenities and reduces exposure to crime, is more likely to enhance the opportunities and life outcomes of that household.

• However, low-income households are less likely to be

able to afford homeownership in high-quality neighborhoods.

Neig Neighborh rhood Matter ers

Limited financial resources, lower educational status Faces lower access to good schools, jobs, and health care; higher exposure to crime Resides in a neighborhood

• f poor

quality

Low- income household

Resides in a high-quality neighborhood Faces greater access to good schools, jobs, and health care; lower exposure to crime Fewer

• pportunities

for upward mobility; lower household

• utcomes

More

• pportunities

for upward mobility; improved household

• utcomes

Ag Age e of Own Owner er-Occupied Housing

Source: Nueces County Appraisal District

Ag Age e of Own Owner er-Occupied Housing

Source: Nueces County Appraisal District

Travis s Cou County - La Land Valu lue & Loc Location

$0 $20 $40 $60 $80 $100 $120 $140 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0

MEDIAN IMPROVEMENT VALUE PSF MEDIAN LAND VALUE PSF

Single Family 2017 Appraised Value By Year Built

Median Land Value PSF Median Improvement Value PSF

Travis s Cou County - La Land Valu lue & Loc Location

Single Family Land >= $25 PSF

Single Family Land < $7 PSF

Nue Nueces s Cou County - La Land Valu lue & Loc Location

$0 $20 $40 $60 $80 $100 $120 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0

MEDIAN IMPROVEMENT VALUE PSF MEDIAN LAND VALUE PSF

Single Family 2017 Appraised Value By Year Built

Median Land Value PSF Median Improvement Value PSF

Nue Nueces s Cou County - La Land Valu lue & Loc Location

Single Family Land >= $4 PSF Single Family Land < $3 PSF

Su Summary ry

• Gentrification makes housing unaffordable for

longtime residents with lower income

• In Corpus Christi:
• Higher value homes are located next to water or in the

suburbs.

• Lower value homes are located near downtown close

to the most jobs

• Increasing the housing quality and access to
• pportunities (i.e., good schools, jobs, healthcare)
• f homes close to downtown could improve

household outcomes for low-income households.

• VI. Conclusion

Fin Final l Tho Thoughts

• Huge strain on housing affordability for the lowest

income cohort (extremely low income families).

• Declines in the construction of new single-family

homes affordable to the lowest-income cohort will worsen affordability.

• Highest priced homes are in the suburbs.
• Final thought: how can we increase the supply of

affordable housing while enhancing neighborhood quality?

Thank you!