It’s no shock the United State has a housing shortage.
The National Low-Income Housing Coalition reports that there is a deficit of 7.3 million affordable rental homes. But older homes, particularly built before 1970, may be the key to solving the crisis.
Donovan Rypkema, housing expert and president of Heritage Strategies International, lectured about preserving older homes to maintain affordability at UNC Charlotte’s Center City campus last month.
“Older and historic buildings are the solution, not the problem,” he said. “We are systematically tearing down what’s affordable and building what’s not.”
Demolition of older housing has outpaced new construction, Rypkema said, adding that nearly half of all renter households in America are cost-burdened – defined by spending over 30% of their income on housing alone – consistent with data from the Census Bureau. To add, 26% of households are severely cost-burdened (11.8 million households).
“Ten times the population of all of Mecklenburg County,” he said.
According to the North Carolina Housing Coalition, 32% of all households in Mecklenburg County are cost burdened. In addition, 73% of all low-income households receive no housing assistance.
Though rent and housing prices have risen, incomes have not kept pace with a median home price of $433,100 compared to 74,600 household income. Since 1987, household income has risen 105% compared to 275% for housing costs.
“We can’t have these two lines separated and not expect to have a severe housing crisis,” Rypkema said.
Projected for the next 10 years, 6 million new jobs will be created, but 1/3 of those job swill be in the service industry, with only $23,000 median salary. That allows for only $600 monthly expense on housing alone.
As prices rise, demand falls and vice-versa. However, that’s not what is happening, Rypkema said.
“This isn’t a Marxist, socialist thing,” Rypkema said. “This is market failure,” adding there must be some government intervention.
Myths about historic housing are that they’re too small, not what buyers want, or worth renovating.
Ninety percent of housing built before 1970 is deemed adequate housing; and the repairs that most other homes need are for water-damaged roofs. By income and demographics, the people living in these cheaper, older homes are Black, Hispanic, women, elderly and disabled people. Right now, there are about 5 million housing units built before 1970 that are vacant.
Data shows that these homes would suit first-time home buyers, young families, and empty-nesters. The National Association of Realtors reports that most new homebuyers are millennials (37%), and 57% of first-time buyers bought homes built before 1950.
Historic preservation can save these homes – 94% of pre-1970 housing has no historic protection. Historic preservation can be leveraged to fight displacement, especially amongst historically marginalized communities.
