2015 New York City. Housing Security Profile and Affordable Housing Gap Analysis

Transcription

1 2015 New York City Housing Security Profile and Affordable Housing Gap Analysis 1

2 Contents: Housing Insecurity in New York City 3 A City of Renters. 6 Where the Housing Insecure Population Lives 16 Housing Insecurity Households and Rent Regulation...19 Affordable Housing Supply and Demand..31 2

3 Housing Insecurity in New York City 3

4 The Growing Housing Insecurity Crisis Across the U.S. 19 million low-income households are housing insecure, including: 630,000 homeless persons 10.9 million renter households paying more than half of their monthly income on housing 7.5 million homeowner households paying more than half of their monthly income on housing 4

5 The Growing Housing Insecurity Crisis In New York City 942,553 total low-income households are housing insecure, including: 64,060 homeless persons* 675,716 renter households paying more than half of their monthly income on housing** 202,777 homeowner households paying more than half of their monthly income on housing *Information on homelessness is based on the local Continuum of Care geography, rather than the City or Region. **Rental housing units occupied rent free are excluded from cost burden calculation, and households with zero or negative income are assumed to severely cost burdened Source: Enterprise Tabulation of 2014 New York City Housing and Vacancy (NYCHVS) Data 5

6 A City of Renters 6

7 A City of Renters New York City is home to more than 2 million renter households. Of these, nearly 640,000 renter households are low-income, and pay more than half of what they earn on rent. 7

8 City of Renters More than 2 million Households in NYC are Renters 981,565 2,166,502 Owner Occupied Renter Occupied Percent change in Renter households ( ) +7% A significant majority of housing units in New York City are occupied by renter households (nearly 69 percent in 2014). Homeowners occupied about 30 percent of the housing stock, however the homeownership rate remains lower than it did during pre-recession highs. Percent change in Owner households ( ) -2% Source: U.S. Census Bureau, 2005, 2014 American Community Survey 8

9 Renter Population in NYC vs. Select Cities New York Los Angeles Chicago Philadelphia San Francisco Boston Washington, DC Seattle Denver Baltimore Compared to other cities, NYC has by far the largest number of renter households Renters Owners Thousands Los Angeles + Chicago Philadelphia San Francisco Boston NYC In 2014, the number of renter households in NYC approximately equaled the total number of renter households in the next five largest cities in Enterprise markets. Source: U.S. Census Bureau, 2014 American Community Survey 1-Year Estimates 9

10 Household Income Definitions HUD Defined Income Limits in New York City 1-Person Household 2-Person Household 3-Person Household 4-Person Household Extremely Low-Income (0-30% of AMI) (ELI) $18,050 $20,600 $23,200 $25,750 Very Low-Income (31-50% of AMI) (VLI) $30,100 $34,400 $38,700 $42,950 Low Income (51-80% of AMI) (LI) $48,100 $55,000 $61,850 $68,700 Moderate Income (81-120% of AMI) (MI) $72,156 $82,464 $92,772 $103,080 High Income (> 120% AMI) (HI) > $ 72,156 > $ 82,464 > $ 92,772 > $ 103,080 HUD defines income limits for federal programs by calculating the Area Median Income (AMI) for households of various sizes. In New York City, an Extremely Low-Income (ELI) family of four would earn less than $25,750 in Source: HUD 2013 Income Limits 10

11 Renter Households by Area Median Income (AMI) Renter Households by Area Median Income (AMI) 575, , , , ,072 ELI (0-30% AMI) VLI (31-50% AMI) LI (51-80% AMI) MI (81-120% AMI) HI (>120% AMI) The majority of renters in New York City are either extremely lowincome (ELI) or high income (HI). These households account for 27 and 24 percent of all renter households, respectively. Source: Enterprise Tabulation of 2014 New York City Housing and Vacancy (NYCHVS) Data 11

12 Housing Insecure Population in NYC vs. Select Cities Low-Income Renter Households with Severe Housing Cost Burden in Selected Cities (2013) New York City Los Angeles Chicago Philadelphia Detroit San Francisco Boston Washington Baltimore Denver Miami Seattle Cleveland New Orleans Oakland Rochester in thousands In 2013, 48.1 percent of low-income renters in New York City were severely housing cost burdened. Source Enterprise Tabulation of American Community (ACS) Public Use Micro Sample (PUMS) Data 12

13 Demographics of Housing Insecurity in NYC Renter Households with Severe Housing Cost Burden by Family Type Married Couples without Children 9% Married Couples with Children 13% Single-Parent Households 20% Unmarried / Single- Person Households 57% In 2014, the majority (387,703) of severely cost-burdened lowincome renters in New York City were single-person households. Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) 2014 Data 13

14 Demographics of Housing Insecurity in NYC Severely Housing Cost Burdened Renter Households by Race and Ethnicity Hispanic, any race 36.0% White, non-hispanic 29.0% Black or African American, non-hispanic 23.0% Asian, non-hispanic 11.0% Other (including multiple races), non- Hispanic 1.0% 0.0% 10.0% 20.0% 30.0% 40.0% Hispanic households are disproportionately low-income and cost burdened this group makes up only 29.3 percent of the NYC renter population, but represents 36 percent of housing insecure households in New York City. The share of Hispanic housing insecure households has increased 3 percent between 2011 and Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) Data 14

15 Percentage Change Wages vs. Rents 10% Percentage Change in Median Gross Rent and Median Renter Household Income (In 2013$), New York City 8% 6% 4% 2% 0% -2% % -6% -8% Median Gross Rent Median Renter Household Income In the 1990 s, median rent moved in tandem with changes in renter income. However, beginning in the 2000s, rents continued to rise while renter incomes plummeted. Between 2011 and 2014, household income grew modestly (1%) while rents continued to grow at a rate of 4 percent. Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) Data 15

16 Where the Housing Insecure Population Lives 16

17 Where does the housing insecure population live? Percent of Low-Income Renter Households with Severe Housing Cost Burden In 2014, more than half of all low-income renters were severely costburdened in 39 of 55 subborough areas. For example, in the Upper East Side, of the total 17,839 low-income renters, nearly 81 percent (14,418) were severely housing cost-burdened. 63% - 81% 55% - 62% 49% - 54% 44% - 48% 33% - 43% Parks and Airports Miles Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) Data 17

18 Housing Insecure Households and Rent Regulation 18

19 Rent Regulation in New York City New York City has a complex housing landscape, with a variety of different tenant protections, supports and forms of rental assistance. The largest, by far, is rent stabilization, although this program does not guarantee affordability and has been shifting away from helping the neediest. Between 2011 and 2014, the number of rent stabilized units occupied by lowincome households dropped by 78,

20 Rent Regulation in NYC Stabilized Units 1,008,096 Market Rate Units 801,203 All Rent Regulated Units 1,307,635 Public housing 184,853 * Other Regulated Units include HUD-regulated, In Rem, Article 4, Loft Board, and Municipal Loan units Mitchell Lama 45,312 All other Regulated Units* 42,335 Rent Controlled Units 27,039 Of the nearly 2.1 million rental units in New York City, 62 percent are under rent regulation. The vast majority of these regulated units are rent stabilized which protects tenants from sharp rent increases, but does not require an income test or guarantee affordability. Source: Enterprise Tabulation of 2014 New York City Housing and Vacancy (NYCHVS) Data 20

21 Thousands of Units Recent Gains in Rent Stabilized Units 1,030 1,020 1,010 1, Number of Stabilized Units Over Time After dropping significantly after the recession, the city is again gaining rent stabilized units. Between 2011 and 2014, the number of rent stabilized units grew by 5 percent, or by 47,382 units. However, a portion of this growth may be due to changes in how stabilized units are identified and counted. Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) Data 21

22 Decrease in Stablized Units for the Lowest Income Families Change in Number of Stabilized Rental Units By Affordability, >120 % AMI % AMI 51-80% AMI 31-50% AMI 0-30% AMI 47,405 99, ,030 81,478 35,844 33, , , , , , , , , , Although the number of stabilized rental units increased overall from 2011 to 2014, the number of these units serving the neediest households decreased. In 2014, there were 44,578 fewer stabilized units affordable to low-income households (earning 51-80% of AMI) and 31,552 fewer stabilized units affordable to very low-income households (earning 31-50% of AMI). Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) Data 22

23 Where Stabilized Units Were Lost or Gained Gained Low Income Units Gained 100 to 999 Low Income Units Lost 100 to 999 Low Income Units Lost 1000 to 2999 Low Income Units Lost Low Income Units Parks and Airports Miles Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) Data 23

24 Rental Assistance in New York City In addition to rent regulation programs, tenants in New York City may receive rent assistance from a variety of local, state and federal programs, such as Section 8 or state assistance for seniors in rent regulated apartments. However, more than half of extremely lowincome renters in New York City receive no rent assistance. 24

25 Housing Insecure Population in New York City Severely Cost Burdened Low-Income Renter Households With and Without Rent Subsidy 298, , ,663 49,849 32,007 2,966 ELI (0-30% AMI) VLI (31-50% AMI) LI (51-80% AMI) Without Rental Assistance With Rental Assistance More than 50 percent of severely housing cost burdened ELI renter households did not receive any rental subsidy in Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) Data 25

26 Affordable Housing Supply and Demand 26

27 Affordable Housing Supply and Demand By any measure, the demand for affordable housing in New York City outstrips supply even on the rent regulated market. Low-income households are squeezed even further by competition from higherincome households for the cheapest units. The acute shortage forces the majority of lower income households in housing that costs beyond their means. 27

28 Affordability at Each Income Level 1,400,000 1,200,000 1,288,186 1,202,807 1,000, , , , , , , , , AMI 0-50 AMI 0-80 AMI Renter Households Affordable Rental Units at that Income Level Large numbers of low-income renters must compete for a limited supply of units affordable to them and many of those units are in fact occupied by higher income households. For example, of the 1.2M units that would be considered affordable to a household at or below 80 percent of AMI, at least 275,766 of those units were occupied by higher income households in Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) Data 28

29 Affordability Mismatch Rental Unit Affordability versus Renter Incomes in the Regulated Market Rental Units by Affordability Renter Households by Income ,000 1,200 1,400 Thousands ELI (0-30%AMI) VLI (31-50% AMI) LI (51-80% AMI) MI (81-120% AMI) HI (>120% AMI) Rental Unit Affordability versus Renter Incomes in the Unregulated Market Rental Units by Affordability Renter Households by Income Thousands ELI (0-30%AMI) VLI (31-50% AMI) LI (51-80% AMI) MI (81-120% AMI) HI (>120% AMI) Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) Data 29

30 No Neighborhood in NYC had Enough Affordable Rental Units to Serve all VLI (0-50% AMI) Households in 2014 Deficit of Affordable Rental Units to Very Low-Income (0-50%) Renter Households In 2014, very lowincome renters outnumbered affordable rental units in every neighborhood in the city. The deficit ranged from 21,867 units in University Heights/Fordham to 974 units in Park Slope/Carroll Gardens. More than (18,000) (18,000) to (13,000) (13,000) to (9,000) (9,000) to (5,000) Less than (5,000) Parks and Airports Miles Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) Data 30

31 What Units Do Extremely Low-Income Renters Actually Occupy? When households cannot find affordable housing, many must live in units well above their affordability range. In 2014, nearly 80 percent of extremely low-income (0-30% AMI) renter households lived in units that cost more than 30 percent of their entire income. Nearly 77 percent of very low-income (31-50% AMI) renter households, and 33 percent of low-income (51-80% AMI) renter households also lived in units above their affordability range. Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) Data 31

32 More Low-Income Households Living in Units They Cannot Afford Low-Income Renter Households Living in Unaffordable Units ( ) 63% 56% 69% 64% 73% 65% 72% 71% 63% 59% 73% 73% 69% 67% 80% 73% 79% 77% 29% 29% 33% 24% 23% 23% 18% 17% 14% ELI VLI LI The share of low-income renters that cannot afford their apartments has been growing over the past 25 years as the city s affordable housing squeeze has worsened. Source: Enterprise Tabulation of New York City Housing and Vacancy (NYCHVS) Data 32

33 Conclusion Of 2 million renter households in New York City, nearly 640,000 are low-income and severely cost-burdened. There is not a single neighborhood in NYC that provides enough affordable housing to match the number of very low-income households in that community. Both the regulated and unregulated rental housing markets of NYC are not meeting the affordable housing needs of low-income renters. Even though the market added rent stabilized units between 2011 and 2014, the stock affordable to lower income families declined. Competition exacerbates the gap between the number affordable units and the number of low-income renters, forcing many to pay beyond their means. 33