3 ways to best use HUD’s new housing affordability data

A great blog post about how best use HUD’s new data on housing affordability:

Three Ways to Use Data from the Location Affordability Portal to Inform Policy and Practice:

1. Understand the “complete costs of place” of a proposed affordable housing development. If we really want to deliver housing that is affordable, we need to focus not only on the costs of rent or a mortgage, but also on the costs of heating / cooling the home and getting to and from work and around town—collectively, the “complete costs of place.”  A home that offers low housing costs but requires residents to spend all the savings on higher transportation costs is no bargain.  While cost is not the only relevant factor in siting affordable housing (see below), it is an important one, and developers can increase the odds that a home with low housing costs is truly affordable by using the Location Affordability Portal to estimate a site’s transportation costs and factoring that into an estimate of the complete costs of place.

2. Target transportation investments to places with low housing costs but high transportation costs. There are two main ways of ensuring that the combined costs of housing and transportation are affordable to low- and moderate-income households: reduce the housing costs of places where transportation costs are already low (see item No. 1 above) or reduce the transportation costs of places where housing costs are already low. The Location Affordability Portal can help communities identify places where transportation investments—such as car sharing, improved commuter bus service, and improved pedestrian infrastructure—are needed to help improve affordability for low- and moderate-income households that have relatively affordable housing costs but high transportation costs.

3. Compare communities and regions. Sometimes policymakers, advocates or researchers find it useful to compare housing costs across regions—for example, to identify places with policies we may wish to emulate. If these analyses consider only housing costs but ignore transportation costs, they may well give us distorted results.  For example, in an analysis of the housing and transportation costs of the 25 largest metro areas, we found that Houston had the eighth most affordable housing costs (as a percentage of income).  But when we considered housing and transportation costs together, Houston dropped to 17th, making it one of the less affordable regions.  The Location Affordability Portal provides useful metrics for comparing the combined costs of housing and transportation costs across jurisdictions.

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