Chattanooga Organized for Action released to the public today an updated study presented to the City Council on the status of the growing affordable housing crisis. The study, which looked at area figures for the city’s urban core, found that one out of every two households are considered “housing burdened” by Federal Government (HUD) standards, meaning they are paying more than 30% of their income to the rent or mortgage. Out of that number, one out of every four renters are considered “severely burdened”, meaning they are paying more than 50% of their income to the rent.
“The lack of affordable housing is at crisis levels,” said Perrin Lance, co-founder of COA.
“When families are forced to choose between paying the rent or saving for our children’s college, that weighs down both our personal future and thwarts the potential of our city”.
Among the findings were included:
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Chattanooga lacks 5,774 affordable rental units for those households with incomes below $20,000. This does not include the anticipated loss of 1,000 units of affordable housing for extremely low-income people that would result from the planned closure of College Hill and East Lake Courts, the city's largest two remaining public housing communities; nor does this include the estimated 29% population increase expected to hit Hamilton County by 2055.
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The housing burden is felt unevenly across the city. While the median gross rent as a percentage of household income for the entire urban core is slightly moderate at 35.1%, this burden is not equally shared across the urban core. Some areas such as Census Tract 31 representing the downtown area have the median percentage at 28.5%, or mostly affordable on average. However, many areas of our city experience dramatically high rental costs.
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The housing burden is shifted to Chattanooga’s African-American community. Out of a total of 11 Black-majority Census tract districts, only two tracts had a median gross percentage at affordability standards (rent less than 30% income). The Census Tract representing the Westside (CT-16) also qualifies at 32%, but it is approximately 100% public/subsidized housing. Two tracts (CT 12 Churchville, CT 14 Oak Grove), have a median percentage at 50%. CT 26-East Lake Courts area is at 47.7%. Three others , CT 11-Orchard Knob, CT 13-Ridgedale, CT 19-Alton Park, have figures in high thirties (38.0%+).
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Chattanooga’s white majority census tracts are experiencing housing affordability issues, but to a far lesser degree than their black counterparts. Only one white-majority community, CT 24-Cedar Hill, had a median gross rent percentage higher than 40% (at 43.55%), while two tracts (#7 and # 31 representing Lupton City and Downtown) have percentage figures lower than 30% (22.0% and 28.5% respectively). Four others remain close to affordability by ranging between 30% to 35%.
The study combines the efforts of the 2012 Regional Planning Agency’s “Chattanooga Housing Study” and the 2012 Westside Community Association’s “Affordable Housing Report” with updated data from the 2013 5-Year Estimates of the American Community Survey.
“As federal aid for local affordable housing efforts dwindles, cities must be prepared to take bold action to address the housing crisis at their doorsteps,” said Mr. Lance. “Greater coordination and an openness to all available strategies must be pursued.”
The full document can be viewed at www.chattaction.org.
Questions and requests for presentations can be emailed to info@chattaction.org