![]() ![]() Alleviating homelessness requires increasing awareness of currently available resources for PEH and expanding relief funds to assist residents with affordable housing, healthcare support, training for employment, and other resources critical to reducing homelessness. Local government and policy makers can expand resources and consider policies that support public- and private-sector initiatives to improve homeownership rates, assist with rental affordability, and reduce the risk of homelessness. Promising cost-reduction opportunities include simplifying the permit process and engaging builders with expertise in cost-effective construction methods. Public–private collaboration on policies can identify land available for housing either as underused property or as part of broader rezoning efforts to increase the supply of homes, which is a requirement for sustained economic growth. Tap into existing housing capacity potential.Specifically, we have identified four priority interventions designed to work in concert to increase housing stock, keep rents affordable, and help more people, including historically marginalized populations, access the housing market: Without an increase in the supply of housing, Columbus may struggle to continue on a growth trajectory. 8 Vogt Strategic Insights, “Analysis of housing need for the Columbus region,” Building Industry Association of Central Ohio, August 30, 2022. Today, Columbus is projected to have a shortage of as much as 110,000 housing units by 2032. ![]() 7 “Rental burdens: Rethinking affordability measures,” PD&R Edge, accessed June 22, 2023.Īs in many regions in the United States, the primary contributors to the housing shortage in Columbus are embedded within deeply vexing economic and social issues, including stagnating incomes, racial gaps in homeownership, and access to financing and services.Īs Columbus charts a growth strategy for the decades ahead, addressing housing and homelessness will be an essential component in realizing the goal of prosperity for all. rendering them “severely rent burdened” as defined by the US Department of Housing and Urban Development (HUD). Renters are also facing increased pressure nationally: 23 percent spend at least half of their income on housing costs, 6 Katherine Schaeffer, “Key facts about housing affordability in the U.S.,” Pew Research Center, March 23, 2022. 5 Anna Bahney, “The US housing market is short 6.5 million homes,” CNN, March 8, 2023. and the country is estimated to have a shortage of 6.5 million housing units. In 2022, US home vacancy rates were at their lowest levels since 1987, 4 “Home vacancy rate for the United States,” US Census Bureau, retrieved from Federal Reserve Bank of St. 3 NAHBNow, “Nearly 7 out of 10 households can’t afford a new median-priced home,” blog entry by National Association of Home Builders,įebruary 15, 2022. The National Association for Home Builders estimates that about 70 percent of US households cannot afford a new home at the national median price. While many major cities are receiving national press coverage for this issue, housing insecurity is a humanitarian challenge facing communities of all sizes across the country. 2 HUD defines affordable housing as “housing on which the occupant is paying no more than 30 percent of gross income for housing costs, including utilities.” See “Glossary of terms to affordable housing,” HUD, accessed June 22, 2023.Ĭolumbus is a microcosm of the United States’ housing insecurity plight. Amid ongoing rapid growth, the need for affordable housing and support services for PEH will only continue to increase unless significant action is taken. The region’s challenges have a disproportionate impact on historically marginalized populations (such as Black and Hispanic residents), who have a dramatically lower likelihood of being a homeowner and a much higher likelihood of experiencing homelessness. Additionally, the region’s population of people experiencing homelessness (PEH) has grown faster than those of its US peers in recent years. In just this past decade, the increase in housing prices and rents has dramatically outpaced household income. This article is a collaborative effort by Brandon Carrus, Seth Myers, Brian Parro, Duwain Pinder, and Ben Safran, representing views from McKinsey’s Social Sector Practice. ![]()
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