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Now that we have a better understanding of the relationship between the construction of new homes and housing affordability on a national scale, it’s time to take a look at this relationship on a state level.
New York
First up, we take a look at New York. Over the next few weeks, we’ll also be analyzing California, Washington, and Texas housing trends in an effort to understand more about how we can continue to build vibrant housing across the U.S.
In New York state, the share of overall construction specifically earmarked for low- and middle-income Americans has dramatically decreased from 1995 to 2017. For instance, while 51% of all new homes placed in service for the year of 1995 were funded via LIHTC, this figure drops down to 3.5% in 2017.
This suggests that while New York continues to increase overall construction, very few of these new homes remain affordable for lower income residents of the state.
Over time
From 1995 to 2017, the number of housing starts in New York increased by a whopping 456%. However, the number of homes financed via LIHTC declined by 81%. This suggests that while the supply of housing in the Empire State has increased during the past couple decades, this new construction has done little to address the affordability crisis facing the state.
The following chart indicates the number of housing starts and LIHTC financed units from 1995 to 2017 for the state of New York.
Evidently, both the absolute number of low-income units and the proportion of new construction that is designated affordable housing have fallen significantly in New York.
Across the nation
Next week, we’ll take a look at the relationship between housing starts and low-income construction in California. By looking at this relationship in individual states, we can begin to dissect the extent to which the affordable housing crisis facing the US is rooted in federal vs. state policies.
