DRAFT Morrisville Affordable Housing Plan, September 23, 2019 version

DRAFT SEPTEMBER 23, 2019

Break Even Rent for a New Unit $1,300

T H E T A K E A W A Y

New construction is only affordable at the top of the market—owner households earning at least $100,000 and renter households earning at least $50,000. The private sector housing production system cannot create units for incomes below that level without significant subsidy. As the top of the market leaves older units behind, and they decrease in value or price, they filter down to lower earning households. Rental demand is often met with ownership units that convert to rental as they age.

$800 $500 Monthly Rental Gap Monthly Rent Affordable to Households Earning $20,000

Source: czbLLC.

How does filtering work? As new units are built and satisfy demand at the top of the market, older housing...

becomes more affordable.

ownership may convert to rental.

becomes less desirable.

HOUSING OVER TIME

Affordable Housing Plan for Morrisville, NC | 2019

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