Over 200,000 Affordable Housing Units Disappear in Metro Atlanta

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Aerial view of Atlanta showing affordable housing units contrasted with luxury apartments.

News Summary

Metro Atlanta has lost more than 200,000 affordable housing units between 2018 and 2023, creating a significant affordability crisis across the region. With the population projected to grow by 1.8 million by 2050, local governments are considering tailored solutions to combat rising housing costs. Efforts are underway, including new developments and streamlined permitting processes, but many residents continue to struggle with high rental costs. Current initiatives seek to address the shortages with plans for new affordable housing projects in the coming years.

More Than 200,000 Affordable Housing Units Lost in Metro Atlanta Over Five Years

In a troubling trend for the metropolitan area, Atlanta has witnessed the loss of over 200,000 affordable housing units between 2018 and 2023, as reported by the Atlanta Regional Commission (ARC). This significant decline has raised alarms about the increasing challenges related to housing affordability that many residents are now facing.

Affordability Crisis Affects Entire Metro Area

The issue of housing affordability is not restricted to Atlanta alone; all cities within the 11-county metro area are grappling with similar difficulties. Despite a growing population, wages for the average worker have remained stagnant, failing to keep pace with the sharp rise in housing prices. The ARC predicts an influx of an additional 1.8 million people into the metro area by 2050, further intensifying the demand for housing.

Staggering Loss of Affordable Rentals

During the specified period from 2018 to 2023, the metro area saw the disappearance of 232,349 affordable rental units renting for $1,500 or less. Breaking this down, of the lost units, 54,241 rented for $800 or less, while an alarming 178,108 had rental prices ranging from $800 to $1,500. Ironically, the region simultaneously gained 258,081 rental units priced at $1,500 and above, exacerbating the affordability crisis.

Need for Tailored Solutions

The complexity of the housing crisis necessitates customized solutions for different communities, as there is no one-size-fits-all answer to this growing problem. Suggested interventions include simplifying permitting processes to allow for more efficient development and enhancing financing options for new housing projects.

Commitments to Affordable Housing

In efforts to tackle the crisis, Atlanta’s local government has set ambitious goals, including a plan to create or preserve 20,000 affordable housing units by 2030. Meanwhile, Gwinnett County is utilizing federal COVID relief funds to establish an affordable housing development fund aimed at assisting households earning up to 65% of the area median income.

Additionally, DeKalb County is streamlining its permitting process to expedite housing development projects. However, the financial implications of the lost affordable housing units are significant, particularly with the rising costs of homeownership paired with stagnant income levels.

Rent Burden on Residents

Currently, nearly 1 in 3 Atlanta renters are spending over half of their income on housing, a troubling situation that raises concerns about long-term sustainability for families. The situation could grow even more precarious as the federal government freezes certain funding programs, further restraining local governments’ capabilities to address affordable housing needs.

Innovative Solutions on the Horizon

Amidst these challenges, Gwinnett County has taken steps to secure affordable housing by purchasing the former Springswallow extended-stay hotel for $7.7 million, with the intent to convert it into affordable housing for young adults exiting the foster care system and seniors. This initiative is expected to offer rental prices ranging from $600 to $1,200.

The Gwinnett Housing Corporation plans to commence renovations in roughly three months, with leasing anticipated to begin around the same time next year. These efforts reflect a growing determination among local governments and organizations to find actionable solutions to the ongoing housing affordability crisis in Metro Atlanta.