Affordable housing has a long history of going up in low-income neighborhoods, concentrating those developments in areas with fewer resources. But new research shows that today's affordable housing policies are driving more affordable housing into desirable high-quality neighborhoods.
Affordable housing trends are fast changing as developers receive incentives and tax credits to build affordable housing units for low-income Americans within nicer, less racially and financially segregated neighborhoods.
In studying affordable housing units within 125 U.S. markets, Yardi Matrix found roughly two-thirds (or 58%) of those units are within partially affordable apartments in nice neighborhoods — meaning landlords have both market-rate and affordable apartments available within these buildings.
Yardi Matrix and RentCafé used A-D letter grade rankings (A represents really high-quality neighborhoods and D represents poor-quality neighborhoods) to rate the quality of the neighborhoods where these affordable units are being built. The rankings take into account access to higher-quality schools, decent job opportunities, aesthetically pleasing and well-kept properties, proximity to shopping and entertainment facilities, crime risk and median household income.
Below are 10 markets that provide affordable housing units in more desirable, high-quality neighborhoods. Affordable housing is broken into whether it is in a partially affordable building, one that is fully affordable or partially affordable buildings under construction within different types of neighborhoods.
1. Seattle
Partially Affordable
A/B Rated Neighborhoods: 96%
B/C Rated Neighborhoods: 4%
Fully Affordable
A/B Rated Neighborhoods: 89%
B/C Rated Neighborhoods: 11%
Partially Affordable Under Construction
A-Rated Neighborhoods: 3%
B-Rated Neighborhoods: 97%
C-Rated Neighborhoods: 0%
2. Washington, DC
Partially Affordable
A/B Rated Neighborhoods: 95%
B/C Rated Neighborhoods: 5%
Fully Affordable
A/B Rated Neighborhoods: 81%
B/C Rated Neighborhoods: 19%
Partially Affordable Under Construction
A-Rated Neighborhoods: 43%
B-Rated Neighborhoods: 57%
C-Rated Neighborhoods: 0%
3. Riverside
Partially Affordable
A/B Rated Neighborhoods: 91%
B/C Rated Neighborhoods: 9%
Fully Affordable
A/B Rated Neighborhoods: 52%
B/C Rated Neighborhoods: 48%
Partially Affordable Under Construction
A-Rated Neighborhoods: NA
B-Rated Neighborhoods: NA
C-Rated Neighborhoods: NA
4. San Diego
Partially Affordable
A/B Rated Neighborhoods: 89%
B/C Rated Neighborhoods: 11%
Fully Affordable
A/B Rated Neighborhoods: 53%
B/C Rated Neighborhoods: 47%
Partially Affordable Under Construction
A-Rated Neighborhoods: 53%
B-Rated Neighborhoods: 47%
C-Rated Neighborhoods: 0%
5. San Francisco
Partially Affordable
A/B Rated Neighborhoods: 86%
B/C Rated Neighborhoods: 14%
Fully Affordable
A/B Rated Neighborhoods: 59%
B/C Rated Neighborhoods: 41%
Partially Affordable Under Construction
A-Rated Neighborhoods: 44%
B-Rated Neighborhoods: 47%
C-Rated Neighborhoods: 9%
6. Los Angeles
Partially Affordable
A/B Rated Neighborhoods: 86%
B/C Rated Neighborhoods: 14%
Fully Affordable
A/B Rated Neighborhoods: 47%
B/C Rated Neighborhoods: 53%
Partially Affordable Under Construction
A-Rated Neighborhoods: 26%
B- Rated Neighborhoods: 62%
C-Rated Neighborhoods: 12%
7. Boston
Partially Affordable
A/B Rated Neighborhoods: 84%
B/C Rated Neighborhoods: 16%
Fully Affordable
A/B Rated Neighborhoods: 68%
B/C Rated Neighborhoods: 32%
Partially Affordable Under Construction
A-Rated Neighborhoods: 37%
B-Rated Neighborhoods: 53%
C-Rated Neighborhoods: 10%
8. Denver
Partially Affordable
A/B Rated Neighborhoods: 79%
B/C Rated Neighborhoods: 21%
Fully Affordable
A/B Rated Neighborhoods: 49%
B/C Rated Neighborhoods: 51%
Partially Affordable Under Construction
A-Rated Neighborhoods: 100%
B-Rated Neighborhoods: 0%
C-Rated Neighborhoods: 0%
9. Minneapolis
Partially Affordable
A/B Rated Neighborhoods: 64%
B/C Rated Neighborhoods: 36%
Fully Affordable
A/B Rated Neighborhoods: 49%
B/C Rated Neighborhoods: 51%
Partially Affordable Under Construction
A-Rated Neighborhoods: 0%
B-Rated Neighborhoods: 100%
C-Rated Neighborhoods: 0%
10. Houston
Partially Affordable
A/B Rated Neighborhoods: 62%
B/C Rated Neighborhoods: 38%
Fully Affordable
A/B Rated Neighborhoods: 62%
B/C Rated Neighborhoods: 38%
Partially Affordable Under Construction
A-Rated Neighborhoods: 22%
B- Rated Neighborhoods: 48%
C-Rated Neighborhoods: 30%
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