In all likelihood, next year Alexandria's housing stock will reach a important, albeit largely psychological, milestone: The average single-family home in our City will be valued at $1 million.
With two-third's of Virginia homeowners' mortgage rate under 4% and another third with a rate under 3%, low supply and astronomical sales prices has made homeownership all but impossible in Alexandria for anyone but the upper-middle class.
The average 1 bedroom apartment now rents for $2,186 per month, requiring a salary of nearly $90,000 to afford renting a small apartment in our City.
If you own a home on a fixed-rate mortgage, without adult children or aging parents in your lives, it can be easy to ignore these realities and the corrosive impact on our community.
It is that benign neglect, coupled with policy inaction, that leads to a community that rapidly becomes inaccessible to the rich diversity of people who have made Alexandria their home for generations. That inaction stifles economic growth as employers hopelessly chase a workforce disappearing from our community.
For several years, Alexandria has been on a journey to expand housing production and affordability as well as address past and current barriers to equitable housing access. On Tuesday evening, the City Council and the Planning Commission will meet to formally receive the recommendations of our City staff for our ongoing Zoning For Housing initiative.
With the receipt of these proposals, we will enter a new phase of this community conversation. We have announced several opportunities for the community to provide input over the next few months, with formal public hearings on the proposals before the Planning Commission and City Council in November, followed by a final vote of the Council the last week of November. We need your voice in this discussion and I encourage your input!
Earlier this week, our City staff hosted a fall-kick-off event to update the our community on new research and the input Alexandria residents have provided to this process. You can watch the full session online.
In June, the City Council met in a joint worksession with our Planning Commission to discuss the policies we will be considering.
You can watch the entire joint worksession, including the comments from both members of Council and members of the Planning Commission. It was an interesting dialogue.
In March, the City kicked-off an acceleration of the Zoning for Housing work program. We have worked all year to engage with residents to develop a package of specific land-use proposals in these areas:
This is the most ambitious housing effort in the City's history and we want the voice of residents from throughout our community involved in this process.
You can watch my comments at the kick-off the last session, and leading into presentations from Richard and Leah Rothstein, the authors of the recently released book, "Just Action,' a follow-up to Richard Rothstein's seminal tome "The Color of Law."
All of the sessions have been recorded and are viewable online.
While this effort has a pair of motivations, a foundational acknowledgement is that for much of the 20th Century, wide swaths of Alexandria housing was off-limits to Alexandrians that were not white. That reality was enforced by a patchwork of ordinances, restrictive covenants, intimidation and lending practices that served to effectively segregate our City for generations. While de jure policies that explicitly enforced segregation were made illegal long ago, the legacy of these policies live on today. In fact, in recent years, Alexandria has grown MORE segregated. These realties are detailed in the Draft Regional Fair Housing Plan that I wrote about a few months ago.
The question before our community is what can be done about it. It was generations of intentional acts that led to our current reality. It will require intentional acts to change it.
As our City has grown more segregated, the lack of housing supply has left Alexandria inaccessible for low and moderate-income residents. It is those paired challenges that leave our City at a crossroads.
Yet, the City cannot raise and spend enough money to make an appreciable impact on this problem. The City's power to determine how land is used, our land-use authority, provides a critical tool to spur the creation and preservation of both committed affordable housing as well as market-rate housing. Said another way: building additional housing supply, whether committed as affordable housing or market-rate housing, helps address our housing affordability challenges and reverse generational impacts.
Somewhat inexplicably, local governments have been reluctant to use the single most effective tool to increase the supply of affordable housing: build more housing. The reluctance of local governments has been even more surprising giving that a supply-based approach has been the policy of the last three Presidential administrations, two Democrats and one Republican. It's the policy of our current Republican Governor. It has been the approach of the Sierra Club and the National Association of Home Builders. It has been the approach of the Brookings Institute, the Hoover Institution and even the Cato Institute.
In September of 2019, the Board of Directors of the Metropolitan Washington Council of Governments (COG) unanimously adopted new regional housing creation targets. This was the first-ever regional commitment to accelerate the development of housing supply as a means to address our affordability crisis.
These targets, while voluntary, commit the City to the creation of additional units, with most of those units committed to be affordable for low to middle income households. To ensure that this housing creation does not exacerbate existing transportation challenges, most of this new housing must be located near job centers and high-capacity transportation infrastructure.
In March of 2020, the City Council became the third jurisdiction in the region to endorse these targets.
In 2013, while adopting our Housing Master Plan, City Council had set an ambitious goal to create or preserve 2,000 affordable units by 2025. We are on track to meet this goal.
With the adoption of the new COG housing targets, the City has committed to an additional 11,500 housing units, with 4,250 as committed affordable or workforce housing.
Over the last three years, the City has achieved the preservation or creation of just about 1,000 units of committed affordable housing.
The housing non-profit HAND has begun an annual report to measure the work that each jurisdiction in the region is doing to achieve our commitments. HAND recently released the annual update of this measurement. The HAND "Housing Indication Tool" report shows that Alexandria has made significant progress, with more work to do.
While there is a broad agreement in our community about the problem and the need to focus on solutions to our affordability challenges, bringing together agreement on the correct solutions to pursue is a little more challenging.
While the City's Housing Master Plan contains a variety of tools in our housing "toolbox," the options the City has are generally limited to:
- Raising and Spending Tax Dollars: To develop and preserve housing as well as assist residents in obtaining housing.
- Using land-use policy (zoning) to create and preserve housing
There will be many opportunities for engagement throughout this process. The City will continue to seek creative partnerships, new land-use tools and innovative financing to preserve and create affordability in our City. I am pleased to see these efforts come to fruition.
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