EXISTING CONDITIONS: HOUSING
HOUSING AFFORDABILITY PLAN | Town of Wake Forest
Barriers to Housing Affordability
Wake Forest faces a set of key barriers to addressing long-term housing affordability. This Plan presents a range of strategies and tools to address these barriers. Competition with Higher Income Households As of 2021, the four most common jobs in Wake Forest paid wages below $76,000, which is the Raleigh Metro Area's median income for a household of four, according to the U.S. Department of Housing and Urban Development. Meanwhile, the four fastest growing occupation sectors in the region earn more than the average current wage in Wake Forest. Higher income households moving in to Wake Forest can bid up the costs of existing housing when supply is not keeping up with demand, which makes it difficult for moderate and low-income households to compete. Limited Affordable Housing Options Despite growth in housing inventory, Wake Forest’s supply of housing has not kept pace with demand at diverse price points. The Town is losing affordable entry- point homes, or “starter homes”, for new owners, which often include young families. Adding to this issue, new housing production has been almost entirely market-rate, serving new renters and owners with higher incomes. Wake Forest has 1,641 existing subsidized rental housing units to serve low-income households, according to the
National Housing Preservation Database. The inventory of affordable housing units is generally older in Wake Forest (Figure 37). Crenshaw Trace, a 36-unit, income- restricted property for seniors, was completed in late 2021 and is the first subsidized development added since 2016. Development Barriers The central cost drivers for new housing is construction costs, including the cost of land. The costs to build housing have continued to rise at a quicker pace in the Triangle than most regions nationally. Rising housing costs pose a challenge for households on fixed incomes, such as seniors or single-parent households. The Town does not currently offer specific, clearly defined incentives or requirements for developers who are interested in including affordable units in their developments, which means that the Town may miss opportunities to increase the affordable housing inventory through new development. Additionally, market demand for certain amenities, such as parking, increase the cost to build housing, which is largely unavoidable in a town that has limited public transit options.
THE TAKEAWAY
Competition with higher income households, limited housing supply, and hindrances to development are key barriers to affordable housing.
FIGURE 37: EXISTING AFFORDABLE RENTAL HOUSING SITES IN WAKE FOREST
755 S White Street "Turnberry Apartments" Section 8 vouchers 40 units built in 1996
1887 S Franklin Street "Huntington Spring" 9% Low Income Tax Credits 86 units built in 2016
1950 Branch River Way "Heritage Crossings" 4% Low Income Tax Credits 120 units built in 2005
Source: National Housing Preservation Database (NHPD)
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