Housing Gaps in North Carolina
Although North Carolina is making tremendous efforts to decrease disparities in access to decent and affordable housing, there’s still a long way to go. Among the approximately 4.8 million housing units in North Carolina, around 240, 000 units are classified as inadequate. In terms of affordability, only 30% of the housing units in North Carolina are classified as affordable. That means low-income people in North Carolina lack adequate housing and most of them cannot afford decent housing. According to the National Coalition for the Homeless, there are approximately 12,918 homeless people in North Carolina.
The National Low-Income Housing Coalition’s annual affordable housing report also shows that low-income households in North Carolina lack an adequate supply of affordable rental housing. A report released in 2018 demonstrated that North Carolina has around 46 affordable units available to every 100 extremely low-income renter households. Although this rate is higher than that of many other states in the US, there are still significant housing affordability gaps in North Carolina. Extremely low-income households make up more than a quarter of all renter households. These households are burdened by housing costs since they pay more than 50% of their monthly income for housing costs. Between 2017 and 2020, the number of low-cost housing units renting under $600 monthly decreased. This trend led to an increase in the number of renter households in North Carolina experiencing housing cost burden whereby they spend more than 30% of their income on housing. This is one of the factors that have contributed to housing instability and homelessness in the state.
Factors that contribute to housing gaps in North Carolina
- Overemphasis on home ownership in many parts of North Carolina
Home ownership tends to be overemphasized in many parts of North Carolina as most people view it as an effective means of building wealth and a source of security. This trend has in a way brought about negative impacts on low-income households that lack enough resources to buy a home. Although the Department of Housing and Urban Development and other government bodies give out subsidies intended to address the housing gap in North Carolina, these subsidies end up helping those with regular income. Therefore, those working in the informal sector end up being affected the most. Besides, rentals tend to be overpriced hence locking out the urban poor.
- Growth of informal settlements
There’s an emergence of substandard settlements in many cities across North Carolina due to increased rural-urban migration, economic vulnerability, weak governance when it comes to housing, marginalization, and many other factors. Generally, the increased demand for housing in North Carolina has led to the growth of substandard settlements. The solution to this problem lies in finding ways to accommodate people where they are. This can be done through upgrading substandard settlements in the state and tapping into the knowledge of housing experts in North Carolina. The government should direct housing subsidies, land loans, and housing loans to marginalized communities. With a proper strategy, all substandard settlements in North Carolina can be fully upgraded with decent housing and healthy living environments within a short span of time.
- Housing policies that contribute to housing gaps
You’ll find that most cities in North Carolina with housing problems have lands that are entangled in unending legal disputes which leave it under-utilized or even unused. Unfavorable building and land use policies often limit the creative use of land for housing purposes. The solution to this problem is to convert under-utilized land into decent and affordable housing. That’s why there’s a need for political goodwill when it comes to addressing housing gaps in North Carolina. Local governments should revise land and housing policies that will enhance the utilization of land and expand the availability of housing.
Favorable policies on land use and housing will help policymakers in North Carolina to meet the demand for decent, affordable, and secure housing for everyone while encouraging economic development and healthy environments. Addressing the housing gap in North Carolina will not only ensure everyone has access to housing, but it will also ensure cities become environmentally sustainable.
Manufactured housing as a potential solution for housing gaps
Manufactured housing is a potential solution to the affordable housing crisis in North Carolina. The cost of producing a manufactured home is lower compared to constructing a stick-built detached home due to lower on-site labor costs and many other factors that contribute to lower overall costs. The problem that exists is that policymakers in North Carolina tend to underestimate the potential of manufactured housing in alleviating the affordable housing crisis in the state. Also, there are many regulatory barriers that limit the adoption of manufactured housing in North Carolina. Even though the use of manufactured housing to address the current housing gaps is regulated according to the US Department of Housing and Urban Development, some local policies make it difficult to embrace this type of housing. In some parts of North Carolina, the use of manufactured housing is outlawed and even in places where this type of housing is allowed, manufacturers are often burdened with stringent design requirements. In other places, local ordinances restrict manufactured housing units to specific zones and there’s a deliberate effort by people with hidden interests to under zone land for manufactured housing in North Carolina.
The stringent design requirements for manufactured housing imposed by local authorities burden producers and make it difficult to comply with those requirements. For instance, the minimum roof-pitch requirements for manufactured housing make it difficult for producers to transport these housing units on major highways. In addition, manufactured housing has been perceived as low-quality housing by most people in North Carolina and this explains the popular “not in my back yard” opposition from most homeowners in the state. Luckily, manufactured housing producers have consistently improved the quality of these units in accordance with the HUD code. Furthermore, there has been considerable innovations in the manufactured housing industry over the years, so the quality of these units is completely up to par.