Years of policy changes and public financing have produced more housing in Portland, but rents and home prices remain unaffordable for about half the citys residents.
A new city report shows that most new construction approved in the last five years is reserved for low-income residents, or caters to those who can pay for high-end rental apartments and condominiums.
What isnt being built is housing for the missing middle young families looking for their first home or rental apartments for low-wage workers in the citys large food service, administration and retail sectors.
Housing is the biggest asset of most families, and that asset is more and more unachievable for most people here, said at-large Councilor Jill Duson, who chairs the City Councils housing subcommittee.
It is a vicious cycle, she added. This report is not a declaration of victory; it is an assessment of where we are in a very long race.
CONSTRUCTION DELAYS
In the last six years, the planning board has approved 2,300 new housing units. That is about 383 units a year, 100 more a year than the goal outlined in the citys 2017 comprehensive plan.
But more than half that housing has been condominiums or market-rate apartments, according to the report. The median condo sale price was $325,000 this year, according to broker Maine Home Connection. Less than a quarter is subsidized, low-income homes.
Construction of new housing also lags behind. Less than half of the housing units approved since 2014 are finished, according to the city. Only 45 new units were created in 2018, and none had been completed as of August this year.
A delay from city approval to construction is an expected part of the building cycle, said Mary Davis, the city housing director.
We recognize that it takes time; the planning board process is at the very beginning, she said.
I still see it as a positive. People are still willing to look at the possibility of building housing and putting financing together, she added. The more projects are approved, the more that will be built.
INCOME-HOUSING GAP
This is the second biennial report on Portlands housing situation. In recent years, city politics have focused on a housing crisis, including rents and home prices too expensive for many.
The median household income in Portland is about $51,800 a year, nearly half what is needed to afford the median home price of $316,000. Almost half the citys renters are paying about a third or more of their income on housing, a standard benchmark of affordability.
Rents have stabilized in recent years, according to a 2018 survey by the city. The median rent for a two-bedroom apartment in Portland was about $1,380 last year, but its more expensive in desirable neighborhoods like the East and West Ends.
The housing burden falls the hardest on office, sales and food workers, the citys three biggest employment blocks and some of the lowest-paid positions in Portland, according to the new report.
City officials have made policy changes to encourage new housing construction. Those changes include requiring new developments to build a certain number of housing units for workforce housing, amending zoning rules to boost housing construction, putting restrictions on short-term rentals and financing projects with tax breaks, federal grants and the citys housing trust fund.
Low-income housing typically means apartments and homes built with government subsidies and reserved for poor families and individuals that meet income standards. Affordable housing, on the other hand, means that costs do not exceed 30 percent of household income.
There is no silver bullet; there is not one specific thing that is going to solve the housing issues we have, Davis said. We are trying to address it from a variety of different avenues.
LAGGING WAGES
Portland has made all the right housing policy moves, said Greg Payne, director of the Maine Affordable Housing Coalition and an executive at Avesta, a low-income housing development company.
But officials face a persistent problem confronting booming cities in the U.S. and abroad, Payne said basic wages have not kept pace with soaring housing costs. Rents in the U.S. increased 13 percent from 2001 to 2018, while inflation-adjusted median wages went up just half a percent in the same time, according to the Center for Budget and Policy Priorities.
The report clearly indicates a city that is doing its best to look under every rock and nook and cranny to address the problems, he said.
I think there is that workforce issue, he added. Just the fact the jobs that are available for people dont pay an adequate wage to afford what the rents are.
Modest increases in Portlands housing inventory and complicated policy amendments arent enough for people who have nowhere to live, said Jessica Falero, co-founder of the Peoples Housing Coalition.
Falero understands there are limits to what city policy can accomplish but believes the problem is not being taken seriously enough. Portlands homeless resources are overstretched, and the region is facing a surge of homeless youth, Falero said.
I am honestly appalled by peoples lack of urgency around the lack of affordable housing in Portland, she said.
The city should be collaborating more with people who want to provide affordable housing and finding creative solutions, not focusing on the barriers to creating more homes, Falero added.
If the City Council doesnt move and doesnt realize the urgency that is here now, we are going to have more homeless youth, more people on the streets panhandling. It is going to get worse, she said.
MAKING THE NUMBERS WORK
Developers dont always set out to build luxury homes, but it is frequently the only way to finance new construction without public subsidies.
That is especially true in recent years, as a critical skilled labor shortage in Maine has sent building costs soaring.
The first thing developers try to do is build workforce housing, said Brit Vitalius, a residential real estate broker and president of the Southern Maine Landlord Association.
When that fails, what they have to choose is condos or higher-end rentals just to make the numbers work, sometimes just to prove there will be enough return to get a bank loan, he said.
Developers are looking for engagement with city government, in the form of tax breaks or other incentives, to make workforce housing projects, Vitalius added.
The report makes no conclusions or policy recommendations, but Councilor Duson favors a plan to make city-owned land available for housing development.
What is on the list for the last year is to develop a project for the city to provide city-owned land at practically nothing or at very low cost to incentivize development for affordable and mixed-income housing, she said.
They may not be the units that provide the highest economic return, but a real boost to the housing in the city.
Invalid username/password.
Please check your email to confirm and complete your registration.
Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.
Previous
Next
Read this article:
Portland housing report shows progress, but gap in affordability persists - Press Herald
- Progress Lighting - Home - December 22nd, 2016 [December 22nd, 2016]
- Home - Progress Lighting Outlet - Authorized Progress Dealer - January 13th, 2017 [January 13th, 2017]
- What does progress mean? - Definitions.net - January 13th, 2017 [January 13th, 2017]
- Progress Fire Company Harrisburg, PA - January 13th, 2017 [January 13th, 2017]
- Homepage Center for American Progress - January 13th, 2017 [January 13th, 2017]
- Progress being made on possible grocery store co-op in Winston-Salem - myfox8.com - February 7th, 2017 [February 7th, 2017]
- Nioh Review-in-Progress: FromSoftware's Formula Evolved - Shacknews - February 7th, 2017 [February 7th, 2017]
- Deutsche Bundesbank Cites Progress With Blockchain-Based Settlement - CryptoCoinsNews - February 7th, 2017 [February 7th, 2017]
- IMF: Greece's debts are still unsustainable despite progress - The Seattle Times - February 7th, 2017 [February 7th, 2017]
- Think Progress Editor Mocks Audi for Equal Pay Super Bowl Ad - Breitbart News - February 7th, 2017 [February 7th, 2017]
- Progress apparent on defense - Pittsburgh Steelers - Steelers.com - February 7th, 2017 [February 7th, 2017]
- IMF: Greece's Debts are Still Unsustainable, Despite Progress - Voice of America - February 7th, 2017 [February 7th, 2017]
- Can US disrupter-in-chief trigger some progress? - Jerusalem Post Israel News - February 7th, 2017 [February 7th, 2017]
- The Cost of Progress - Slate Magazine - February 7th, 2017 [February 7th, 2017]
- Cavaliers' pitching rotation a work in progress | Cavalier Insider ... - The Daily Progress - February 8th, 2017 [February 8th, 2017]
- High schoolers create 'zines for progress' with WolfsonianFIU - FIU News - February 8th, 2017 [February 8th, 2017]
- Cries of 'dictator' show Pope Francis is making progress - Crux: Covering all things Catholic - February 8th, 2017 [February 8th, 2017]
- Officials: City is making progress in effort to address opioid crisis - The Union Leader - February 8th, 2017 [February 8th, 2017]
- IN OUR VIEW: Work Ready in Progress for Carter - The Independent - February 8th, 2017 [February 8th, 2017]
- BP's Earnings Keep Showing Progress, Even if the Headline Results Don't Say So - Motley Fool - February 8th, 2017 [February 8th, 2017]
- Women's Progress in the Boardroom Took a Hit in 2016 - Inc.com - February 9th, 2017 [February 9th, 2017]
- Blight Elimination Progress, Uplifting - MyWabashValley - February 9th, 2017 [February 9th, 2017]
- Rauner 'heartened' by progress in Springfield - Bloomington Pantagraph - February 9th, 2017 [February 9th, 2017]
- David Johnson showed off the insane progress he's making in rehab from his knee injury - USA TODAY - February 9th, 2017 [February 9th, 2017]
- Through the looking glass: Tower view showcases progress on Amazon's unique biospheres - GeekWire - February 9th, 2017 [February 9th, 2017]
- Britney Spears Says Niece Maddie Is 'Making Progress' After ATV Accident: 'Let's All Keep Praying' - PEOPLE.com - February 9th, 2017 [February 9th, 2017]
- Progress on vet's Mustang to be unveiled - Indianapolis Star - February 9th, 2017 [February 9th, 2017]
- Evgeni Malkin making 'progress,' could return Saturday in Arizona - Pittsburgh Post-Gazette - February 9th, 2017 [February 9th, 2017]
- Forecasters See Slow Progress in Labor-Market Measures Favored by Trump Administration - Wall Street Journal - February 9th, 2017 [February 9th, 2017]
- 'Paper boys' were the lifeblood of The Daily Progress - The Daily Progress - February 10th, 2017 [February 10th, 2017]
- Cliffs Natural Resources Is Showing a Lot of Progress on Its Return to Profitability - Motley Fool - February 10th, 2017 [February 10th, 2017]
- ATA says states' telemedicine progress a mixed bag ... - FierceHealthcare - February 10th, 2017 [February 10th, 2017]
- Seltzer's Notebook | Colangelo Encouraged by Sixers' Progress - Sixers.com - February 10th, 2017 [February 10th, 2017]
- The Trump administration can't entirely roll back progress on climate change here's why - Washington Post - February 10th, 2017 [February 10th, 2017]
- Colts position review: OL showed legit progress, but work remains - Indianapolis Star - February 10th, 2017 [February 10th, 2017]
- Egyptian Economy Making Slow, Tentative Progress - Voice of America - February 10th, 2017 [February 10th, 2017]
- ATA: States show mixed progress with telemedicine | Healthcare Dive - Healthcare Dive - February 11th, 2017 [February 11th, 2017]
- Louisville City notes: McCabe making progress - The Courier-Journal - February 11th, 2017 [February 11th, 2017]
- Jeremy Lin: Progress but no timetable - NetsDaily - February 11th, 2017 [February 11th, 2017]
- Marginal progress for Turkish-backed forces in north Syria - LA Daily News - February 11th, 2017 [February 11th, 2017]
- Jimmy Cheek: UT chancellor appreciative of hard work, progress on journey - Knoxville News Sentinel - February 12th, 2017 [February 12th, 2017]
- Syria Regional Crisis 2016 Emergency Appeal - Progress Report - Reliefweb - February 12th, 2017 [February 12th, 2017]
- CWLP officials: Bailout repayment would set back progress - The State Journal-Register - February 12th, 2017 [February 12th, 2017]
- Pistons' Johnson making halting but definite progress - The Detroit News - February 12th, 2017 [February 12th, 2017]
- Clairton works: Real progress is coming to the former steel town - Pittsburgh Post-Gazette - February 12th, 2017 [February 12th, 2017]
- The Democrats' Strategy: Hindering Progress For Partisan Politics - Daily Caller - February 13th, 2017 [February 13th, 2017]
- The surprising progress stoppers on the Dallas Cowboys defensive line - Cowboys Wire - February 13th, 2017 [February 13th, 2017]
- Gender Progress in Ballet - Huffington Post - February 13th, 2017 [February 13th, 2017]
- Foyt pleased with progress, regrets lack of time - Motorsport.com, Edition: Global - February 13th, 2017 [February 13th, 2017]
- Progress Made, but Threat Lingers at California's Oroville Dam - Wall Street Journal - February 13th, 2017 [February 13th, 2017]
- Adele, Beyonc, and the Grammys' Fear of Progress - The Atlantic - February 13th, 2017 [February 13th, 2017]
- North Korea Claims Progress on Long-Range Goal With Missile Test - New York Times - February 13th, 2017 [February 13th, 2017]
- How Travel Bans Can Impede America's Progress - Forbes - Forbes - February 13th, 2017 [February 13th, 2017]
- Jeff Sessions' appointment threatens decades of civil rights progress - The Hill (blog) - February 14th, 2017 [February 14th, 2017]
- Ionis Earns $75M Milestone from Bayer for Progress of Antisense Drug Program - Genetic Engineering & Biotechnology News (press release) - February 14th, 2017 [February 14th, 2017]
- Guilford Schools annual report shows mixed results on progress - Greensboro News & Record (blog) - February 14th, 2017 [February 14th, 2017]
- Sniper Elite 4 review in progress - PC Gamer - February 14th, 2017 [February 14th, 2017]
- For Honor Review In Progress - GameSpot - February 14th, 2017 [February 14th, 2017]
- China's military progress challenges Western dominance, says IISS - Deutsche Welle - February 15th, 2017 [February 15th, 2017]
- PFW in Progress Recap 2/14: Patriots Offseason Outlook | New ... - Patriots.com - February 15th, 2017 [February 15th, 2017]
- Daily Progress, chamber establish regional business Hall of Fame - The Daily Progress - February 15th, 2017 [February 15th, 2017]
- Huntsville-based Progress Bank to acquire Birmingham's First Partners Bank - Birmingham Business Journal - February 15th, 2017 [February 15th, 2017]
- City, UF sign partnership for progress - Gainesville Sun - February 15th, 2017 [February 15th, 2017]
- California officials lift evacuation order for 200000 threatened by damaged dam - CBS News - February 15th, 2017 [February 15th, 2017]
- 5G progress at Ericsson could help enterprises work worldwide - Computerworld - February 16th, 2017 [February 16th, 2017]
- Officials making 'great progress' on California dam repairs, remind residents to stay vigilant - Fox News - February 16th, 2017 [February 16th, 2017]
- Halo Wars 2 Review in Progress - IGN - February 16th, 2017 [February 16th, 2017]
- CUGNON: Forward progress - Yale Daily News (blog) - February 16th, 2017 [February 16th, 2017]
- F-35 Program Makes Significant, Solid Progress, Official Says - Department of Defense - February 16th, 2017 [February 16th, 2017]
- Lenovo's data center ambitions remain work in progress following Q3 results - ZDNet - February 16th, 2017 [February 16th, 2017]
- PFW in Progress Recap 2/16: Free Agency and Potential Patriots - Patriots.com - February 16th, 2017 [February 16th, 2017]
- S&P 500: 'Blow-off' Phase in Progress - DailyFX - February 16th, 2017 [February 16th, 2017]
- Combine invites are another sign of progress at Michigan - Big Ten ... - ESPN (blog) - February 16th, 2017 [February 16th, 2017]
- Halo Wars 2 review in progress - PC Gamer - February 17th, 2017 [February 17th, 2017]
- 'Hero' film produced just for Charlottesville featured the mayor, The Daily Progress - The Daily Progress - February 17th, 2017 [February 17th, 2017]
- Republicans' health care overhaul still a work in progress - Press Herald - February 17th, 2017 [February 17th, 2017]
- Trump Boasts Of 'Incredible Progress' In 4 Weeks Of Presidency - NPR - February 17th, 2017 [February 17th, 2017]
- Donald Trump touts promise progress at press conference - PolitiFact - February 17th, 2017 [February 17th, 2017]
- Mild winter helping crews make significant progress on East End Connector - WRAL.com - February 18th, 2017 [February 18th, 2017]
- Committee updates Legislature on precinct consolidation progress - Chicago Tribune - February 18th, 2017 [February 18th, 2017]