Affordability of Housing

County Council Member Nancy Floreen posted information from a study on the amount and affordability of housing in the county. I asked Gaithersburg staff how we compare. Here is the result:

County: 33 percent of all residential housing units are rental units;

Staff: From our most current, published population report (ACS 5 year, 2015: verified apples to apples because Kirk includes the County for comparison, and the County is listed as 33 percent): Gaithersburg: 46 percent

County: 74 percent of renter households earn less than 100 percent of area median income;

Staff: From ACS, 5 Year, 2015, S2503: This is a trickier calculation. First, the income break nearest the AMI for a family of 4 is $110,300 is $99,999. I would say that we could factor in income rising, since Census data is kind of on the elderly side, but income isn’t really rising at all. That’s convenient for this purpose (only). The best we can do is an approximation to get a general sense of where we stand. There are 23,550 total households in Gaithersburg. 12,843 are owner-occupied (54%), and 10,707 (the 46% listed above) are renter occupied. So far so good. Census breaks the info down into groups of $5,000 to $50,000, and then lists $150,000 or more as its top tier. Since AMI is $110,300, then the tier listed as $75,000 to $99,999 along with the top tier is where we need to focus our number. Here’s how I would do the math, although you and Neil might think about this differently:

Renters at $99,000 and below: 79.1%
Renters between $100,000 – $149,999: 12.4%
Renters at $150,000 and above: 8.4%

Since AMI is $110,300, we could add 20% of 12.4% to 79.1% to capture those in the income category who edge into that middle tier. That would not make a huge difference, though. I would say between 79% and 80% of Gaithersburg renters earn less than 100% of AMI. That is consistent with what we know about Gaithersburg, generally.

County: and only 19 percent of rental units are affordable to households earning less than 50 percent of area median income.

If 50% of AMI is $55,150, then they should pay no more than $1,145 with no utilities (25%) and $1,378 if utilities are included (30%). First, the median rent in Gaithersburg is $1,542. Already not so good for low income renters. According to the ACS, there are 10,524 occupied units paying rent. Again, Census breaks don’t make this precise, but it is a close approximation. Their tiers are:

Less than $500: 408
$500-$999: 768
$1,000-$1,499: 3806

By those estimations, only 1176 (11%) are definitely affordable to those at or below 50% of AMI. You may want to bust the next category up another way, but I would say it would be fair to take 20% of the 3806 and classify that as “somewhat affordable” to those at or below 50% of AMI. That’s another 761, bringing the grand total up to about 18%.

Neil: How do we compare?

Not too far off. Although we are now on the good side of renter vs. owner, we still have more renters than the County. We have marginally more renters who are below 100% of AMI for the region. Very like the County, we have far too few units affordable to those at or below 50% of AMI. Thanks to progressive Council members, we are actively working on these issues every single day!

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Time for Balance

In an era of left-right political strife, it looks to me like we can forget the basics. While we are arguing about policy and allocating resources right or left, we forget to provide the essentials that everyone needs government to provide.

When I led the large HOA in Kentlands, it became very clear that everyone cared a lot about a few things — collecting the trash, managing the pool, plowing snow from our alleys, maintaining common buildings and amenities, and making sure we were fiscally sound. Everything else was nice to have, but only once the basics were covered.

In municipal government, it’s much the same — collect the recycling, plow the snow, maintain the roads, manage parks and events, and keep everyone safe. Educating the children and keeping traffic moving are on the list, except they are out of our control as a municipality. When I joined the council, I made it my mission to work with outside agencies to improve the areas outside of the city’s direct control.

As a commuter, our region is a bit of a nightmare. We have some of the worst traffic congestion in the country. I spent some time commuting from Gaithersburg to Reston — no job is worth that daily commute. Coming home on Fridays could take 2 painful hours. It’s not like I made the choice to live here and work there — when I bought my house I worked locally, but things change. And I could not understand why one of the wealthiest regions in the wealthiest country in the world could not manage its transportation.

Classroom space in our schools is another huge issue. My nearest elementary school was built for 650 students and has well over 1000 now, and growing every year. I see schools all over Gaithersburg and beyond at higher capacity.

Our infrastructure is stretched because of many factors. Our region is attractive — good jobs, good schools, safe streets — so people want to live here. Even when we don’t build more housing, people keep coming — the number of people in a household keeps growing.

The answer is to balance infrastructure with the demands of a growing population. The answer is many things — more transit, more roads, more schools. We’re out of balance. To catch up with school capacity would cost close to a billion dollars — that would get all the kids out of portables, build new schools to accommodate the 2500+ new students added to MCPS each year, and repair or replace the schools that are becoming dilapidated. That’s a lot of money in a system where we are happy when the state provides an extra $10 million in a year for school construction — not enough for a single school building.

The transportation system is a much bigger challenge. WMATA just determined that it needs $25 billion (with a B!) over the next 10 years to catch up on its infrastructure, and Metro only handles 15% of the work commutes in the region. Many officials believe that focusing new construction at Metro stations is the answer — but unless ALL the new residents use Metro, the new housing adds still more congestion to our roads.

It’s time for a new approach — we need to look at how we are allocating the budgets in the region and re-think where the money goes. From what I see of budgets in the region, a lot of the new spending is going anywhere but to the basic infrastructure and services that are so desperately needed here.

I’m not running for anything, I was elected to the Gaithersburg City Council in 2015 and I’m just trying to do the job that I was elected to do. I am not advocating for or against growth, but I am observing that growth happens and we’re not doing our region justice by ignoring the infrastructure to keep up. We can get there if we balance our priorities and take care of the essentials.

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  • Written by voteforneil