continues on page 24 The following are excerpts from “Local Governments Responding: The Housing Crisis in North Carolina, a report recently issued by NCLM and the N.C. Association of County Commissioners, and based on survey data taken from the fastest growing planning jurisdictions in the state. Please utilize these findings to help make the case that local governments are taking positive steps to address housing affordability in North Carolina, and that their actions to lead on this critical issue require local authority and flexibility. INTRO North Carolina, like much of the rest of the country, faces a crisis in housing affordability. Few people question that is the case, as the median home price in the state rose by 25% in 2021. Added to that fact is that more and more renters in North Carolina are cost-burdened, paying more than 30% of their income in rent. Housing affordability has been an issue that the state’s most urbanized areas have been facing and addressing for years, but finding affordable places to live is increasingly a problem in communities of all sizes. Outside of places like Raleigh and Charlotte, tourism communities in the mountains and at the coast have especially struggled in recent years to meet the housing needs of a workforce that allows local economies to function. And as urban centers have become more attractive, booming suburban communities have also seen housing costs rise. The cause of the rise in the cost of housing is complex. It encompasses everything from a 60-year trend of urbanization to labor shortages to supply chain disruptions created by the COVID-19 pandemic. Nonetheless, some critics have wanted to place the blame on cities and counties themselves, without recognizing that these same communities, with their job growth and attractive amenities, are simply facing the consequences of their own success. Land-use policies, as well as building approval processes, have come under scrutiny as the housing affordability crisis has escalated. In response to the housing crisis, the N.C. League of Municipalities and N.C. Association of County Commissioners undertook a survey of some of the fastest growing jurisdictions in North Carolina to better understand the scope of the problem, local policies and processes related to housing, and possible ways to better address the issue of affordable housing. Thirty-seven local jurisdictions (building inspections and planning departments), representing 31 municipalities and nine counties, responded. These jurisdictions ranged in size from the City of Raleigh and County of Mecklenburg to several smaller municipalities in fast-growing Brunswick County, such as Shallotte and Oak Island. They also included three joint municipal-county departments, Durham-Durham County, Sanford-Lee County and Winston-Salem-Forsyth County. This report examines those findings, delves more deeply into the causes of the housing affordability crisis, and looks at ways that are or could be utilized to help North Carolinians better accomplish the goal of home ownership and finding housing that fits their budget. A CRISIS IN AFFORDABILITY As noted earlier, the housing affordability crisis in North Carolina has become increasingly broad, affecting a range of communities. Even before the economic fallout associated with the COVID-19 pandemic, 45% of renters and 19% of homeowners in North Carolina were considered housing cost-burdened, that is, spending 30% or more of their income on housing costs, according to the NC Justice Center. NCLM.ORG 23
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