Ways Low Density Sprawl impacts Housing Affordability

It is important to address Affordable Housing for very low to moderate-income eligible households in the city, however in the context of discussions relating to Low Density Sprawl we refer to Housing Affordability generally to mean housing options, both rental and ownership, that represent a reasonable percentage of their monthly budget. This also applies to average income households.

Housing is less Affordable

Higher Total Ownership Cost

Short Term Impact

Housing built for the few

Sprawl is dominated by low density large single family houses. Typical new housing that is built is only affordable by those with high household incomes. Sprawl, particularly supported by restrictive zoning, does not provide housing that is affordable to many residents. It segregates housing types by size and income, separating wealthy residents from those in the middle and lower classes.

Total Ownership Cost is Higher

Sprawl increases total ownership costs of housing. After factoring in forced car dependency that results in significantly increased travel costs and the higher property taxes and energy costs associated with larger single family homes the total ownership cost is higher. Households in sprawl developments are forced to have 1 or more personal vehicles and thereby incur the costs of purchase, financing, insurance, operating and repair & maintenance. Even if a few lower cost townhouses are provided in a sprawl development the percentage of a households’ monthly budget relating to housing and transportation is significantly more than if the same housing choice was available in a connected community within the existing built area.

Short-term impact on Housing Prices:

An increase in supply of new large low-density houses only has a short-term marginal impact on the price of housing. If the majority of new housing is large single family homes without altering development policies and practices, this will induce further demand for large single family housing and drive up prices again. However, it is true that only restricting land expansion without addressing housing needs will result in negative results. Adjusting development policies and practices within the current development boundaries to supply affordable accessible housing will lower overall housing costs to the majority of residents. Those households in the top percentiles of income that continue to choose very large single family homes may experience some price increases however the housing & transportation costs of the majority of homeowners and renters can be lower with smart growth that focuses on human scale housing options with accessible desirable public spaces.