For decades, Atlanta has attracted professionals seeking quality housing that wouldn’t swallow as much of their incomes as in cities like New York or San Francisco. Today, though, we are in the midst of a new trend: a hot housing market marked by the development almost exclusively of luxury housing targeted to high-end renters.
About 95 percent of new apartments in Atlanta in recent years have been in the luxury category. Just a few weeks ago, Inman Park welcomed the new luxury rental complex, Inman Quarter, with rents as high as $4,000 a month.
This influx of luxury apartments in Atlanta speaks to our economic strength, but we know a healthy economy isn’t possible without affordable workforce housing for the majority of Atlantans. By the U.S. Department of Housing and Urban Development’s affordable-housing standard, a worker making the median income here should spend no more than $1,400 a month on rent. The alarming fact is a significant segment of Atlanta residents spend more than this, and many of the new units in our pipeline will rent for higher amounts.
In response, we are proactively addressing the problem. The city of Atlanta has program guidelines that require a percentage of affordable housing units to be established for new developments seeking public financing. When Tax Allocation District funds, tax abatements or other public subsidies are utilized by a developer, they are encouraged to provide a percentage of affordable units. Such is the case with the luxury apartments at Ponce City Market. You can pay up to $3,395 a month for an apartment, but 20 percent of its 259 units rent for $998 per month.
Another approach is the practice of revitalizing existing properties by turning them into newer, mixed-use and mixed-income communities. A good example of this is the Perry-Bolton/Northwest Atlanta Tax Allocation District. Located within the tax allocation district, West Highland — formerly known as Perry Homes — was transformed from an area that housed derelict properties and old apartments into a vibrant neighborhood that includes more than 650 new single-family homes and 700 apartments. While the housing stock in West Highlands is considered luxury, a designated number of units are affordable for working-class residents.
Mayor Kasim Reed has charged his administration with ensuring longtime middle-class and low-income residents are not priced out of the city. To further that commitment, Invest Atlanta last year worked with the city to complete a comprehensive housing strategy. The goals are to cut by 10 percent the number of Atlanta residents spending more than 30 percent of their income on housing by 2020, and to create a broad mix of housing choices throughout the city to serve a diverse population and workforce. In addition, the strategy seeks to incorporate inclusionary zoning that will require a certain number of units in the city to be affordable.
The Reed administration believes Atlanta’s economic future is best secured by a housing market that includes quality options for all income levels, and this is achieved by mandatory inclusionary zoning. We have researched national best practices for inclusionary housing and have consulted with such peer communities as Austin, Boston, Montgomery County, Md., Seattle and Washington, D.C., which all have mandatory affordable housing development policies. We have also hired national experts to develop a predictable financial model specific to the Atlanta market and have hosted extensive community and stakeholder engagement meetings.
We hope by the end of the year, Atlanta will have legislation that enforces an inclusionary housing policy. Developing new, luxury apartments that satisfy strong market demand is not mutually exclusive from creating a robust selection of quality, affordable workforce housing. Atlanta plans to be a national leader in ensuring the CEO, teacher, lawyer and artist can live in the same neighborhood in the same quality, affordable homes.
Terri Lee is deputy commissioner of Atlanta’s Department of Planning and Community Development.
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