Stable residents, stable properties
By: J. David Chapman/January 13, 2022
The Urban Land Institute has been my “go-to” place when it comes to evaluating housing options and issues. Recently, the ULI issued a report that caught my eye. The report found that proactive efforts are necessary to protect the security of renters and allow property owners/managers to viably steward and operate their properties. It is a partnership between landlords and tenants. This sounds obvious, right?
Obvious, but not easy. I have witnessed communities referring to owners and landlords as “greedy” and renters as “irresponsible” and not wanting “rental homes” in their neighborhoods. The report, called Stable Residents, Stable Properties concludes that finding common ground among stakeholders in the rental market is critical to creating sound housing policy as the United States struggles to improve resident stability amid a nationwide housing shortage and the ramifications of the COVID-19 pandemic.
I could not agree more. Rental housing options in communities are a very important ingredient to growing a healthy, diverse and efficient community. The pandemic exacerbated the preexisting financial insecurity faced by many lower-income renters and essential workers. This comes at a time when property owners/managers are facing higher costs and labor shortages. The report suggests that the federal, state and local governments should construct policy that supports short and long-term stability for renters and owners and addresses the severe shortage of decent, attainable rental housing.
Research in this report included a literature and data review, 30 interviews, and 280 survey responses from renters, tenant advocates, public officials, housing affordability researchers, property owners, and developers. Critical points of general consensus include: strengthen public services, elevate housing quality, increase the housing supply, build trust, ensure good governance, and concentrated and focused efforts.
Those points are hard to argue and I don’t have any trouble believing the findings. However, I would say that the devil lies in the details. The report provides several takeaways that could inform future policy-making. Ensuring that vulnerable tenants can fulfill their rent obligations and safeguarding housing quality and access in the future is key. A well-designed combination of “carrots” and “sticks” that improve housing quality and tenant living conditions is also important. Lastly, rebalancing eviction policy that can improve tenants’ ability to exercise their rights is imperative. I always question whether government is the answer; however, this report is certainly a start to a needed conversation.
J. David Chapman is a professor of finance and real estate at the University of Central Oklahoma (jchapman7@uco.edu).