Advancing Local Housing Affordability: NACo Housing Task Force Final Report

Many colliding factors contribute to the current housing affordability crisis.

Housing costs have been steadily rising, often outpacing inflation or wage growth. Roughly half (46 percent) of renters and over one in three homeowners (35.1 percent) were cost-burdened in 2021, including 23 percent of renters and 9 percent of homeowners who spent at least half of their household income on housing throughout the year.¹ Compounding these burdens, the median price of a home surged by more than $107,000 between Q1 2020 and Q1 2023.² Furthermore, rents have increased by 16 percent between January 2020 and March 2023, with additional rent increases expected in the coming months.³ With wages increases struggling to keep pace for many in the workforce over the last several decades, the increase in the costs of housing are straining renters and homeowners alike.

Not only are Americans facing higher housing costs, but the stock available for renting or owning is also increasingly limited and, too often, in disrepair. The number of active housing listings in June 2023 was at one of the lowest levels since 2016 and 34 percent lower than the number of listings in February 2020.⁴ Moreover, the number of available rental units has been cut nearly in half over the past decade (10 percent in 2010 vs. 5.2 percent at the end of 2021 vacancy rates).⁵

For the available homes, the Philadelphia Federal Reserve concluded roughly one-third had significant non-cosmetic deficiencies in 2022, conveying an estimated price tag of $149.3 billion for repairs.⁶ Increased repair costs are, in part, a byproduct of older housing stock. The Median age of homes increased to 43 years old in 2021.⁷ Plus, soaring construction costs (materials and labor) during the pandemic exacerbated the challenge.⁸

As the population demographics continue to shift, approximately 40 percent of housing stock lacks accessibility like an entry-level bedroom and bathroom necessary to serve older generations and those with reduced mobility issues.⁹ Moreover, the increasing frequency of natural disasters significantly threatens the existing housing stock. Throughout 2022, there were 18 unique billion-dollar natural disasters; when combined with the past seven years, the total price tag exceeds $1 trillion, constituting more than one-third of the entire disaster cost over the past 42 years.¹⁰

Though housing has been a critical discussion point in the body politic for decades, the problem has grown in scope. During the pandemic, a sample of landlords reporting collection rates above 90 percent fell from 89 percent in 2019 to 62 percent in 2020.¹¹ Those experiencing particular hardship during the pandemic tended to be low-income or of Hispanic origin.¹² Additionally, as flexible work options become more mainstream anecdotes of individuals seeking a different environment to work from – in a lower cost- of-living area – have skyrocketed and, in some cases, are pricing locals out of their home communities.¹³

Counties face significant headwinds when it comes to housing affordability. Across federal, state, local, private and community sectors, authority and responsibility to impact housing affordability varies. All of these intersections weave a complex system to navigate. As such, it is critical for counties to engage in dialogue and coordination to build strong relationships with the stakeholders impacting housing. Below is a sample of the continuum of factors impacting housing supply and affordability.

Global and National

• Housing materials supply chains
• Housing investments and programs
• Monetary policy and interest rates
• Tax policy and housing laws
• Labor laws

State Governments

• Tax policies and incentives
• Disaster mitigation
• Building codes & local housing law preemption
• Land use and zoning framework

Sub-State Regional and Local Governments

• Tax policies and incentives – particularly county property taxes
• Local building codes, ordinances and land use
• Programs, investments and services in housing, workforce, infrastructure and transportation
• Disaster and emergency preparedness and mitigation

Private Markets

• Global and national investors, lenders and insurers
• Technology disrupters such as shared service providers
• Housing developers and financial institutions
• Rental markets and landlord practices
• Skilled labor shortages and wages

Community Members and Public Interests

• Historically designated areas
• Community land use interests
• Nonprofit and community-based organizations delivering housing services
• Neighborhood associations, community groups and local advocates

Housing spans a wide range of touchpoints in many counties. Though county authorities vary, each county can play a role in the solution. There are five key areas in which counties may possess the authority to foster housing affordability.

County Housing Touchpoints

Community Engagement, Partnerships and Education

Much of the work required to increase housing stock depends on engagement with the community. Not only can counties partner with other governments, private sector officials and community organizations to advance housing, but local leaders can also serve as an educational body to inform residents.

Federal-County Intergovernmental Nexus

Federal funding – such as the U.S. Department of Housing and Urban Development (HUD) – is often used by counties to administer housing programs, build infrastructure that supports new development and provide assistance for low-income residents.

Finance, Lending and County Tax Policy

Property taxes are the primary driver of most county finances and can play a significant role in the use of land. Additionally, some counties work with financial institutions or leverage federal programs to provide direct support to individuals or incentives for new developments, homeownership and other housing programs.

Land Use, Zoning, Infrastructure and Community Planning

Zoning is important to designate how a parcel of land is used within a community, and a community land use plan seeks to properly map out the land within a county jurisdiction. Further, to build housing requires infrastructure like roads, utilities and broadband, some of which counties build, maintain, regulate or otherwise support.

Regulation, Codes and Associated Feeds

Developing a property for housing requires following a set of codes and regulations to ensure safety. Counties often issue permits and conduct code enforcement, and some developments require studies or carry other special fees associated with construction.

In November 2022, NACo President Denise Winfrey launched the Housing Task Force, a group of 33 elected and professional county housing experts. President Winfrey charged the task force with two goals: to elevate county-led solutions to address the housing affordability crisis confronting America’s counties and identify intergovernmental opportunities for partnership on housing issues.

The task force work began in earnest in November 2022, with an in-person convening to explore the county's role in housing. Led by co-chairs Sherry Maupin and Kevin Boyce, Commissioners from Valley County, Idaho and Franklin County, Ohio, respectively, task force members engaged in discussion with experts from the Harvard Joint Center for Housing, the

U.S. Department of Housing and Urban Development, and the Aspen Institute – the task force partner – on county authority, challenges and solutions to housing affordability.

Five core focus areas emerged from these conversations to form the County Housing Ecosystem.

1. The federal-county intergovernmental nexus 
2. Local regulations, codes and fees
3. Finance, lending and county tax policy
4. Land use, zoning, infrastructure and community planning
5. Community engagement, partnerships and education

Meeting again in February 2023 during the NACo Legislative Conference in Washington, D.C., the task force explored these areas with in-depth conversations on homeownership, rental housing and technology solutions. The task force also participated

in an open discussion with White House senior leadership on the federal-to-county nexus and areas for intergovernmental collaboration.

Over the following months, the task force met virtually with experts from around the country to discuss the financial, administrative and policy levers counties can employ to affect change. During the final in-person meeting in May 2023 in Dallas County, Texas, task force members explored some of these solutions in action.

From the task force work, a recommendation guide for local leaders seeking to advance housing affordability has been born. The framework is not a silver bullet solution, and housing affordability does not come to fruition overnight. However, the framework provides a guide – a point of origin – for leaders seeking change, wherever they may be starting the housing affordability journey. Though county authority on housing is complex and varied, the task force guide aims to be another tool in the county toolbox from which local leaders can draw ideas, inspiration, projects and solutions that can be tailored to fit the unique needs of each community.

Though the work of counties on advancing housing affordability is not done, the release of the recommendation framework marks a milestone in the county effort to build strong communities and ensure equitable access to safe, quality and reasonably priced housing for every resident in every county across the country.

Recommendations in the Advancing Local Housing Affordability document were developed by members of NACo’s task force on housing affordability; recommendations may not necessarily reflect individual task force members’ views. NACo thanks the task force members – particularly co-chairs Commissioner Kevin Boyce of Franklin County and Commissioner Sherry Maupin of Valley County – for their tireless dedication to advocating for local solutions to housing affordability.

NACo’s task force on housing affordability was generously funded in part by the Aspen Institute Financial Security Program (Aspen FSP). Any findings, recommendations or anecdotes reflected in the report do not necessarily reflect the views of Aspen FSP.

This report was compiled by Kevin Shrawder, NACo’s Senior Analyst for Economics and Government Studies, with support from Jesse Priddy, NACo’s Housing Policy Fellow. They would like to thank NACo colleagues including Mike Matthews, Legislative Director for Community, Economic and Workforce Development; Julia Cortina, Legislative Associate; Jonathan Harris, Associate Director, Research; Ricardo Aguilar, Associate Director, Data Analytics; and Stacy Nakintu, Sr. Analyst for Research and Data Analytics for their contributions to the task force work.

Launched in November 2022, the NACo Housing Task Force convened county government officials nationwide to illuminate the most critical housing challenges and opportunities from the county government perspective.

Throughout the work of the task force, several experts from across state, federal, local, private and nonprofit partners provided knowledge and insights on local housing policy. The following is a non-exhaustive list of the housing experts that engaged with, advised or otherwise were involved in task force activities.

1. NACo Analysis of U.S. Census Bureau - American Community Survey (ACS) 5-year estimates, 2017-2021 (Tables B25091 and B25070).
2. U.S. Census Bureau and U.S. Department of Housing and Urban Development, Median Sales Price of Houses Sold for the United States [MSPUS]; 2023.
3. U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers: Rent of Primary Residence in U.S. City Average [CUUR0000SEHA]; 2023.
4. Realtor.com, Housing Inventory: Active Listing Count in the United States [ACTLISCOUUS], retrieved from Federal Reserve Bank of St. Louis; 2023.
5. Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing, 2023.
6. Federal Reserve Bank of Philadelphia, Home Repairs Needs and Costs Estimates, 2023.
7. Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing, 2023.
8. RealtyNewsReport.com “Home Builders Face Delays in the Costly Supply Chain Strain” May 2, 2022.
9. U.S. Department of Housing and Urban Development, Accessibility in Housing 2019 American Housing Survey; 2022.
10. “Calculating the Cost of Weather and Climate Disasters” (National Oceanic and Atmospheric Administration, 2023).
11. Elijah De La Campa and Vincent J. Reina, “How has the Pandemic Affected Landlords?” (Joint Center for Housing Studies of Harvard University, 2021).
12. Michal Grinstein-Weiss, Brinda Gupta and others, “Housing Hardship Reach Unprecedented Heights During the COVID-19 Pandemic” (Brookings Institute, 2020).
13. Frank Morris, “The Pandemic has Sparked Rising House Prices Across the Rural U.S.” (National Public Radio, 2021).