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Housing in the Nation's Capital 2003

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Housing in the Nation's Capital 2003 THE URBAN INSTITUTE WASHINGTON, DC Housing in the Nation’s Capital Housing in the Nation’s 2003 F ANNIE MAE FOUNDATION Housing IN THE 4000 Wisconsin Avenue, NW North Tower, Suite One NATION’S CAPITAL Washington, DC 20016-2804 (202) 274-8000 www.fanniemaefoundation.org 2003 www.knowledgeplex.org FMF R 236 The Fannie Mae Foundation creates affordable homeownership and housing opportunities through innovative partnerships and initiatives that build healthy, vibrant communities across the United States. The Foundation is specially committed to improving the quality of life for the people of its hometown, Washington D.C., and to enhancing the livability of the city’s neighborhoods. Headquartered in Washington, D.C., the Foundation is a private, nonprofit organization whose sole source of support is Fannie Mae, and has regional offices in Atlanta, Chicago, Dallas, Pasadena, and Philadelphia. BOARD OF DIRECTORS OFFICERS Franklin D. Raines Stewart Kwoh Stacey D. Stewart James H. Carr Chairman Director President and CEO Senior Vice President Financial Innovation, Stacey D. Stewart Robert J. Levin Glen S. Howard Planning, and Research President and CEO Treasurer and Director General Counsel and and Director Senior Vice President Kevin Smith William R. Maloni Senior Vice President Kenneth J. Bacon Director Beverly L. Barnes Finance and Administration Director Senior Vice President Daniel H. Mudd Communications Sheila F. Maith Floyd Flake Director Vice President Director Peter Beard Leadership and Practice John Sasso Senior Vice President Development Stephen Goldsmith Director Knowledge Access and Director Technology Strategy Rebecca R. Senhauser Jamie S. Gorelick Director Director H. Patrick Swygert Charles V. Greener Director Director Karen Hastie Williams Colleen Hernandez Director Director Barry Zigas Louis W. Hoyes Director Director Glen S. Howard Secretary © Fannie Mae Foundation 2003. All Rights Reserved. The Fannie Mae Foundation, through its publications and other programs, is committed to the full and fair exposition of issues related to affordable housing and community development. The opinions expressed in this publication are those of the authors and do not necessarily represent the views of the Fannie Mae Foundation or its officers or directors. Housing IN THE NATION’S CAPITAL 2003 TABLE OF CONTENTS FOREWORD. iii EXECUTIVE SUMMARY . 1 CHAPTER 1 Introduction . 5 CHAPTER 2 Economic and Demographic Context . 8 CHAPTER 3 Housing Stock and Production . 17 CHAPTER 4 Homeownership Market . 25 CHAPTER 5 Rental Housing Market . 35 PREPARED FOR THE CHAPTER 6 FANNIE MAE FOUNDATION Low-Income Housing Needs and Resources . 43 BY THE URBAN INSTITUTE CHAPTER 7 Patterns of Concentrated Neighborhood Poverty. 51 MARGERY AUSTIN TURNER G. THOMAS KINGSLEY KATHRYN L. S. PETTIT AUTHORS . 56 CHRISTOPHER W. SNOW PETER A. TATIAN ENDNOTES . 56 ALISA WILSON REFERENCES. 58 APPENDIXES. 59 THE URBAN INSTITUTE WASHINGTON, DC ble of Contents Ta Featured Neighborhood Clusters SPOTLIGHTS The text highlights findings for neighborhood “clusters,” 16 areas defined by the District’s Office of Planning and made up of three to five neighborhoods. The text iden- tifies the cluster by the first neighborhood listed for that cluster, followed by the cluster number. A listing of the 19 neighborhoods in each cluster appears in Appendix A. 20 14 CHAPTER 2 Cathedral Heights (14). 12 2 15 22 Colonial Village (16) . 14 3 3 Near Southeast (27). 15 29 CHAPTER 3 30 Lamond Riggs (19) . 18 Douglass (38) . 21 Historic Anacostia (28). 22 27 CHAPTER 4 28 35 37 Howard University (3) . 26 38 North Michigan Park (20) . 27 Mayfair (30) . 29 CHAPTER 5 Cleveland Park (15) . 36 Fairfax Village (35) . 38 Eastland Gardens (29) . 39 CHAPTER 6 Sheridan (37) . 44 Brookland (22) . 46 Mount Pleasant (2) . 49 Housing in the Nation’s Capital 2003 Housing in the Nation’s ii FOREWORD With last year’s launch of Housing in the Nation’s Capital, This juxtaposition of progress and challenge is nowhere the Fannie Mae Foundation took aim at two goals. We more evident than in Washington, D.C.’s Congress wanted to provide policy makers, housing professionals, Heights neighborhood. Congress Heights stands as one and the public at large with a rich, textured portrait of of the city’s housing production leaders. It also ranked housing conditions in the Washington, D.C., metropol- among the city’s top neighborhoods in new rental itan area. And we wanted to supply the region with a housing construction during the 1990s and currently fact-fueled engine that could ignite and propel an has more planned housing units than all but one other ongoing dialogue on the housing challenges facing our neighborhood in the city. city and our region. But Congress Heights also faces serious challenges. The We succeeded. Demand for the first edition of Housing neighborhood is a city leader in housing code violations in the Nation’s Capital quickly exceeded our expecta- and household overcrowding among the poor. And in tions. The District government is using it to inform plan- Congress Heights, as in the District as a whole, concen- ning efforts. Local housing and community develop- trated poverty worsened during the decade. ment organizations are relying on the report to monitor The challenge now facing those committed to improv- affordable housing challenges. And local educators are ing the quality of life in the Washington, D.C., metro- using it to teach the next generation of housing and politan area is to build on the progress of distressed community development professionals. communities like Congress Heights. Meeting this chal- This second edition of Housing in the Nation’s Capital lenge will require a concerted effort in which public, builds on the first. It includes newly available data from private, and philanthropic organizations work together the most recent decennial census and a special chapter to produce the will—and the wallet—necessary for last- focusing on concentrated poverty. In addition, this ing, substantive change. year’s report places housing conditions in the The Fannie Mae Foundation is in the early stages of Washington, D.C., region in context by comparing leading just such an initiative. Guided by the voice of them with conditions in five other metropolitan areas. neighborhood residents and the data from Housing in This year’s Housing in the Nation’s Capital tells a story of the Nation’s Capital, the Foundation is aligning its remarkable housing market strength in the region and Congress Heights initiatives with those of our key part- particularly in the District. The city is experiencing its ners: the government of Washington, D.C., the East-of- most robust housing market in years, and there’s the-River Community Development Corporation, and renewed interest and new investment in once over- the Kimsey Foundation. looked inner-city neighborhoods. Together, we will demonstrate the value of concerted But the 2003 edition of Housing in the Nation’s Capital community development activities. We intend to work also offers compelling evidence that not all communities in partnership with Congress Heights residents to accel- are benefiting equally from the region’s prosperity. The erate the most promising trends and reverse the most metropolitan area has a large homeless population and disturbing trends outlined in Housing in the Nation’s a deficit of almost 40,000 housing units affordable to Capital. And we are confident that one day soon, the lowest income renters. One of the report’s most strik- Congress Heights will stand as an inspiration, as a mon- ing findings is the dramatic upsurge in the number of ument to neighborhood revitalization, and as a model District neighborhoods with extremely high poverty rates. for other communities throughout our city and throughout our nation. This trend set the District apart from the rest of the nation. While the number of District residents living in areas of extreme poverty more than tripled, the num- bers in the rest of the nation declined. This disturbing Stacey D. Stewart increase in concentrated poverty coincided with a decade President and CEO of exceptional economic growth. While prosperity Fannie Mae Foundation spread, the poorest of our citizens became poorer. oreword F iii ACKNOWLEDGMENTS The authors thank the Fannie Mae Foundation for pro- viding us with the ongoing opportunity to examine housing conditions and trends in our city and region. In particular, we thank Patrick Simmons, director of Housing Demography at the Fannie Mae Foundation, for his many contributions to the content, organization, and accuracy of this report. We also thank Jessica Cigna, Sandra Padilla, and Beata Bednarz of the Urban Institute, who assisted in data assembly and analysis as well as in the preparation of maps and graphs. In addi- tion, we wish to acknowledge the other funders that support the Urban Institute’s ongoing work to assem- ble and verify much of the information presented in this report: the Annie E. Casey Foundation, through the D.C. Data Warehouse, and the Rockefeller Found- ation, through the Neighborhood Change Database. Finally, we greatly appreciate the comments and sug- gestions provided by a group of advisors convened by the Fannie Mae Foundation. Of course, all errors and omissions remain the responsibility of the authors. The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders. Housing in the Nation’s Capital 2003 Housing in the Nation’s iv Housing IN THE EXECUTIVE NATION’S CAPITAL SUMMARY AGAINST THE backdrop of a national recession and anemic recovery, the Washington region’s economy remains resilient, and its housing boom has reached new heights. Employment in the metropolitan area fell between 2001 and 2002, but the decline was modest. And new housing construction, after a minor slowdown in 2001, bounced back last year to reach its highest level since 1988.
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