The Joint Center for Housing Studies of Harvard University published a report, “Rental Deserts, Segregation, and Zoning,” examining the location and racial and economic characteristics of rental deserts in the U.S. The authors find that “rental deserts,” defined as neighborhoods where rental units make up a relatively small share of the housing stock, account for over one-third of all U.S. neighborhoods and have lower shares of people with lower incomes and people of color compared to neighborhoods with higher shares of rental housing. Further, the authors find that restrictive zoning measures that limit the number of housing permits or units, limit density, or require large minimum-lot sizes are associated with a lower share of rental housing in neighborhoods, suggesting that zoning reform is an important step toward creating more inclusive, mixed-tenure neighborhoods.
The authors rely on data from the 2022 5-year American Community Survey (ACS) to compare census tract-level rental housing shares and racial, ethnic, and income demographics. Tracts where the rental housing share is 20% of housing units or less were classified as rental deserts, while tracts where the share was between 20% to 80% were classified as mixed-tenure neighborhoods, and tracts where the share was 80% or more were classified as high-rental neighborhoods. The authors rely on Eviction Lab’s National Zoning and Land Use Database (NZLUD) to measure municipal-level zoning and land-use restrictiveness.
On a national level, the authors find that rental deserts account for 35% of all census tracts, while high-rental neighborhoods account for only 7%. Rental deserts are predominantly located in suburban areas and have a high share of single-family homes: single family homes account for 85% of all housing available in rental deserts, compared to 63% of homes in mixed-tenure neighborhoods and 17% in high-rental neighborhoods. Conversely, multifamily buildings with five or more units account for just 3% of housing units in rental deserts, compared to 69% of housing units in high-rental neighborhoods. In 17 of the nation’s 100 most populous metros, more than 40% of neighborhoods are rental deserts.
Rental deserts are much more likely to be occupied by white households with higher incomes. White people account for three-quarters of people living in rental deserts but only one-third of people living in high-rental neighborhoods. Conversely, people of color account for a quarter of people living in rental deserts but two-thirds of people living in high-rental neighborhoods. On average, the median household income in rental deserts across the U.S. is $99,670, compared to the $71,780 in mixed-tenure neighborhoods and $53,170 in high-rental neighborhoods. Although rents are similar across rental deserts and high-rental neighborhoods, the lack of rental options in rental deserts results in few affordable rental options for lower-income renters: the average rental desert has 56 units renting below $1,000, compared to 350 units in high-rental neighborhoods.
The authors find that zoning and land use policies are associated with segregation of rental housing. The existence of six or more growth control restrictions (or annual permit, unit, and dwelling limits) in a municipality is associated with an 8-percentage-point reduction in the share of rental housing at the neighborhood level, compared to neighborhood shares within municipalities with no growth controls. Similarly, the highest minimum lot requirements (two or more acres) are associated with an 8-percentage-point reduction in rental housing share in neighborhoods compared to those with the lowest minimum lot requirements (half an acre). Limiting dwelling units per acre to four or fewer units is associated with neighborhood rental housing shares that are 20 percentage points lower than limits that allow for 31 or more units. Conversely, inclusionary zoning programs, and regulations that allow for accessory dwelling units (ADUs), greater maximum building heights, and more multifamily housing zones are all associated with higher shares of rental housing in neighborhoods.
The authors conclude that restrictive zoning might limit neighborhood options for renters and potentially contribute to the segregation of rental housing. They further explain that neighborhoods that have limited rental housing options reinforce racial and socioeconomic segregation. The authors call for zoning changes that provide renters, who are more likely to be low-income and people of color, with a greater range of neighborhood options. Specifically, they highlight the need to allow more types of housing, relax permit requirements such as setbacks and parking spaces that inhibit new construction, build homes at lower price points, and expand subsidies in a range of neighborhoods. The authors acknowledge that these initiatives should be coupled with efforts to increase community support and education around the importance of new affordable housing and inclusive housing.
Read the full report at: https://bit.ly/3zSzJy9