Troubling preliminary report shines light on Delaware housing costs, tight inventories

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(Above photo of Glasgow Court mobile home park in Bear, where homes in poor condition were vacated and demolished a few years ago following vandalism and fires. However, in most cases, the demolished units were not replaced with new modular homes).

Troubling preliminary findings from the 2023 Housing Needs Assessment report compiled by Root Policy Research were released on Tuesday. The report indicated that tens of thousands of residents are spending half of their income on housing. Meanwhile, the number of affordable mobile homes declines as lot rents continue to rise.

A summary of the findings released by the Delaware State Housing Authority is below.

Highlights

  • Overall, 50% of renters in Delaware are struggling with high rents, with 25,000 severely cost-burdened—paying more than 50% of their income in rent.
  • Since 2010, the homeownership rate has dropped for all age cohorts except seniors, with the most significant decline among ages 35 to 44, where the rate dropped from 71% to 63%.
  • The composition of the state’s housing stock has changed little over time, with the most significant change being a 6,800 unit decrease in manufactured or mobile homes.
  • To keep up with household growth through 2030, the state will need to add 24,400 new units or an average of 2,400 units per year.

Other takeaways

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  • Securing additional funding and financing tools will be essential to addressing current housing shortages and meeting projected needs. In recent years, Delaware has received unprecedented federal and state funding for housing, but more investment will be needed.
  • Planning and zoning changes are needed to ensure all Delawareans can access safe housing, regardless of income, age, location, or household size. Even with additional funding and resources, efforts to address the state’s housing needs will be constrained unless state and local regulatory policies explicitly encourage the development of diverse housing types.
  • Cross-sector collaboration is crucial to making meaningful progress toward addressing the shortage of affordable units. This includes communication and cooperation among state and municipal governments as well as the private and nonprofit sectors.

To view the Delaware Housing Needs Assessment Executive Summary and event PowerPoint, visit: http://www.destatehousing.com/FormsAndInformation/needs.php. The full report will be available later this fall.

This comprehensive report was completed using data collection and analysis of various housing sources, stakeholder interviews and focus groups with residents, community leaders, and housing advocates, and a resident survey.

“The 2023 Housing Needs Assessment report findings are a stark reminder that the housing crisis in Delaware is real, and it is urgent,” said Matthew Heckles, HUD regional administrator. “My team and I in HUD’s Region 3 are committed to working with our state and local partners to secure additional funding and financing tools for affordable housing.”

“Together, I’m confident that we can make Delaware the perfect place to live for all current and future residents,” said Eugene Young, Jr., Director of the State Housing Authority. “I want to thank Root Policy Research and the DSHA staff for their hard work today and over the past few months. We are proud of this report and can’t wait for the full release later this fall.”

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