Study shows barriers to home ownership, housing needs in New Albany

Jan. 19—NEW ALBANY — The City of New Albany is seeking ways to increase housing accessibility and home ownership.

Claire Johnson, the city's economic development director, presented findings of a housing study at Thursday's city council meeting. The study was completed in partnership with the University of Louisville's Urban Studies Institute.

"The cityscape has seen an increase in new construction from residential buildings to commercial properties," Johnson said. "The boom in construction has led us to pause and reflect on the direction that we're headed."

"So we wanted to examine how we can promote, encourage and incentivize the right kinds of housing that our current and future residents need."

The New Albany Redevelopment Commission commissioned the housing study in July of last year, and it was completed in September. Matthew Ruther, a population geographer and director of UofL's Urban Studies Institute, led the study.

The housing study focused on current housing conditions and demographic shifts in the City of New Albany. The city will be using a "data-driven approach" to pursue improvements, Johnson said.

"We need to formulate a well-planned housing strategy for stable growth in New Albany," she said. "This means we need to balance sustainability and growth in housing by optimizing our land use, reducing environmental impacts and ensuring that infrastructure improvements are aligned with the needs of our residents."

KEY FINDINGS

The study found a large number of single-person households in the city.

"More than one-third of housing units in New Albany were occupied by a single individual," Johnson said. "This number has also been quickly increasing....We may want to consider building smaller single-family homes that are affordable and manageable for a single individual."

The study also showed a high rate of homeownership among seniors in New Albany.

"The older population in our city — they may be less likely to move to senior facilities," Johnson said. "And that means we need to continue programs that help keep our seniors stay in their homes longer like our [Community Development Block Grant] emergency repair program."

This may also demonstrate barriers to homeownership for younger people, she said.

"We firmly believe that providing homeownership opportunities and reducing barriers for younger generations is crucial for enabling them to have the option to choose to buy a home, rather than being limited to apartment living and renting," Johnson said.

The city's has a low owner-vacancy rate, but this high demand for housing is "met with a limited supply, making it a competitive market for homebuyers and potentially contributing to barriers to homeownership," she said.

This rate indicates that a small percentage of owner-occupied homes are for sale, showing a need for new home construction, Johnson said.

"In a market with a limited supply of homes for sale, some individuals who might otherwise consider buying continue renting not due to personal preference but out of necessity," she said.

The study projected that future demand for owner-occupied homes will exceed demand for renter-occupied homes "pursuant to the availability of such homes," she said.

Although multi-family housing makes up nearly half of the housing units built in the city since 1980, these types of units are also less likely to be owner-occupied, according to data from the American Community Survey.

However, the city has a low proportion of small multi-family housing versus larger multi-family units, suggesting a need for those smaller units.

"These are a range of multi-unit clustered housing types compatible in scale with single-family homes that help meet a growing demand for walkable, urban living, respond to shifting household demographics and meet the need for housing choices at different price points," Johnson said.

New Albany also has a larger number of short-term rentals such as Airbnb as a share of its housing than its peers, Johnson said. There are 104 total short-term rental units in New Albany.

"The presence of short-term rentals may be contributing or may contribute in the future to the lack of owner-occupied housing in the city," she said.

NEXT STEPS

Johnson said the city needs to take "actionable steps to shape the future of our community." This could include reviewing apartment and short-term rental registrations in New Albany, "ensuring that these registrations align with the evolving needs of our residents."

The city can also update its comprehensive plan to take these housing needs into account, she said.

"Our comprehensive plan is the foundational document that guides the long-term vision for New Albany," Johnson said. "It is time to revisit and evaluate this plan to ensure it reflects the current dynamics of our city."

Zoning will also play an important role in the future of housing in the city, she said.

"We will conduct a thorough review and evaluation of our zoning ordinance to ensure that the ordinance encourages responsible development and addresses the demands of our growing population," Johnson said.

Johnson said a "well-planned" strategy will help drive economic growth in the city.

She said housing options need to "meet the changing needs and preferences of our residents" and ensure accessibility. "

The city needs to take a "multifaceted approach" that focuses on both financial attainability and high quality of life, she said.

"When I say accessible housing, I'm talking about an inclusive concept that applies to residents across the entire income spectrum," Johnson said. "The goal is to ensure that everyone, regardless of their economic background, can find a suitable and comfortable home in New Albany."