2017 Symposium Industry Report: Pay for Success

qualified census tracts in the poorest areas. On the surface, these two clauses may seem unrelated and equitable, but demographically, these exempt tracts often exhibit high levels of segregation. 66 Studies find that most LIHTC units are built in low-income neighborhoods, where land prices are cheaper, but rates of segre- gation are higher. 67 In addition, scholars have found that the HOPE VI program has done little to promote desegregation among original residents. 68 Providers and local governments must be cognizant of the social effects of placing afford- able housing units in certain areas, and should work together to combat racial discrimination and segregation within our neighborhoods and communities. Millennials and the Housing Market Numbers fail to reflect the increasing number of millennials who return home to live with their parents because they cannot find affordable housing. Millennials are facing an increasingly unaffordable housing market, especially in urban areas. Studies find that a sizable majority of young graduates in their early 20s are “silently cost-burdened,” forced to move back home or live in overcrowded housing to save on housing costs. Despite sizable reductions in unemployment rates since the Great Recession, the percentage of 18- to 34-year-olds who have returned home has steadily risen to 26%. 69 Among 25-year-olds, the rate of at-home living increased 63% from 2000 to 2013. 70 In addition, 48% of millen- nials live doubled up with roommates or family members. Credit report stud- ies show student loan debt is a significant deterrent for millennials in starting their own households, while delinquencies and low credit scores also keep young adults tethered to their parents’ homes. 71 Because young adults are vulnerable to labor market trends and generally lack sufficient capital buildup and high credit scores, an increasing percentage of millennials are cost-burdened—about 69%. A 2016 national survey by NHPF of 1000 Americans ages 18 to 34 found that:

• 7 6% of millennials have compromised to find affordable housing.

Of those who compromised:

• 46% live with parents or family • 41% live with a roommate • 43% have put off saving for the future • 3 6% live further away from schools and jobs to find cheaper housing, and • 30% have put off home ownership entirely. 72

The Elderly and the Housing Market Senior citizens are a high priority for access to affordable housing because they

24 Pay for Success & Affordable Housing | Stefano Rumi

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