Only Six Percent of Housing Under Construction in Oakland Is Affordable – California News

Only Six Percent of Housing Under Construction in Oakland Is Affordable – California News

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  • 11th and Jackson, one of the few affordable housing developments built recently in Oakland.

According to a new City of Oakland report, there are 18,793 housing units in the city’s development pipeline, and 2,781 of these homes are already under construction.

But only 170 of the under-construction homes — 6 percent of the total — are being developed using tax credits or other financial tools to keep rents at affordable levels.

Meanwhile, the average market-rate rent for a one bedroom apartment in Oakland has risen to $2,400 per month, a level that’s only considered affordable for people who earn upwards of $86,000 per year.

Half of Oakland’s households earn just $54,618 per year, according to the U.S. Census.

While Oakland’s thousands of soon-to-be-built market-rate homes should help address the region’s supply-demand imbalance, it won’t do much to help low-income renters who rely on subsidized housing for shelter.

The report notes that things could get worse due to uncertainty about the federal tax credits used by developers to finance affordable housing. According to the report, “the tax credit market has been volatile due to pending tax reform efforts since the change in national leadership. The value of credits is decreasing,…

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