Many Essential Workers Can't Afford Housing in Brunswick County; Similar Problems Exist Throughout the State
Posted: 07-27-2007 : RALEIGH, N.C.

RALEIGH, N.C. - People who perform essential work - teachers, law enforcement officers, firefighters, emergency medical and rescue professionals, and healthcare workers - are finding it hard to buy homes or move into rental housing in Brunswick County because of rapidly escalating housing prices, according to a study done by University of North Carolina researchers.

The study, commissioned by the North Carolina Association of Community Development Corporations and done by UNC-Chapel Hill's Center for Urban and Regional Studies, says that the lack of workforce housing "has a variety of negative impacts, including difficulty in recruiting and retaining employees, and longer commuting times that result in increased traffic congestion and more air pollution."

Susan Perry Cole, President and CEO of the North Carolina Association of CDCs, said, "While this study focused just on Brunswick County, we believe the housing situation for essential workers is reaching a crisis level in many other fast-growing counties, especially on the coast and in the mountains. Retirees and second-home buyers are causing housing costs to rise far beyond the reach of the men and women who provide essential services.

"In many cases, teachers, police, firefighters and other municipal and county employees cannot afford to live in the communities they protect and serve. That is a serious problem that has developed in recent years but has not received much attention. Our organization hopes that this study of one county will awaken people across North Carolina and prompt local communities to look for solutions," Cole said.

She added, "While there are commonalities in each community, the situation is different to some degree in every locale, and local communities must develop solutions that work for them. Our association is not recommending specific solutions but, instead, is urging people to come together to talk about their local situation and work toward the common good."

The study, believed to be the most comprehensive survey of workforce housing in a single county, was done in collaboration with Countywide CDC, a community development corporation that focuses on housing needs in Brunswick County.

The study, conducted by Dr. William Rohe and Dr. Spencer Cowan, found that the average wage in Brunswick County for all occupations increased at an annual rate of 2.5 percent between 2000 and 2005. The average wage in Brunswick County in 2005 was $29,692, but the researchers noted that wages for entry-level teachers, police and sheriff's officers, practical nurses, and many other essential workers were well below this average.

The median household income in the county increased from $35,888 in 2000 to $36,946 in 2005, an average annual growth rate of only 0.6 percent.

However, the cost of housing escalated at a much higher rate. The median value of all owner-occupied housing increased at an average annual rate of 7.9 percent during the same period. For rental units, the annual rate of increase was 5.3 percent.

The study also showed that the number of households in Brunswick County paying more than 50 percent of their incomes for housing increased from 3,153 in 2000 to 5,149 in 2005. If current trends continue, by 2015 there will be 7,246 households paying more than 50 percent of their incomes for housing. Thirty percent of income is the standard amount considered acceptable for housing. In 2005, almost 4,000 households with incomes between $20,000 and $50,000 reported paying more than 30 percent of their income for housing.

Rohe, the lead author of the report, said, "Interviews with representatives of major public, private, and nonprofit organizations in Brunswick County indicate widespread recognition of the need to expand workforce housing opportunities in the county. Homes that sell for less than $200,000 and rental units - including townhomes and apartments - were said to be in particular demand.

"When asked about the impacts of the shortage of workforce housing, the most frequent responses were difficulty in recruiting and retaining employees and the loss of young people who could not afford housing in the county," Rohe said.

"The major barriers to providing more workforce housing were said to be the rapid increase in land, construction and infrastructure costs, and a lack of interest among developers in building workforce housing," he said.

The report said, "If Brunswick County is to remain a place that is home to a wide range of working families, concerted action to increase the supply of workforce housing is needed and needed now before the county is largely built out. This action must involve county and municipal governments, nonprofit organizations, and private businesses working together to create an environment and community vision that encourages and supports the development of workforce housing."

In Brunswick County, located south of Wilmington and bordering South Carolina, the population is exploding, and the number of households increased by almost 10,000 from 2000 to 2005, from 30,438 to 40,090. Estimates are that by 2015, there will be another 10,000 households in the county.

The North Carolina Association of Community Development Corporations was founded 17 years ago to strengthen the state's economy and build a better tomorrow for all North Carolinians by enhancing community development corporations (CDCs) as they build prosperous communities. It is headquartered in Raleigh and works with CDCs throughout North Carolina. www.ncacdc.org

The Center for Urban and Regional Studies is an interdisciplinary research center focused on issues and problems faced by our nation's cities and regions. Created in 1957, it is one of the oldest university-research centers in the country. curs.unc.edu

For more information, contact
Carroll Leggett at Ralph Simpson & Associates 336.761.0711
or Carroll@ralphsimpson.com