Both a housing shortage and rising rents in the greater D.C. region are becoming problems that present a long-term economic risk, a new report indicates.
From Baltimore through D.C. and down to Richmond, rising housing costs are deterring job seekers and pushing workers to leave for more affordable areas, according to a new report from the Greater Washington Partnership.
Kathy Hollinger, CEO of the Greater Washington Partnership, said the ability to find and afford homes has become a critical issue.
“It has become one of the most material constraints on talent recruitment, retention and long-term economic competitiveness,” Hollinger said.
The group’s housing playbook found that the region is short roughly 390,000 housing units.
Of that shortage, D.C. accounts for the largest share, followed by Baltimore and Richmond. The report said vacancy rates are at historic lows, and about half of all renters in the region are feeling pressed.
“Half of renters are cost burdened, meaning they spend more than 30% of income on housing,” Hollinger said.
Employers are feeling the effects when it comes to hiring, especially for entry and mid-level positions. One way it shows up is when people turn down job offers after doing the math.
“Candidates are declining offers after running basic cost of living numbers,” she said.
To bring about change, the housing playbook calls for zoning reform, which would allow more housing to be built near job centers and transit. It also calls for faster and more predictable permitting to speed up development.
“Plans don’t move housing, but approvals do,” Hollinger said.
The report also stressed the importance of preserving existing affordable housing, which it said can often be done more quickly and at a lower cost than building new housing.
The playbook encourages not just local governments, but also employers, to invest in solutions. Hollinger said some major corporations, including JPMorgan Chase and Amazon, have already invested in the region.
Hollinger said companies aren’t treating housing investments as charity, but as a practical way to support their workforce and keep their businesses running.
“This is not philanthropy on the part of private sector. For private sector, it’s workforce infrastructure,” she said.
Without action, Hollinger warned the region risks losing more than just workers.
“If we are not thinking about how we collaboratively address this issue, we are at risk for losing more talent; not only talent, but families,” she said.
She said that would also mean the greater D.C. region risks losing its future leadership pipeline.
