Stein, NC lawmakers push housing affordability proposals

North Carolina Gov. Josh Stein signed an executive order Tuesday aimed at boosting housing supply and affordability across the state. 

The order calls on state agencies to prioritize housing access and creation in relevant policies and planning. It also establishes a framework for state agencies to align their housing goals and coordinate housing-related resources, programs and services. And it directs state agencies to work with local governments and builders to find ways to increase housing options. 

Janneke Ratcliffe, who served as vice president of the Housing and Communities Division for the Urban Institute, has been hired to oversee the initiative — and define the state’s housing strategy — in the new role of senior advisor for housing policy.  

Ratcliffe is tasked with working alongside local governments, state agencies and private-sector partners to develop long-term housing solutions.

“You all have heard the expression that if you build it, they will come,” Stein said at a news conference announcing the intiative. “Turns out, in North Carolina, if you don't build it, they will still come. People want to live and work here, but we simply do not have enough homes to meet that growing demand.” 

Stein says too many people in North Carolina are struggling to afford rent or homeownership. The state faces a projected shortage of more than 750,000 housing units by 2029, according to Stein’s office. The administration also said approximately half of renters in the state spend more than 30% of their income on housing, a threshold commonly used to define housing cost burden.

“This executive order directs a whole-of-government approach to get more homes of all types built and make homeownership more accessible and affordable for North Carolinians,” Stein said in a statement.

Ratcliffe said the state needs to focus more on housing variety to serve the needs of this fast-growing state.

“We can't just build more high-end homes and luxury apartment buildings,” she said at the news conference. “…We need starter homes, so that our young households can put down roots right here in our communities.”

The order highlighted affordability concerns among teachers, seniors and military families. Stein’s office said teachers in 23 North Carolina counties don’t earn enough on average to afford fair market rent where they work.

The move comes as lawmakers at the General Assembly debate several housing-related bills this session aimed at addressing the state’s growing affordability challenges. The state’s fast-growing population is driving up demand for housing and competition for land among developers, which is also driving up development costs. 

Lawmakers this week are debating a proposed constitutional amendment that would cap property tax increases. Lawmakers are also expected to debate a bipartisan measure, HB 1072, that would create a revolving loan fund designed to help affordable housing developers pay for costly infrastructure and predevelopment expenses, including site preparation, utility connections and water and sewer work.

The effort is being led by Republican Rep. John Bell, R-Wayne, and Democratic House Minority Leader Rep. Robert Reives, D-Chatham. They say upfront costs are often a major barrier preventing affordable housing projects from moving forward, especially for nonprofit developers and projects in rural communities.

“We can't simply ask how to make homes affordable after they're built,” Reives said earlier this month. “We've got to figure out what's preventing them from being built at all, and that's what this bill takes seriously.”