Collaborative Solutions: Public and Private Sectors Working Together
Navigating Charlotte's Housing Landscape: Challenges and Opportunities
While the Charlotte Metropolitan Area (CMA) market stands as the largest metropolitan area in the Carolinas, the fourth largest market in the Southeastern US, and one of the fastest-growing metropolitan areas in the country, it remains susceptible to longstanding issues faced by low- to middle-income families nationwide. These issues include unaffordable and inaccessible housing, unsustainable neighborhood revitalization, gentrification, and social and economic immobility.
Charlotte faces a significant shortfall of 34,000 affordable housing units, amounting to a $3 billion-plus problem. The city's affordable housing challenge primarily concerns rental housing rather than homes for sale. Furthermore, Charlotte ranks last among the 50 largest U.S. cities for upward mobility.
The percentage of homes sold for less than $150,000 plummeted from 45% in 2010 to a mere 4% in 2022. Currently, in 2022, a household needs to earn 140% of the Area Median Income (AMI) to afford a median-priced home ($300K).
Despite these pressing challenges, Charlotte continues to be one of the most vibrant and desirable places to live, boasting rapid growth. This growth is primarily attributed to its relatively low cost of living, diverse employment opportunities, and proximity to an international airport and regional tourist attractions. The city has maintained an average annual growth rate of 1.7% over the past decade, which is expected to persist over the next 20 years. By 2040, Charlotte anticipates a population of 1,491,900 residents and 1,080,100 jobs throughout Mecklenburg County.
Who is the “Missing Middle?”
The "missing middle" concept refers to a significant gap in the housing market, particularly affecting individuals and families with middle-income earnings falling within the 80 to 120% of the Area Median Income (AMI) range. This gap arises from a need for more diverse and attainable housing options tailored to the needs of middle-income households. There needs to be housing solutions that cater to those in the middle, as opposed to low and higher-income earners.
The "missing middle" refers to a range of housing options, such as duplexes, triplexes, townhouses, and small-scale apartment buildings, known as "gentle density" housing. These options offer an affordable pathway to homeownership or rental for middle-income families, contributing to neighborhood diversity and revitalization. However, the missing middle is not solely about housing types; it represents households with middle-income earnings from diverse racial and ethnic backgrounds. Certain groups, such as African Americans, face disproportionate challenges due to historical housing policies and socioeconomic factors. Bridging the missing middle housing shortage is crucial for promoting socioeconomic diversity, supporting urban workforce retention, and building inclusive communities. Strategies to address this gap include zoning reforms and developing diverse housing options.
Driving Change through Collaborative Capital: Ascension's Approach to Community Investment
Ascension's commitment to community transformation is anchored in a strategic approach that harnesses a diverse array of financial resources and collaborative partnerships spanning the private, public, and nonprofit sectors. By leveraging private equity alongside philanthropic contributions, governmental support, and program-related investments, we catalyze development initiatives that address pressing community needs. Our efforts are fortified by strategic alliances with municipal, community, and industry leaders, ensuring that our investments are aligned with local priorities and informed by grassroots insights.
Through the synergy of these cross-sector collaborations and capital investments, we maximize the collective impact on our neighborhoods. The infusion of invested and vested capital empowers us to adopt a holistic perspective, establishing robust standards and metrics to gauge the effectiveness and accountability of our initiatives. We firmly believe that the pursuit of social and financial good is inherently intertwined, and as such, our investments are guided by a commitment to generating both tangible social outcomes and sustainable financial returns.
In partnership with our investors and stakeholders, we approach investment decisions with intentionality and patience, recognizing that enduring community change requires steadfast dedication. By aligning social returns with financial returns, we endeavor to foster stronger, more resilient communities where prosperity is shared by all.