Unsubsidized, low-cost rental housing is a significant source of affordable housing for Houston households, but the supply is declining as units fall into disrepair or are redeveloped into more expensive units.
An analysis from the Kinder Institute for Urban Research emphasizes the importance of “naturally occurring affordable housing,” or NOAH, in Houston, which make up 85 percent of Houston’s regional housing stock. NOAH is defined as “low-cost rental housing … offered by the private market [that] does not receive federal housing subsidies” but serves households that would qualify for assistance.
More than half of these properties in the Houston area are in “average or worse condition” and require maintenance or renovations, which could result in increased rent costs. “Additionally, rising property values in central Harris County and Houston make NOAH properties subject to gentrification, especially in neighborhoods that offer a wealth of amenities.”
According to the analysis, NOAH is currently the primary source of housing stock for low-income Houston households, but its nebulous status and tendency to appear and disappear with market trends make it difficult to identify and preserve. The authors suggest using Houston’s tax increment reinvestment zones (TIRZs) to preserve NOAH by helping to fund repairs and maintenance. “TIRZ programs, a form of value capture to encourage investment in distressed neighborhoods, often devote about 25%-30% of their funds toward affordable housing construction or renovation.”
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