Homes Beyond Reach: An Assessment and Gap Analysis of Newark's Affordable Rental Stock

KATHARINE L. NELSON, SENIOR RESEARCH FELLOW, AND DAVID D. TROUTT, CLIME DIRECTOR

18 February, 2021

CLiME conducted an affordability and gap analysis of Newark's housing stock and found a severe gap in low-rent units. We estimate that the City needs an additional 16,234 units renting for about $750 per month to meet residents' existing needs.

CLiME’s approach to assessing affordability is rooted in the local context. We calculate a Newark Median Affordable Rent (NMAR) of $763 per month. This is $330 less than Newark’s median market rent, and more than $600 less than Fair Market Rent (FMR), created by the Department of Housing and Urban Development. We also develop a methodological innovation to integrate the City’s rental housing subsidies into the affordability analysis. This procedure, the first of its kind as far as we know, provides a much closer picture of affordability in a City where at least 28% of all units are subsidized.

Unit size matters. Newark’s housing stock of studio and one-bedrooms is more affordable than the City’s stock of larger units. CLiME found that 37% of studios and one-bedrooms are affordable to typical renter households, compared to just 25% of two-bedroom units, and 22% of larger units. An overriding explanation for why the City’s smaller units are more affordable is because of the extra support they receive from rental subsidy programs. The largest gap in affordable units is for units with two-or-more bedrooms. We estimate that the City needs an additional 8,706 two-bedroom units, and 5,893 units with three or more bedrooms, renting for $750 or less to meet the affordability needs of Newark renters.

Read the report in its entirety below:

Homes Beyond Reach: An Assessment and Gap Analysis of Newark's Affordable Rental Stock