Housing in the Nation's Capital 2009

Housing in theNation’s C apital2009Jointly Sponsored by The Urban Institute andFannie Mae Ayan AddouMetropolitan Washington Council ofGovernmentsMarni Allen21st Century School FundKevin AndersonCity First HomesJosephine BakerDistrict of Columbia Public CharterSchool BoardSusan BantaCouncil of the District of Columbia,Office of Policy AnalysisHella Bel Hadj AmorDistrict of Columbia Public SchoolsJennifer BergerAARP—Legal Counsel for the ElderlyMichael BodakenNational Housing TrustDavid BowersEnterprise Community PartnersPatrick CostiganThe Community Builders, Inc.Kate DavidoffMetropolitan Washington Council ofGovernmentsLouis DavisAARPMaribeth DeLorenzoDistrict of Columbia Department ofHousing and Community DevelopmentMichael DiamondGeorgetown University Harrison Institute for Public LawKerry DigginAARP—Legal Counsel for the ElderlyLeila Finucane EdmondsDistrict of Columbia Department ofHousing and Community DevelopmentLessie EvansEvans Consulting and Development LLCDavid GarrisonThe Brookings InstitutionMosi HarringtonHousing Initiative Partnership, Inc.Mary HunterHousing Initiative Partnership, Inc.Elijah JohnsonPrince William County Office ofHousing and Community DevelopmentMichael KellyDistrict of Columbia Housing AuthorityAlicia LewisMetropolitan Washington Council ofGovernmentsSue MarshallCommunity Partnership for the Prevention of HomelessnessJohn McClainGeorge Mason UniversityAmy MixAARP—Legal Counsel for the ElderlyOramenta NewsomeNeighborhoodInfo DC/LISC-DCBenjamin OrrThe Brookings InstitutionSam ParkerPrince George’s County PlanningBoard, Maryland-National CapitalPark and Planning CommissionCraig PascalPNCDanilo PelletiereNational Low Income HousingCoalitionRobert PohlmanCoalition for Nonprofit Housing andEconomic DevelopmentKehinde PowellFairfax County Department ofHousing and Community DevelopmentAlice RevelDistrict of Columbia Housing AuthorityArt RodgersDistrict of Columbia Office of PlanningGeorge RothmanMANNA, Inc.Peggy SandCreative ConsultantsHarry SewellDistrict of Columbia Housing Finance AgencyMarian SiegelHousing Counseling Services, Inc.Cheri VillaNorthern Virginia Family Services(formerly of SERVE, Inc.)Housing in the Nation’s Capital 2009Published since 2002, Housing in the Nation’s Capitalis an annual series on emerging housing trends in the Washington,D.C. metropolitan area and the District of Columbia. The report provides the region with the facts needed to inform anongoing dialogue among policymakers, housing professionals, and the public about the housing challenges facing ourarea. Reports and data from previous years are available at http://www.urban.org/center/met/hnc/. The Urban Institute would like to thank the Housing in the Nation’s Capitalcommunity advisory board, which plays acritical role in shaping the analysis plan, helping with interpretation of the results, and incorporating the findings intosubsequent policy discussions and decisions. All errors and omissions remain the responsibility of the authors.Advisory Board List About The Urban Institute and Fannie Mae......................2Acknowledgements............................................................3Key Findings........................................................................4Introduction..........................................................................6Chapter 1 Regional Economy Outpacing the Nation..........................8Chapter 2 Sales Market Sinks, but Affordability Problems Persist......14Chapter 3 Foreclosures Increasing and More to Come....................24Chapter 4 Ripple Effects Threaten Residents and Neighborhoods .....38Chapter 5 What Can the Region Do about the Crisis?.....................48Endnotes............................................................................64References.........................................................................68Appendix A: Mortgage Performance Indicators by County....71Appendix B: Geographic Definitions....................................72Appendix C: Data Resources..............................................73The Urban Institute1Housing in the Nation’s C apital2009Kathryn L.S. PettitLeah HendeyG. Thomas KingsleyMary K. CunninghamJennifer ComeyLiza GetsingerMichel Grosz© The Urban Institute 2009 All rights reservedTHE URBAN INSTITUTEWASHINGTON, DC About The Urban InstituteThe authors are researchers at The Urban Institute,a nonprofit organization nationally known for its ob-jective and nonpartisan research and educationaloutreach on social, economic, and governanceproblems facing the nation. Within the Institute, theywork in the Metropolitan Housing and CommunitiesPolicy Center, whose work concentrates on factorsthat shape the quality of life in communities, the op-portunities they offer residents, and the effectivenessof federal, state, and local public policies that governurban housing and neighborhoods.The views expressed are those of the authors andshould not be attributed to The Urban In