Housing in the Nation's Capital 2006

Fannie Mae Foundation4000 Wisconsin Avenue NWNorth Tower, Suite OneWashington, DC 20016-2804t: 202 274 8000 f: 202 274 8111www.fanniemaefoundation.orgwww.knowledgeplex.orgFMF R 269Fannie Mae FoundationHousing in the Nation’s Capital 2006 Board of DirectorsDaniel H. MuddChairmanKenneth J. BaconVice ChairmanStacey D. StewartDirectorFloyd FlakeDirectorStephen GoldsmithDirector Charles V. GreenerDirectorColleen HernandezDirectorLouis W. HoyesDirectorAnne KelsoTreasurer and DirectorStewart KwohDirectorRebecca R. SenhauserDirectorKaren Hastie WilliamsDirectorBarry ZigasDirectorKevin P. SmithSecretaryOfficersStacey D. StewartPresident and CEOPeter BeardSenior Vice President, Communications,Strategy and InformationJames H. CarrSenior Vice President, ResearchEllen LazarSenior Vice President, Housing InitiativesLisa Mallory-HodgeSenior Vice President, Policy and ConsultingKevin P. SmithSenior Vice President and Chief Administrative Officer© Fannie Mae Foundation 2006.All Rights Reserved.The Fannie Mae Foundation, through its publications andother programs, is committed to the full and fair expositionof issues related to affordable housing and communitydevelopment. The opinions expressed in this publicationare those of the authors and do not necessarily representthe views of the Fannie Mae Foundation or its officers ordirectors.The Fannie Mae Foundation creates affordable homeownership and housing opportunities throughinnovative partnerships and initiatives that build healthy, vibrant communities across the UnitedStates. The Foundation is specially committed to improving the quality of life for the people of its hometown, Washington, D.C., and to enhancing the livability of the city’s neighborhoods. TheFoundation, a private nonprofit organization supported solely by Fannie Mae, has regional offices inChicago; Dallas; and Pasadena, Calif. Foreword. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2About the Authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Acknowledgments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Chapter 1Housing and Schools in a Booming Regional Economy . . . . . . . . . . 17Chapter 2Prosperity and Change in the District of Columbia . . . . . . . . . . . . . . 25Chapter 3Housing Market Update. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Chapter 4Schools and Changing Neighborhoods . . . . . . . . . . . . . . . . . . . . . . . 41Chapter 5Strategic Opportunities: Strengthening Schools and Neighborhoods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Endnotes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67Appendix A: Geographic Definitions. . . . . . . . . . . . . . . . . . . . 68Appendix B: Data Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . 71Prepared for the Fannie Mae Foundation by the Urban InstituteMargery Austin TurnerG. Thomas KingsleyKathryn L. S. PettitJennifer ComeyMark WoolleyBarika WilliamsJessica Cigna2006Housing in the Nation’s CapitalHOUSING IN THE NATION’S CAPITAL 2006 Schools and housing have dominated political discourse in the Washington region during thiselection season. A May 2006 poll conducted by a District mayoral candidate, for example, rankedthese issues first and second, respectively, among city voters. These poll results should come as no surprise: Home and school shape our lives and our aspi-rations. And recent developments in the Washington metropolitan area give these issues evengreater weight. Home prices have spiked and affordability has plummeted. Strong, sprawlingpopulation growth has pressured school systems and strained local budgets. A rising demandfor more affordable housing coincides with a rising demand for better schools. Largely omitted from the public dialogue on these issues, however, has been considerationof the connections between schools and housing. This year’s Housing in the Nation’s Capitalfills this gap. It explores the intersections among public schools, housing, and neighborhoodrevitalization in the District of Columbia and the greater Washington metropolitan region. Itaddresses thorny issues and answers pressing questions: How many public school studentswill be generated by the thousands of new housing units under construction or planned in theDistrict? Do school segregation patterns mirror the racial divides of residential neighbor-hoods? Can school employees afford to live in the communities they serve? What housingand education p