Housing in the Nation's Capital 2002

Housing2002NATION’S CAPITALIN THE The Fannie Mae Foundation creates affordablehomeownership and housing opportunitiesthrough innovative partnerships and initiativesthat build healthy, vibrant communities acrossthe United States. The Foundation is speciallycommitted to improving the quality of life forthe people of its hometown, Washington, DC,and to enhancing the livability of the city’sneighborhoods. Headquartered in Washington,DC, the Foundation is a private, nonprofitorganization whose sole source of support isFannie Mae, and has regional offices inAtlanta, Chicago, Dallas, Pasadena, andPhiladelphia.BOARD OFDIRECTORSFranklin D. RainesChairmanJamie S. GorelickVice ChairStacey H. DavisPresident and CEOand DirectorKenneth J. BaconDirectorRebecca R. CulbersonDirectorFloyd FlakeDirectorCharles V. GreenerDirectorColleen HernandezDirectorLouis W. HoyesDirectorAnn McLaughlin KorologosDirectorStewart KwohDirectorRobert J. LevinDirectorWilliam R. MaloniDirectorDaniel H. MuddDirectorJohn SassoDirectorKaren Hastie WilliamsDirectorBarry ZigasDirectorGlen S. HowardSecretaryOFFICERSStacey H. DavisPresident and CEOGlen S. HowardGeneral Counsel and Senior VicePresidentBeverly L. BarnesSenior Vice President,CommunicationsPeter BeardSenior Vice President, KnowledgeAccess and Technology StrategyJames H. CarrSenior Vice President, Innovation,Research, and Community TechnologyAndrew PleplerSenior Vice President, Housing andCommunity InitiativesKevin SmithSenior Vice President, Finance andOperationsIsaac F. MegbolugbeVice President, Research Prepared for Fannie MaeFoundation by the Urban InstituteMargery Austin TurnerG. Thomas KingsleyKathryn L. S. PettitChristopher W. SnowPeter A. TatianHousing2002NATION’S CAPITALIN THETABLE OF CONTENTSCHAPTER 1Introduction and Summary of Findings1CHAPTER 2Economic and Demographic Context6CHAPTER 3Housing Stock and Production13CHAPTER 4Homeownership Market21CHAPTER 5Rental Housing Market30CHAPTER 6Racial and Ethnic Change in City and Suburban Neighborhoods38Authors45Endnotes45Bibliography48Appendixes a-d49 ii|Fannie Mae Foundation/Urban InstituteHousing in the Nation’s Capital 2002Housing in the Nation’s Capital 2002© Fannie Mae Foundation 2002. All RightsReserved.The opinions expressed in this publicationare those of the authors and do not necessar-ily represent the views of Fannie MaeFoundation or its officers or directors. Housing in the Nation’s Capital 2002 Fannie Mae Foundation/Urban Institute|iiiFOREWORDIn late 2000, the Fannie Mae Foundation con-vened several meetings of Washington-areahousing experts to discuss information andresearch needs in the national capital region.Participants in the meetings expressed a com-mon desire for more accessible, detailed, andcomplete housing information for the Districtof Columbia and its region.To help meet this need, the Foundationenlisted the Urban Institute to produce the firstedition of Housing in the Nation’s Capital.Eachyear, this report will assemble and analyze awide array of demographic, economic, andhousing data for the Washington metropolitanarea, with a focus on the District and its neigh-borhoods. The immediate objective of the reportis to inform the public, policy makers, andhousing professionals by providing the mostcomprehensive data and analysis available. Ourultimate goal is to establish the report as afocal point for an ongoing dialogue on housingissues facing the city and its region.In addition to our desire to fill an informa-tion gap, we undertook this initiative for sever-al other reasons. First, the report furthers theFoundation’s special commitment to its home-town of Washington, DC. This commitmenthas long been evident in our investments incommunity-based organizations that expandaffordable housing opportunities and improvethe quality of life in the city. Housing in theNation’s Capitalenhances this commitment byproviding an invaluable source of informationto help guide our investments and those of ourpartners.Our desire to draw on the region’s uniqueconcentration of knowledge leaders providedadditional impetus for the report. MargeryAustin Turner and her colleagues at the UrbanInstitute’s Center on Metropolitan Housing andCommunities exemplify the incredible well-spring of housing expertise in the Washingtonarea. In this report, they have fully employedtheir considerable talents to produce a rich, textured portrait of the region’s housing chal-lenges and opportunities. Many otherWashington-area housing experts played a keyrole in developing the report by serving on itsadvisory board.Finally, we undertook this initiative becauseof our belief that the region is at an importantjuncture in its history. For the first time indecades, the District’s population has stabilizedand is even showing signs of renewed growth.Housing markets in the city and region haverecently displayed considerable vigor. Butamidst these encouraging developments, wecannot forget that housing challenges persist formany area households and neighborhoods.