Real estate
BY SHELBIE HAMILTON
A recently published update on the city of McKinney’s housing needs assessment showed an increased need for a ordable housing units as well as other changes in the city’s housing a ordability. The initial assessment of the city’s housing stock was completed by Root Policy Research in 2020. Three years later, city sta have worked with the researchers to update the study using data from recent years to identify changes in both homeownership and rental trends. The updated study results show an increasing need for more a ordable rental units. The amount of homeowners in McKinney also decreased as home prices continue to rise. City sta are using the updated information to guide a ordable housing strategies going forward, said Janay Tieken, McKinney director of Housing and Community Development. Housing prices pose challenge
The details
making over $75,000 annually, according to the study. The gap and surplus are both determined by consumer demand for units in each price range. “People that are earning more than $75,000 can a ord a more expensive unit but they tend to take those units that should be for the [people earning $50,000 to $75,000] and they’re saving their money to ... purchase a house,” Tieken said.
There is a growing need for rental units in a variety of price ranges across McKinney, according to updated study results. McKinney’s housing stock has a gap of 5,145 rental units that are considered a ordable to households earning less than $35,000 annually. There is also a surplus of more than 3,600 rental units that are considered a ordable for households
Median rental rates Collin County cities have seen steady increases in rental rates over the past decade. McKinney has seen lower median rent costs in recent years compared to nearby cities, according to the study.
2010
2018
2021
$963
$1,391
$1,559
Key:
Collin County
SOURCES: CITY OF MCKINNEY COMMUNITY IMPACT
Diving in deeper
Of the homes sold in McKinney in 2019, 63% were priced between $250,000-$400,000. In 2022, only 17% of homes sold fell within the same price range, indicating an uptick in average home prices across the city, according to the study. Over 50% of the homes sold in McKinney in 2022 were priced over $500,000, according to the study.
Study results also showed fewer McKinney residents are homeowners compared to homeown- ership rates assessed in 2018. The city’s overall homeownership rate decreased three percentage points to 64% between 2018 and 2021. Homeowners making between $25,000 and $75,000 saw the largest decreases in homeownership rates.
Newsome Homes is an a ordable housing development in East McKinney.
SHELBIE HAMILTON COMMUNITY IMPACT
Looking ahead
"We want to provide a broad range of housing choices for all of our residents, whether they're young families looking to get into an ownership product
own a home on the land. Council members allotted $1 million for the program at an August 2022 meeting. Another program under development is a grant-funded gap program that will help people on xed incomes and at risk of being housing cost burdened, Tieken said. The program will pay for the gap between 30% of a person’s monthly income and their housing cost.
City sta are working to address a ordable housing challenges by using strategies approved by City Council members. One recently approved program is the Community Land Trust. The program, which is still in development, will allow the McKinney Housing Finance Corporation to own land and use long-term ground leases for homes on the land, Tieken said. The trust can make it more a ordable for residents to
or they're retired looking to downsize into a smaller ownership product, or if they're renting," JANAY TIEKEN, MCKINNEY DIRECTOR OF HOUSING AND COMMUNITY DEVELOPMENT
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MCKINNEY EDITION
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