DC’s Affordability Policy Based on the “AMI” is Broken

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During the pandemic in 2022, GGW’s Libby Solomon covered how DC’s “affordability” index is based on the DMV’s ever increasing Area Median Income (“AMI”). See here: https://ggwash.org/view/81935/here-are-dcs-new-affordable-housing-income-limits-for-2021

However, what GGW consistently forgets to do is make some solid conclusions that may help the people struggling to stay in their hometown of DC. For example, using Ms. Solomon’s insights and links in her post above combined with the data points below (all cited and sourced to original DC government reports), we conclude:

DC’S AFFORDABILITY POLICY IS BROKEN

  1. Any “affordability” policy in DC that relies on the annually increasing Area Median Income (“AMI”) or functional equivalent Median Family Income (“MFI”) is broken;
  2. The policy and results become more and more broken as wealthy residents in the region become wealthier and as the DMV welcomes more and more new wealthy people.
  3. As the AMI continues to trend upwards, DC becomes less affordable and gentrification increases. This means the growing displacement of lower income residents which pushes up the AMI even faster fueling even more gentrification.

Looking at the AMI Numbers — DC’s affordability is becoming less and less affordable as the AMI increases annually

See the following data points over time:

Year; AMI
2011; 106,100
2013; 107,300
2015; 108,600
2018; 117,200
2020; 126,000
2021; 129,000
2022; 142,300
2023; 152,100

Conclusion:

Between 2013 to 2023, the AMI has increased $44,800, a 42.2% increase over ten years. This means the available pool of “affordable” units becomes less and less accessible by those who need it most as wealthier DC residents (those making more than two to three times the minimum wage) can qualify for DC’s limited supply of so-called “affordable” housing units.

The U.S. Census numbers show the results: A substantial number of lower income families and residents have been displaced from the city (60,000 Black residents over the past two decades) under DC’s current broken “affordability” policy based on the ever increasing “AMI.”

Ward One leads in Black displacement, with 25% of the Black population made gone over the past ten years as the AMI is really just starting to soar.

AMI Sources:

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