Densification – the intentional increase in the number of people in urban areas living in smaller homes that are closer together. Advocates say that it promotes affordable housing, but where is the proof? An examination of housing affordability reveals that the most densely populated cities are often the least affordable.
You don’t have to be a world traveler to see the relationship between density and housing affordability. Just consider Los Angeles, San Jose, and San Diego. They also made the list of least affordable cities, and they are among California’s most densely populated.
What do Hong Kong, Vancouver, Sydney, Melbourne, Toronto, and San Jose have in common? They are among the most unaffordable cities in the world. The Demographia International Housing Affordability Report rates housing prices in relation to income by calculating the price-to-income ratio as the median house price divided by the gross median household income. A ratio of 5.1 or greater is deemed severely unaffordable. According to the 2023 edition, “Hong Kong is the least affordable market, with a median multiple of 18.8. Sydney was the second least affordable at 13.3, Vancouver at 12.0, Honolulu at 11.8, San Jose at 11.5, Los Angeles 11.3, Auckland 10.7, Melbourne at 9.9, Toronto at 9.5 and San Diego at 9.4.“
These severely unaffordable cities are also among the most densely populated. Hong Kong is the eighth most densely populated city in the world. Sydney and Melbourne are the most densely populated cities in Australia, and Toronto is one of the most heavily populated cities in Canada. The population of the city of Vancouver increased by 60% between 1961 and 2016 and its housing affordability deteriorated dramatically.
But you don’t have to be a world traveler to see the relationship between density and housing affordability. Just consider Los Angeles, San Jose, and San Diego. They also made the list of least affordable cities, and they are among California’s most densely populated.
Locally, since 2013 when City Council amended Title 14 of the Philadelphia Code and passed bill 120889, Registered Community Organizations (RCOs) have been convening public meetings when owners want to use their properties in ways zoning doesn’t permit. Project after project involves converting single family rowhomes into duplexes and triplexes or constructing apartment buildings on lots zoned for single family housing. In short, we are experiencing densification.
The Demographia report listed Philadelphia as one of the 20 most affordable cities with a 4.1 ratio. Let’s fight to keep it that way. This data clearly shows that increasing density will not make housing in Philadelphia affordable. Let’s resist densification, protect our green spaces, and preserve the rich character of our neighborhoods. Together we can find a better way to provide clean, safe, affordable housing for all.