The issue of housing affordability in Chattanooga continues as a storyline running counter to the city’s well-documented and praised resurgence. As the area continues to make lists as a top place for remote work or to start a business, its housing market is becoming increasingly out of reach for many residents.
On Tuesday, Chattanoogans in Action for Love, Equality and Benevolence released its report presenting a possible solution to keep homeownership attainable for area residents who are otherwise being priced out.
In the feasibility study, CALEB advocates for the city to adopt a community land trust, a model in which a managing nonprofit owns the land and uses subsidies to lease it long term to limited-income individuals or families at an affordable rate. Dozens of communities across the country operate such trusts, particularly in areas that are experiencing or have gone through major economic change.
Michael Gilliland, organizer and director with CALEB, said the model addresses the increasing costs of buying a home, which is being driven in part by outside real estate companies and new residents competing for a limited number of homes.
A report last month from the National Association of Realtors found Chattanooga home prices in the last quarter of 2020 increased more than 22% faster than the nation’s average. A separate study from 2020 listed Chattanooga as among the worst cities in the country for affordable home prices for its residents.