The Domino Effect of Poverty

Many Athens residents don’t need to look at poverty statistics, food insecurity reports or homelessness rates to recognize the reality of hardship—they feel it every day. Choosing unhealthy food because fresh, organic options are priced out of reach. Passing through downtown Athens and seeing homeless neighbors huddled on benches, asking for money or food. Feeling the weight of rising housing prices as affordable housing becomes more of an anomaly than a norm.

Data measuring facets of poverty like affordable housing, income inequality and food insecurity underscore the harsh reality that many residents face. Though poverty rates have declined in the last decade, Athens-Clarke County still remains one of the most impoverished counties in Georgia, with a poverty rate of about 26%, which is 13% higher than the state average. Household income under $50K takes up 37% of Athens-Clarke County’s income allocation, which is 20% higher than the national average. Meanwhile, Fair Market Rent in Athens-Clarke County, which is the estimated monthly cost for rental property, is more expensive than 92% of the state. Rent prices for a two-bedroom home have increased by about 23% over the course of two years.

This rise in rent prices signals a scarcity in affordable housing. As a result, individuals and families alike spend a disproportionate share of their income on housing, leaving little left over for other necessities. Having to cut corners elsewhere, residents facing these struggles can become prone to food insecurity. Particularly in families, this can cause children who receive neither steady nor healthy meals to struggle with concentration in school. School districts in these high-poverty areas typically receive fewer resources, with low property taxes in impoverished areas resulting in fewer resources than in more affluent neighborhoods. This, in turn, lowers overall education rankings and long-term upward mobility. From there, some struggle to find stable, well-paying jobs, once again making it more difficult to cover unaffordable rent prices.

This domino effect is largely prevalent in Athens-Clarke County, where the food insecurity rate is 18% as of 2023, with 63% of those living with food insecurity below the SNAP threshold. Cedar Shoals High School, one of 3 public high schools in the county, ranks 251st in Georgia high schools with a 24% reading proficiency rate. The cyclical nature of poverty in Athens, juxtaposed with the prestige and wealth generated from the University of Georgia, leaves a stark cleavage between the school and the greater Athens community.

According to the ACC Housing and Community Development Department, about 8,800 renter households are “cost burdened.” Athens-Clark County recently spent about $45 million in local sales tax dollars on a mixed-income development that would replace Section 8 apartment complexes – rental properties that accept rental assistance for low-income families via the Housing Choice Voucher Program. Federal Low-Income Housing Tax Credits (LIHTC) are aiding in funding this project, amongst others. However, the credits – distributed by the Georgia Department of Community Affairs – are difficult to obtain, especially for first-time applicants. A more reliable solution that could walk in lockstep with LIHTC would be to lower development costs directly through zoning incentives, which make affordable housing cheaper to build.

Currently, Athens is facing a simple supply-and-demand issue where there simply is not enough space to build outward housing, with Athens-Clarke County being the smallest county in Georgia. Implementing higher-density zoning incentives, which would allow developers to build at a higher density than normally permitted by zoning laws, would bolster affordable housing development, accommodate more residents within urban areas of Athens and reduce housing costs for low-income households, mitigating food insecurity.

In April 2022, the Athens-Clarke County Mayor and Commission approved voluntary inclusionary zoning, which offers developers incentives to partially create affordable housing units. However, while this ordinance offers a potential offset to the affordable housing shortage in Athens-Clarke County, it lacks the tenacity to fully navigate the issue.

While developers are offered density bonuses and reduced parking requirements, most market-driven developments can simply sidestep affordable housing. This is especially true in a high-demand college town like Athens, where market rents are so profitable that the incentives offered may not offset the loss of renting units at below-median income levels.

Moreover, the voluntary design of the ordinance indicates that the policy may not generate enough affordable housing to shift the housing market. Consequently, since its implementation, the inclusionary zoning ordinance has only been utilized three times. However, other solutions could help expand affordable housing. Building off of the 2022 inclusionary zoning ordinance, Athens-Clarke County could extend those incentives to commercial or single-family properties.

Athens-Clarke County is at a crossroads: it can either ignore the affordable housing crisis or it can bolster its zoning policies and strengthen the livelihoods of Athens residents, so that the city’s local economy does not solely rely on UGA students. The 2022 inclusionary zoning ordinance could be reformed via an increase in tax credit percentage rates, expanding eligibility for the program or even including requirements for inclusionary zoning in high-density areas. This alone could tilt the scales, and the cyclical nature of poverty in Athens could be stopped. Households could start utilizing their income to afford healthier food, invest in our public education and strengthen upward mobility.

Eli King is a second-year at the University of Georgia studying political science and international affairs. He is a member of our labor and economic development policy group.