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?WHY IS
RENT HIGH?
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  2. More density does not guarantee a project pencils out.
?WHY IS
RENT HIGH?
Designing density bonuses

More density does not guarantee a project pencils out.

The pro forma shows small return differences across affordability rules at maximum allowed density.

REDRAWN FROM STUDY DATAFigure 2 · Return on cost at maximum density
Figure 2 · Return on cost at maximum densityThe pro forma shows small return differences across affordability rules at maximum allowed density. Values digitized from Figure 2 in the archived publication; minor reading error is possible.0%2%4%6%Modeled return on cost (%)Affordability optionCurrent rulesProposed rulesVery low inc…Low incomeModerate inc…Mixed
Figure 2 · Return on cost at maximum density. Values digitized from Figure 2 in the archived publication; minor reading error is possible.
Affordability optionCurrent rulesProposed rules
Very low income5.85.7
Low income5.75.6
Moderate income5.65.4
Mixed5.76.1

Source: Terner Center (2020) · Figure 2; PDF p. 4

Data: Values digitized from Figure 2 in the archived publication; minor reading error is possible.

Keep in mind: This is one Oakland-area pro forma, not observed production; financing assumptions can change feasibility.

Share the evidence

More density does not guarantee a project pencils out.

The pro forma shows small return differences across affordability rules at maximum allowed density.

Source
Terner Center (2020)
Figure
Figure 2 · Return on cost at maximum density · Figure 2; PDF p. 4
Redraw data
Values digitized from Figure 2 in the archived publication; minor reading error is possible.
Keep in mind
This is one Oakland-area pro forma, not observed production; financing assumptions can change feasibility.
View values used in redraw
Values used to redraw Figure 2 · Return on cost at maximum density
Affordability optionCurrent rulesProposed rules
Very low income5.85.7
Low income5.75.6
Moderate income5.65.4
Mixed5.76.1
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?WHY IS
RENT HIGH?

Too many people are chasing too few homes. See why—and what communities can do about it.

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