A recently published update on the city of McKinney’s housing needs assessment showed an increase in need for affordable housing units as well as other variations in housing affordability and the city’s demographics.

How we got here

The initial assessment of the city’s housing stock and the availability of affordable housing was completed by Root Policy Research in 2020. The first iteration of the study identified a gap of 3,716 affordable housing units in the city’s housing stock for households making less than $35,000 annually, according to city documents.

The top four housing needs in McKinney outlined in the 2020 assessment included adding more affordable rentals for residents earning less than $35,000, starter homes and workforce housing priced at or below $200,000, increased housing product diversity, and strategic redevelopment and community improvements.

Three years later, city staff has worked with Root Policy Research to update the study using data from recent years to identify changes in demographic and housing market trends.

The details

Some of the key changes identified include decreased homeownership rates and increased home prices.
  • Rental rates: Between 2018 and 2021, the percent of renters making over $100,000 annually increased 4% to 27% of all renters. The percent of renters making under $20,000 annually decreased 5% to 15% of all renters.
  • Homeownership rates: The city’s overall homeownership rate decreased three percentage points to 64% between 2018 and 2021. Homeowners making between $25,000-$75,000 per year also saw decreases in homeownership rates.
  • Home prices: Of the homes sold in McKinney in 2019, 63% were priced between $250,000-$400,000. In 2022, only 17% of homes sold fell within the same price range.
  • Gaps in rental units: The study identified a gap of 5,145 units that are considered affordable to households earning less than $35,000 annually. This is an increase from the gap in affordable rental units reported in 2018.
  • Median rent: The city’s median gross rent increased nearly 15% from $1,332 in 2018 to $1,530 in 2021. Despite the increase, the median rental rate was lower than median rents in neighboring Frisco, Plano and Allen as well as the average rate for Collin County.
Also of note

The updated study included data on demographic changes in McKinney over the past decade.

McKinney grew in population by 55% from 2010 to 2021, outpacing nearby Allen and Plano as well as surpassing the Collin County average, according to the study.
The city has also seen a 21% decrease in the share of non-Hispanic white residents since 2000. In the same time period, the percentage of Asian residents has increased from 2% to 13%, and the portion of African American residents has seen similar growth, increasing from 7% in 2000 to 15% in 2021.

Median income rates have also increased for both homeowners and renters in McKinney, according to the study.

Looking ahead

City staff is working to address affordable housing challenges by using strategies approved by City Council members.

One recently approved program is the Community Land Trust. The program, which is still in development, will allow the McKinney Housing Finance Corporation to own land and use long-term ground leases for homes on the land, said Janay Tieken, McKinney director of housing and community development.

This strategy can preserve affordability for residents who own homes on the land, according to city documents. Council members also voted to designate $1 million for the program at an August 2022 meeting.

“The Community Land Trust, with the ability to buy down the median price of the home in order to provide housing to first time homebuyers ... making up to 120% of area median income, I think that's really going to make a difference and make those homes affordable for those buyers,” Tieken said.

McKinney City Council also recently approved a gap program, Tieken said, to help individuals on fixed incomes pay the gap between 30% of their monthly income and the cost of their housing.

The grant-funded program will provide individuals funding for 24 months and up to $10,000 per year per household. The program will help those at risk of being housing cost burdened, including seniors and people with disabilities, she said.

“We see so many people whose income from [Supplemental Security Income] or from Social Security or other sources is $1,200 a month, and they're in a tax credit apartment so they're in a subsidized apartment, but their rent is still $900 a month,” Tieken said. “That doesn't leave much for transportation, medicine, food, any of those things.”

Quote of note

“[This] is not unique to McKinney, and we're actually in a little bit better situation than a lot of other places. ... We want to provide a broad range of housing choices for all of our residents, whether they're young families looking to get into an ownership product or they're retired looking to downsize into a smaller ownership product, or if they're renting,” Tieken said. “We want people to be able to live in McKinney for their whole life and have those products available.”

To see the full Housing Needs Assessment, visit www.mckinneytexas.org/233/housing-services.