On this week's episode of Behind the Headlines on WKNO/Channel 10, host Eric Barnes is joined by Daily Memphian reporter Bill Dries and a panel of local housing leaders to discuss the challenges and solutions surrounding affordable housing in Memphis. Guests include Roshun Austin, President and CEO of The Works, Inc.; Amy Schaftlein, Executive Director of United Housing; and Ashley Cash, Director of Memphis Housing & Community Development.
The conversation starts by defining "affordable housing" and clarifying misconceptions.
Austin explains how affordable housing is less about the physical structure and more about its intended occupants—specifically, individuals and families earning 80 percent or less of the area's median income.
The distinction between affordable housing and public housing is often a source of confusion, particularly when people mistakenly equate the two.
Public housing is designed for households earning 30 percent or less of the median income and is owned and managed by federally mandated housing authorities. In contrast, affordable housing is typically developed by private and nonprofit organizations with government support.
Cash emphasized the broad range of people who benefit from affordable housing. "It can be a single mom, it might be a senior, it might be a police officer, it might be a teacher, it might be a young couple starting out."
Still, the panelists agreed that building affordable housing at the scale Memphis needs (estimated at more than 30,000 to 40,000 units) remains a significant challenge.
Austin pointed out that construction costs have risen by approximately 20 percent year over year, mainly driven by labor. She emphasized that only a small percentage of new homes are being constructed within an affordable price range. "You're talking over $200,000 to build a house that you won't be able to get that much out of," she said. "And the city unfortunately doesn't have as [many] entitlement funds as it had 20, 30 years ago. It's like a sixth of what we used to get."
Adding to the pressure are national investment firms like BlackRock that purchase large volumes of housing, often outcompeting local developers.
"They're able to go and buy 100,000 units [by buying subdivisions], and they're doing it with debt coverage loans. And so, they need to maximize their revenue so that they are covering their debt, servicing their debt, and they're able to maximize their profits for their shareholders. And so, we're competing against that," Austin said.
Schaftlein noted that building within the city is often complex and expensive due to the challenges of infill development. "You're working in scattered sites... even if you have a nice little plot of acreage, where are the utilities? Is it still there? Is there sewer taps?" she said.
Policy changes have also made an impact. For instance, Memphis Light, Gas and Water has revised its affordability guidelines and now permits developers to hire their own approved contractors, which helps to accelerate project timelines. Austin said these changes are long overdue, bringing policies “into this decade and not four decades ago.”
United Housing is also testing new construction technologies, such as 3D-printed homes, to lower costs and improve housing durability. "We've got to start looking at different ways to build," said Schaftlein.
The panel also acknowledged the lingering stigma around rental housing. But as Cash noted, renting is essential for many individuals. "People are at all different stages of life," she said. The stigma, she added, often stems from concerns about single-family homes being converted into rentals where property owners may not invest in proper upkeep, raising fears among neighbors about declining property values or neighborhood stability.
Addressing those concerns while expanding access to quality rental housing, Austin shared that The Works, Inc. and its nonprofit partners now control more than 450 parcels in the Klondike neighborhood. Using a mix of scattered-site rentals, multifamily developments, and land trusts, the group is working to rebuild a community with a healthy mix of housing options.
"We're doing the spectrum," she said. "It's what a neighborhood should look like. It shouldn't be made up of one thing."
As Memphis faces an increasing demand for affordable housing, leaders emphasize that progress relies on public investment, policy reform, and ongoing collaboration between city agencies and community-based developers.
