How Albany Is Working to Boost Housing Supply
Albany has spent the past year working through a full checklist of housing strategies, all aimed at expanding supply and improving affordability over the long term. Like many cities in the region, Albany has struggled to keep up with demand for affordable homes. When the city adopted its Housing Implementation Plan in 2023, leaders highlighted just how tight the market had become. More than one quarter of renting households were spending over half their income on housing. Increasing supply, especially in the affordable range, became a top priority.
Over the past year, Albany has checked off nearly all the early recommendations from its housing plan. It began with updates to the development code, including changes meant to encourage cottage cluster housing and other smaller formats that fit well into existing neighborhoods.
The city also approved a policy requiring any suitable surplus city-owned land to be considered for housing before other uses. This summer, officials passed a construction excise tax to help generate funding for affordable housing programs. The tax will apply to new residential and commercial construction beginning next year through a phased rollout.
A long-term property tax exemption for low-income housing projects did not move forward. But another incentive, the multi-unit property tax exemption known as MUPTE, cleared the council with the mayor’s tie-breaking vote.
The MUPTE program offers up to 10 years of property tax relief for the residential portion of qualifying multi-unit projects downtown. To use it, developers must show their project would not be feasible without the exemption and must include units affordable to households earning 80 percent or less of the area median income. An in-lieu option also allows developers to contribute funds that support affordable housing elsewhere in the city.
Housing advocates say Albany is taking a more proactive approach than many nearby cities to the widespread problem of affordability and inventory. While there are differing views on how generous incentives should be, the city has now completed the major actions outlined in its 2023 plan. Staff will continue working over the next year on additional updates tied to recent housing legislation from Salem. Albany’s next phase will center on applying these new tools, evaluating their impact and identifying the most effective ways to encourage long-term, sustainable housing growth.
If buying, selling or investing in the Albany area is a possibility in your future plans, understanding how new policies shape supply, incentives and pricing can give you a clear advantage as you plan your next steps. Reach out today, I’m happy to give insights and help position you for success!
