Affordable housing is a popular topic everywhere, and Jacksonville is no exception.

Mayor Donna Deegan prefers the term “attainable housing” rather than “affordable housing” and she is paying a lot of attention to the subject.

Housing is affordable when the household pays no more than 30 percent of their gross income for housing costs, including utilities. It is a government definition, so it should be considered a guideline, not an ironclad rule.

How serious the problem is in Jacksonville isn’t clear. According to a comparison of the top 50 cities in the nation done by Zillow, Jacksonville is more “buyer friendly” than all but three other cities – Indianapolis, Atlanta and Charlotte.

Buyer-friendly includes low prices, but also other factors.

Still, it is a real problem for those who struggle to finance a home. Deegan told Eye on Jacksonville that the city is 40,000 units short of attainable housing.

Potential home buyers must consider not only the cost of the home but the cost of money they borrow to pay for it, and the costs of operating and maintaining the home.

Much of the difficulty is because of the federal government, which has pushed the national debt into the stratosphere and expanded the money supply, creating inflation.

The average mortgage interest rate for a 30-year, fixed-rate mortgage as of September was 5.89%, which was the highest average rate since 2008.

Allowing 20 million non-citizens to invade the United States also increases demand for housing.

The problem also is not confined to homes that are sold. Renters are affected as well.

Affordability largely is a matter of supply and demand. Factors include:

• Zoning laws that restrict density (such as single-family–only zoning).
• Lengthy permitting and approval processes.
• Community opposition to new housing (“NIMBYism”).

When demand outpaces supply, prices rise.

Some cities resort to “impact fees” based on the idea that growth has an impact on the services government provides, ignoring the fact that growth also increases the taxes government receives.

With added costs from such devices, builders often respond by focusing on higher-end homes, since cheaper units may not be financially viable.

The best state and local government can do to make housing attainable is to remove obstacles through zoning and permitting changes and keep taxes and fees low.

Deegan said Jacksonville has some of the lowest tax rates in Florida, but she noted that fact is little solace for those who cannot afford to buy a home.

She has been on the topic since taking office in 2023. That year the City Council budgeted millions of dollars early in her term to help with housing, but some funding has been cut back subsequently.

Deegan said her aim is not to simply hand people money but to do what the city can to enable the private sector to supply more lower-cost homes to meet the demand.

As Eye reported earlier, Deegan’s administration has worked to speed up the permitting process, a big development cost factor, and has been successful.

“As we all know, time is money, and a faster, more efficient permitting process means more money in the pockets of everyone along the chain,” Deegan said when she presented her eight-point plan, now fully in place.

Since her effort to streamline the permitting process began, the time for a civil or building permit is issued has been reduced from six months or more to 23 days.

That’s huge.

Deegan deserves credit for doing it, and also for enlisting the aid of experienced developers who do not belong to her political party.

City Hall also is looking forward to using a new law from last year’s legislative session. The 2025 Florida Legislature passed Senate Bill 1730, which allows local governments to approve affordable housing on certain land owned by religious institutions, regardless of the underlying zoning. It is being called the “Yes-in-God’s-Backyard” (YIGBY) policy’ and the local government plans to utilize it, Deegan said.

Deegan said the city also is exploring zoning changes, such as allowing more ADU (additional dwelling units). This could be garages converted to apartments or “mother-in-law houses” behind main units.

There is no shortage of ideas out there. One developer suggested to Eye that the city owns many acres of “recreational” land that is off the tax rolls but not being used for anything. He suggested some might be used for lower-cost housing.

Deegan said she might consider it but does not think the problem in Jacksonville has a lack of land. “We’ve got plenty of it,” she said. She prefers to continue trying to goose market forces by making improvements to the zoning and permitting process and allowing the newly constituted Jacksonville Housing Authority to do its part.

Homes are the largest investment for most people. But it is a mixed bag.

A home is not a real asset unless it is mortgage-free. And it isn’t really an investment unless you ultimately sell it and pocket the money. But then where do you live?

Cities that follow bad policy can make the problem worse. Portland, Ore., once was one of the most affordable places in the nation to live. Now it is one of the most expensive.

Jacksonville has little to learn from Portland and its course of helping to increase the supply of homes is preferable to other alternatives.