Town of Apex
Housing Plan Update

Apex’s household population has been growing rapidly over the past decade and is on track to continue doing so. In terms of relative incomes, growth is expected at all levels with the largest absolute increase within the >140% AMI group.

Apex’s ongoing rapid growth translates to a projected need for over 13,000 units during the next decade. Even factoring potential annexation, there is a diminishing amount of land available for this growth, requiring more units on fewer acres moving forward to keep up.

From a fiscal point of view, building denser housing is a win-win-win for homeowners, developers, and the municipal budget.

• Especially given the high cost of land in Apex, smaller lots accommodating somewhat smaller homes drives down the per home sale price for homeowners.
• Denser housing translates to higher profits for developers, implying they would be willing to shift to denser housing types if allowed and encouraged by town government and residents.
• More homes per acre translates to higher assessed value per acre, increasing tax revenue.

Based on conversations with local homebuilders, the lot width is the key driver of housing density.

Households at the younger and older ends of the age spectrum tend to converge in terms of the types of housing they prefer. Less likely to have children, these households are more likely to choose smaller units, including apartments, condos, and attached single family (i.e. townhomes and duplexes).

These age groups combine to comprise nearly 75% of the net-new household growth expected over the next decade. However, most of Apex’s housing stock is geared more toward middle-aged and family-oriented households more interested in larger, detached single family houses. While this traditional housing type will always be an important part of the mix, more smaller options are needed to improve the balance between current supply and anticipated demand trends.

This chart compares the median listing price in Apex with the home value attainable to a household earning the median household income. A wider gap means higher barrier to entry for first-time homebuyers and increased risk that an existing resident might be priced out of the community if they choose or need to move to a different house.

Affordability is based on the county’s estimated median income. Actual affordability levels for specific properties vary based on variation in the above variables as well as possible additional costs for some units such as condominium fees.

Across all income levels, there are households having trouble affording their current housing costs. This challenge is particularly pronounced among lower-income households, most of whom are spending more than they can comfortably afford to live in Apex.

Households are cost burdened when paying more than 30% of their income on housing costs. They are considered severely cost burdened when these costs exceed 50% of their income. For renters, this includes lease rent and utilities. For homeowners, this includes mortgage costs, property taxes, insurance, utilities, and any condo fees.

As housing costs rise, the middle-income workforce finds it harder to afford to live in the community where they work. Displacement of essential workers like teachers, firefighters, police, nurses and other essential workers can impact the local economy by making it harder to fill these critical positions.

Residents with higher paying jobs in the knowledge sector can afford Apex housing costs, out-competing those in the essential workforce for homeownership and rental units within the community.

Rates of first-time homelessness have returned to pre-Covid levels. This is likely driven in part by the sunsetting of temporary pandemic-related funding and support programs. However, the high cost and constrained supply of housing also contributes to this challenge.

Interviews with continuum of care (CoC) service providers operating in Apex and broader Wake County indicate homelessness is becoming a more acute challenge both for the resident population and the organizations that manage these services. For example, as market rents increase, CoC providers are increasingly looking outside the county for landlords willing to accept placement vouchers and for units priced low enough to meet voucher cost criteria. These providers report that most - if not all - households that become homeless in Apex will likely be placed in supportive housing outside the community. In other words, once an Apex resident becomes homeless, it is likely they will be displaced from the community, potentially permanently.

Conversations with local residents and stakeholders uncover a “tale of two Apexes,” one reflected in the people and cultures who have been here for generations and another reflected in the people who have arrived in the past few decades. While these groups each contribute value and to the community, there are signs the “old” Apex is at risk of being displaced by the “new.”

This map highlights the neighborhoods at greatest risk of displacement, not just in terms of the people who live there but the parts of Apex’s cultural heritage that they represent. Darker areas illustrate the following (relative to the town as a whole):

• Lower property values
• Higher concentration of Black residents
• People who have lived in their current unit longer

Drawn from interviews with a broad range of local and regional stakeholders as well as analysis of current programs and policies, this section compiles the primary barriers to building and accessing housing - especially affordable housing - in Apex.

Barriers to affordable housing are organized into the five categories at right.

By implementing these policies and programs, the Town can increase the supply of affordable housing and help more residents access attainable housing options.

The list of strategies combines initiatives that have been established since the 2021 Affordable Housing Plan with new ideas developed through this Housing Plan Update process.