MARKETWhy Affordable Housing?
The Rising Tide of RentersAffordable Housing Supply Gap
The rising tide of renters is creating a widening gap between the supply of affordable housing units and the demand for affordable housing units according to the Joint Center for Housing Studies of Harvard University’s report “State of Nations Housing 2012”. As the number of renters climb, vacancy rates are dropping to record lows, which make rental income increasingly more stable. We believe that a strategy focused on providing affordable housing to this growing sector of the rental market will be a sound business model for years to come and will not be subject to the volatile swings of the high-end real estate market.
AFFORDABLE HOUSING NEED
The need for affordable housing is as strong now as ever. More than half of all Americans make less than $27,000 (Reuters) and baby boomers reached retirement age beginning in 2011 (US Census Bureau), many with inadequate retirement reserves.
The need for affordable housing is as strong now as ever.
INCREASING DEMAND
In fact, in its comprehensive study of the affordable housing market, “Out of Reach 2012,” the National Low Income Housing Coalition reported that from 2005 to 2010, the number of renter households rose by nearly four million, as more and more households were priced out of the homeownership market. That number is expected to increase by an additional 470,000 annually over the next decade.