Affordable housing references a spectrum of different housing types, from a subsidized social housing for those with special needs, to transitional housing and homeless shelters. There are strategies you can follow to achieve affordable housing:
Maintain older housing stock:
*An inexpensive method of gaining affordable housing. This is commonly used in situations where there is an abundant supply of deteriorating stock.
Housing Mandates:
*It's possible to create affordable housing without assistance from the government. But it should only be applied where housing demand is very strong.
Government-sponsored housing:
*This tends to be expensive, but it is meant to serve special needs. Unfortunately, government housing can't meet the demand for low priced housing.
Unjustified Restrictions:
*Unjustified Restrictions typically decreases the costs of housing production. Which gives markets the chance to respond to demands.
Affordability:
*Affordability should take total housing costs into account. Including maintenance, taxes, transportation costs and utilities. Consider both long-run and short-run impacts.
Strategies are useful, but it is important to consider the facts, too:
Housing shortage provides opportunities:
*A rarity in today's economy could be mid-priced single-family homes of which only a handful can afford. Although margins are good for those projects, developing more affordable housing would be helpful to the community.
Are fears of recession misplaced?:
*The U.S economy will inevitably need a correction. However, experts have stated that the future will be smooth as opposed to another recession.
Gen Z:
*Gen Z, the generation born starting from 1995 to 2009, has a potential for improving the post-college housing market, similarly to millennials.
2018 Markets to watch:
*Here are a few examples:
-Seattle
Overall rank: 1
Investment rank: 2
Development rank: 1
-Los Angeles
Overall rank: 7
Investment rank: 8
Development rank: 8
-Charlotte
Overall rank: 12
Investment rank: 12
Development rank: 16
-Portland
Overall rank: 13
Investment rank: 7
Development rank: 20
Urban Fringe Development:
*While this can provide cheap housing, it tends to have high future transportation costs and high infrastructure. Urban Fringe development is only affordable in a location with ideal transportation options.
In conclusion, take your time when it comes to finding affordable housing. There are many advantages and disadvantages you need to keep in mind. Taking the time to consider all factors of purchasing a home tends to set a wiser decision.
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