Supply and Demand
I was struck while reading this new post from the Urban Land Institute, by the stark statistics being presented on the lack of progress being made in regards to affordable housing and starter homes across the country. It’s easy to think about how this is just an issue for areas like DC, New York City or San Francisco, but the lack of available housing is becoming an issue almost everywhere. While the economy has been improving steadily since the recession, the real estate market has not responded with the same rate of growth.
The online real estate service Trulia recently reported that the number of starter and trade-up homes available in the 100 largest U.S. metropolitan areas has plunged by more than 40 percent since 2012.
–Stockton Williams, “Understanding Scope of the Housing Shortage in the U.S”, Urban Land.
As Williams mentions in his post, one of the more frustrating statistics is that one million new apartment units are expected to become available nationally over the next three years, but most are targeting the high-end luxury market because as a previous update noted, there is lower return on developing affordable units compared to higher-end ones. While much of the price pressure can be attributed to strong market demand, local regulations are also a contributing factor.
There isn’t an easy solution, but here at GSH, we believe that if we can engage all the different stakeholders in the community we can have a long-term impact on this need.