The affordable housing crisis doesn’t seem to be getting better. At the moment, there is a perfect storm driving housing prices and rents up. The storm includes low supply, increased demand, poor wage growth and a lack of proper financing tools, all of which are helping to drive rents up.
“We’ve been seeing a huge influx of local and state resources for affordable housing in California, bringing a much larger pipeline of transactions,” Cecile Chalifour, west division manager for Community Development Banking at Chase, tells GlobeSt.com. “However, we’re facing an ongoing and perfect storm: low production of affordable housing over the last 10 years with low supply, increased demand leading to higher rent expectations from landlords and investors, and a growing disconnect between rent increases and income growth. As a result, the affordable housing crisis is growing. Although we have more resources today, high development costs for land and construction are making it harder to build financially viable affordable housing projects.”
Want to continue reading?
Become a Free ALM Digital Reader.
ONCE YOU ARE AN ALM DIGITAL MEMBER, YOU’LL RECEIVE:
Unlimited access to GlobeSt and other free ALM publications
Access to 15 years of GlobeSt archives
Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
3 free articles* across the ALM subscription network every 30 days
Exclusive discounts on ALM events and publications
*May exclude premium content
Already have an account? Sign In Now
Kelsi Maree Borland
Kelsi Maree Borland
Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.
Dig Deeper
Los Angeles
National
Multifamily
Capital Markets
Northeast
Southeast
West
Trending Stories
CA Ventures Rolls Out $12B Student Housing, Residential Investment Plan
The Biggest Trends in Master Plan Communities
3 Reasons to Consider Container-Based Con
Leave a comment
