Yardi Matrix analyzes affordable housing challenges

A recent Yardi Matrix webinar addressed challenges facing U.S. affordable housing development and outlined policy changes that could help resolve the problem.

Affordable housing properties

Yardi Matrix leaders recently offered insight into the U.S. affordable housing market. It currently faces hurdles in developing new stock even as supply perpetually trails demand.

Jeff Adler, vice president of Yardi Matrix, and Paul Fiorilla, director of research, noted in a recent webinar that the decades-long persistent housing shortage is largely driven by zoning restrictions, permitting delays and other bureaucratic obstacles. Rising operational and insurance expenses, which require raising additional capital, pose additional challenges to creating affordable housing.

“We’re not building single family or multifamily units at the rate that’s necessary to resolve this housing shortage,” Adler noted.

He added, “It looks like after a current supply wave peaks this year and next year will be followed by a decline in 2027, so we’ll still have a housing shortage.” To solve the affordability problem, he said, “You’ve really got to build. The best path forward is encouraging supply that brings costs down naturally.” This needs to be done without suppressing market forces. We also need to address zoning, capital, insurance costs and other issues that hinder development.

A policy framework that expedites the decision process while reducing complexity, costs and frictions would “make creating affordable housing a lot easier and faster, with the goal of making things better for Americans.”

See the webinar recording for more insight into the factors affecting U.S. affordable housing.

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AUTHOR

Joel Nelson, senior marketing writer, joined Yardi in 2007. His byline has appeared in New York Real Estate Journal, Canadian Property Management and Los Angeles Lawyer, among others. He has won multiple awards from major professional organizations including the International Association of Business Communicators and Public Communicators of Los Angeles. Joel earned a bachelor’s degree from Pomona College.

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