The strong demand for units is coupled with an affordability crisis.
According to the State of the Nation’s Housing 2017, only 31% of renters
are able to afford the $1,550 median asking rent for a new apartment in
By comparison, in 1990 41% of renters could afford the $1,064 real
median asking rent for new units. Supply of low-cost units has also
A Hudson Institute analysis found that 60% of low-cost units in 1985
were lost by 2013. As a result of the supply and demand imbalance, the
affordable housing industry is expected to remain strong.
According to the Joint Center for Housing Studies of Harvard University,
the long-term outlook for rental housing demand is positive as
increasing numbers of millennials form new households and older
households switch from owning to renting.
A 2016 National Low Income Housing Coalition study found that for every
100 extremely low-income renters, only 35 rental units were affordable
and available which is a nationwide shortfall of more than 7.2 million
Conditions for very-low income renter households improved slightly with 56 affordable and available rentals per 100 households.
Additionally, there is tremendous demand for affordable housing among
the nation’s 15.5 million very low and extremely low-income households.
Conditions in the affordable market will continue to remain strong with
strong demand and diminishing supply.
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