Affordable Housing Gap Continues to Widen

Parker-Associates-Newsletter-Blog-September-2018-Affordable-Housing-Alliance

HUD’s Numbers Up Dramatically

Parker-Associates-Newsletter-Blog-September-2018-Affordable-Housing-Construction

Parker-Associates-Newsletter-Blog-September-2018-Affordable-Housing-Construction

Conducted every two years, The U.S. Department of Housing and Urban Development’s Office of Policy Development and Research (PD&R) reports on the severity of worst case needs for affordable rental housing.  Worst case needs are defined as renters with very low incomes— no more than 50 percent of the Area Median Income (AMI)—who do not receive government housing assistance and who pay more than one-half of their income for rent, live in severely inadequate conditions, or both.

Their findings are staggering.  The number of worst case needs has increased by 40.6 percent since 2007, when the recession began, and by 65.6 percent since 2001.  Additionally, 33 percent of very low income (VLI) renter households; 8.2 percent of low income (LI) renter households, and 2.4 percent of middle income (MI) renter households are severely cost-burdened, referring to those households that spend more than 50 percent of their income on housing costs.

Parker-Associates-Newsletter-Blog-September-2018-Affordable-Housing-Gap-Widens

Parker-Associates-Newsletter-Blog-September-2018-Affordable-Housing-Gap-Widens

Overall, the unmet need for decent, safe, and affordable rental housing continues to outpace the ability of federal, state, and local governments to supply housing assistance and facilitate affordable housing production.  In short, the gap is widening at an accelerated pace; leaving society’s most at-risk (the elderly, single parents and persons with disabilities) to face hard decisions regarding their day-to-day survival.

While the data suggest that the nation’s ongoing economic recovery is continuing to have some beneficial effects on the incomes of very low-income renters, growing competition for a limited supply of affordable units, a rising population of renter households and a declining population of homeowners, a widening rental assistance gap, and rising rents continue to drive severe housing problems among this vulnerable population.

Parker-Associates-Newsletter-Blog-September-2018-affordable-housing-really

Parker-Associates-Newsletter-Blog-September-2018-affordable-housing-really

Contributing most to the increase in worst case needs was a notable shift from homeownership to renting, which surpassed even the marked tenure shift trends observed during the recessionary period.  This trend is likely to continue as home prices continue to climb (reportedly up more than 6.3 percent in just the past year).

Parker Associates works extensively on understanding your market, your consumer, and your goals. We don’t take guesses, we take the time and commit the resources to researching the market and the consumer to make sure we get it right.  We are YOUR advocate by being the CONSUMER’S advocate.

Spend time looking at what you are trying to acquire, develop, or sell to learn how you can improve the success of what you are offering. Parker Associates helps understand the consumer by answering WHO will buy, WHAT they will buy, and HOW they will buy it.  When the research is completed and the analysis is done, having the answers to these questions will reveal what will provide the best success for your project.  Keep asking WHO, WHAT, and HOW and keep developing to fit the need.

The Parker Associates process starts with a confidential review and consultation to learn more about our processes. Then Contact Us to put Parker Associates to work for you.

Don Waltz is a principal of Parker Associates of Jacksonville, Florida, marketing consultants to the real estate industry; Research Specialist, MIRM and a Sales & Marketing professional with Parker Associates based in Jacksonville, FL. He can be reached at 904-307-1314 or via email don@parkerassociates.com.

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