And another article about why housing prices are so high and why that unicorn developer simply does not exist, highlights:
“Only one in four households that is income-eligible for federal housing assistance receives any. The annual cost to taxpayers of the federal income tax deductions for home mortgage interest and property taxes, which mainly benefit relatively affluent households, is double what the government spends on all lower-income housing programs combined.”
While there’s been an 18 percent increase in the number of low-income households from 2007 to 2013, funding for the largest HUD program remains below 2008 levels.
This confluence of factors, especially rising demand and ever rising rent, would seem to be a perfect storm for more construction. But according to Williams, we’re also seeing roadblocks hindering much-needed affordable housing construction.
“From suburban to urban builders, it’s become increasingly costly to build any new residential units,” says Williams. “Declining subsidies, land and labor costs, everything has come together. All the overarching factors are making this far from a fully functioning market.”
“What I’m hearing from everybody else in the affordable housing community, from across the country, is that it’s just getting harder,” she says. “Money is getting more scarce, disparities are getting worse, and the cuts are making everyone crazy. People who have been in this business don’t know where we’re going. Even though we’re building a handful more buildings each year, we’re losing so many off the backend, the net add is sometimes negligible.”
Also relevant to this discussion is this timely tweet by Kim-Mai Cutler:
As long as our citywide and regional response to concerns about families being priced out is shruggy emoji dude up there then we’ll continue losing friends and neighbors who don’t have the security of a decades old purchased house or massive salaries that can compete when a commodity is scarce.
Essentially it costs more to build and there’s less building going on, but the idea is that we’ll totally get some developer in the face of rising costs to only build affordable housing units. Yeah, that’s totally going to happen.