Affordable Housing Sector ThrivingAugust 26, 2016
| IREM Staff
The affordable housing sector is stable, and in some respects thriving. The need for affordable housing has never been greater.
The Joint Center for Housing Studies of Harvard University reported that in 2014 over 11 million households paid more than half their incomes for housing – a record high. Over 21 million households pay more than 30 percent of their income on housing. There is a critical shortage of affordable housing across the nation.
Some of the issues impacting affordable housing include:
- Modest income growth – continuing rent increases coupled with limited income growth has increased the need for affordable housing.
- Growth in conventional apartment construction – as fundamentals remain strong in the apartment sector, developers are ramping up construction of conventional properties at the expense of affordable apartment construction.
- Political uncertainty – the outcome of the presidential year elections could have a major impact on future government funding and tax provisions related to federally assisted housing.
The performance of federally assisted housing communities varies significantly by geographic location, federal subsidy type and building type. Because of these differences, IREM’s Income/Expense Analysis®: Federally Assisted Apartments is a critical tool for analyzing an individual property performance.
The following charts highlight some of the national trends for federally assisted housing. All properties are Garden Style Section 8 Elderly-Handicapped or Section 8 Family.
TheIREM 2016 Income/Expense Analysis Reports are available in softcover book, interactive PDF/Excel, Online Labs and Metro Reports.