Builders Patch | HousingCount: Tennessee affordable housing data and latest news

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Tennessee

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Overview Counties Housing news

Summary

Tennessee state is facing challenges to housing affordability. For every 100 low-income renter households, there are 77 units available that are affordable to them. The median household income in the state is $37,929 whereas the median rent in the state $751. Currently, the state is short over 51,588 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.

33.1%

share of renter households

40.3%

share of low-income households

42.8%

share of rent-burdened households

Renter population data

Renters vs homeowners

Share of income spent on rent

Households

% share

Renter households

881,517

33.1%

Homeowner households

1,783,274

66.9%

Total households

2,664,791

100.0%

Low-income renter households

Renter households by income group

Households

% share

Extremely low-income

≤30% AMI

123,305

14.0%

Very low-income

31-50% AMI

100,430

11.4%

Low-income

51-80% AMI

131,910

15.0%

All low-income households

<80% AMI

355,645

40.3%

Rent-burdened households

Share of income spent on rent

Households

% share

Moderately rent-burdened

197,443

22.4%

30.0–34.9%

72,936

8.3%

35.0–39.9%

54,012

6.1%

40.0-49.9%

70,495

8.0%

Severely rent-burdened

179,801

20.4%

≥50.0%

179,801

20.4%

All rent-burdened households

377,244

42.8%

Affordable housing shortage

Rent vs median household income

Median household income

Amount ($)

in 2010

25,401

in 2021

37,929

Increase (2010–2021)

49.3%

Median rent

Median rent

Amount ($)

in 2010

527

in 2021

751

Increase (2010–2021)

42.5%

Affordable housing stock

Supply, demand & shortage

Units

Supply (current stock)

172,147

Demand (total units needed)

223,735

Shortage

51,588

51,588

total shortage

76.9%

supply/demand ratio

Availability of affordable rental units per 100 household

85  209  109  51  050100150200Moderate, middle &upper-income(>80% AMI)Low-income(51-80% AMI)Very low-income(31-50% AMI)Extremely low-income(≤30% AMI)

plotly-logomark

Finance institutions

Tennessee Housing Development Agency

Tennessee Housing Development Agency

502 Deaderick Street, T

LIST OF loan programs

Low-Income Housing Tax Credit Program

Tax Exempt Multi-Family Bond Authority Program

QAP document (Qualified Allocation Plan)

QAP

Tennessee

The QAP is a document that states, and a few local agencies, must develop in order to distribute federal Low Income Housing Tax Credits (LIHTCs), which can be awarded only to a building that fits the QAP’s priorities and criteria. Each QAP must spell out a housing finance agency’s (HFA’s) priorities and specify the criteria it will use to select projects competing for tax credits. The priorities must be appropriate to local conditions.

Download document

Housing news

September 19, 2024

|

Fast Company

How Fed Rate Cuts Impact the Housing Market

The Federal Reserve’s recent rate cuts will influence the housing market, but the effects won't be immediate. Although lower rates make borrowing more affordable, the ongoing housing shortage and existing conditions in the market remain tough obstacles.

Key Takeaways:

While the Fed’s actions are a positive step toward stabilizing the housing market, broader structural challenges—particularly the lack of new housing supply—will continue to affect the market​

Full article

June 26, 2024

|

New York Post

Housing market won’t come ‘unstuck’ until 2026, economists predict — here’s why

Bank of America economists predict the US housing market won't recover until at least 2026, with home affordability improving only with a recession. They attribute the prolonged downturn to a surge in demand during the pandemic, followed by high inflation and mortgage rates. Home prices are expected to rise by 4.5% in 2024 and 5% in 2025, then stabilize in 2026. The "lock-in effect" of current homeowners unwilling to sell due to high mortgage rates will persist. However, improving credit conditions and less restrictive monetary policies may attract some buyers back to the market.

Full article

May 15, 2024

|

US News

States With the Largest Homeless Populations

In 2023, the number of homeless individuals in the U.S. reached approximately 653,000, the highest since such records began in 2007. This figure represents a significant 12% increase compared to 2020, as reported by the U.S. Department of Housing and Urban Development in their Annual Homelessness Assessment Report to Congress. Data for this report is gathered from point-in-time counts conducted every January by volunteers, local outreach teams, shelters, and service providers. Here are the top 10 states with the largest homesless population:

  1. California (181,399)
  2. New York (103,200)
  3. Florida (30,756)
  4. Washington (28,036)
  5. Texas (27,377)
  6. Oregon (20,142)
  7. Massachusetts (19,141)
  8. Colorado (14,439)
  9. Arizona (14,237)
  10. Pennsylvania (12,556)

Full article

June 11, 2024

|

NBC News

The homebuying affordability gap is widening across the country, creating 'an impossible market'

The worsening housing affordability crisis in the U.S. has broken several records, the recent being the national affordability gap nearing a 10-year high. Only 63% of counties are now affordable for median-income households, compared to 94% in 2019. The median home price exceeds what the average household can afford by nearly $70,000. The West, especially the San Francisco Bay Area, is facing significant gaps due to supply shortages and continues to top the list of one of the most unaffordable housing markets in the country. Even traditionally affordable areas like Henry County, Indiana, are seeing dramatic price increases, making homeownership increasingly unattainable for many. High interest rates, low construction, and rising prices are key factors.

You can see a full breakdown of affordable housing shortage by county on our Housing Count page

Full article

July 15, 2024

|

The Washington Post

Homelessness, already at a record high last year, appears to be worsening among workers

Homelessness is rising in the US, with a growing number of employed people now unable to afford housing due to high rents. Plumbers, delivery workers, pizzeria employees, casino supervisors and other working class Americans are becoming the new face of homelessness.

Rising costs and a lack of affordable housing options are forcing people to sleep in cars, motels or even public spaces. The situation is particularly difficult for those who don't qualify for government assistance due to their income but cannot afford rent on their own. Experts say increasing rental assistance and building more affordable housing are some ways to address this issue.

Full article

Shortage statistics for ELI & VLI renters

plotly-logomark

S&D ratio = Supply & Demand Ratio

List of counties

Rental population

ELI & VLI (<50% AMI)

Rent-burdened

Affordable housing

Name

Households

% share

Households

% share

Households

% share

Shortage of units

S&D ratio

Anderson County

9,683

31.3%

2,837

29.3%

3,644

37.6%

2,680

2.2%

Bedford County

5,279

29.5%

1,386

26.3%

2,143

40.6%

1,288

2.6%

Benton County

1,715

26.3%

412

24.0%

543

31.7%

-616

276.8%

Bledsoe County

944

19.3%

329

34.9%

198

21.0%

133

87.2%

Blount County

12,425

23.7%

3,349

27.0%

4,930

39.7%

2,277

17.7%

Bradley County

13,508

33.0%

3,455

25.6%

5,409

40.0%

2,765

15.5%

Campbell County

5,287

33.6%

1,790

33.9%

1,524

28.8%

1,468

14.8%

Cannon County

1,269

22.4%

404

31.8%

325

25.6%

-61

167.3%

Carroll County

2,659

24.2%

651

24.5%

898

33.8%

422

37.9%

Carter County

6,579

27.9%

2,226

33.8%

2,219

33.7%

690

108.3%

Cheatham County

3,217

20.9%

1,060

32.9%

850

26.4%

-1,784

473.3%

Chester County

1,475

24.1%

503

34.1%

423

28.7%

-111

215.3%

Claiborne County

3,807

28.4%

931

24.5%

1,269

33.3%

698

26.3%

Clay County

706

23.7%

253

35.8%

133

18.8%

-519

478.2%

Cocke County

4,237

29.5%

1,342

31.7%

1,498

35.4%

-585

253.7%

Coffee County

7,323

32.7%

1,949

26.6%

2,678

36.6%

-654

204.1%

Crockett County

1,630

30.3%

285

17.5%

670

41.1%

-37

174.6%

Cumberland County

5,676

21.4%

1,860

32.8%

1,924

33.9%

622

92.3%

Davidson County

133,417

45.4%

33,017

24.7%

63,704

47.7%

27,579

15.6%

Decatur County

828

18.9%

257

31.0%

267

32.2%

-40

125.5%

DeKalb County

2,469

30.8%

734

29.7%

903

36.6%

186

98.2%

Dickson County

4,197

21.3%

1,030

24.5%

1,419

33.8%

-592

229.2%

Dyer County

5,399

36.8%

1,706

31.6%

2,181

40.4%

1,127

31.0%

Fayette County

3,143

19.7%

940

29.9%

1,260

40.1%

-877

281.0%

Fentress County

1,834

24.6%

572

31.2%

636

34.7%

-298

213.4%

Franklin County

4,227

25.7%

1,227

29.0%

1,494

35.3%

749

51.7%

Gibson County

6,396

32.9%

1,768

27.6%

2,519

39.4%

761

79.9%

Giles County

3,274

28.7%

1,080

33.0%

1,004

30.7%

-9,098

1371.2%

Grainger County

2,169

23.2%

575

26.5%

811

37.4%

351

47.3%

Greene County

6,584

24.0%

1,607

24.4%

1,915

29.1%

965

56.5%

Grundy County

915

18.9%

301

32.9%

247

27.0%

-344

448.6%

Hamblen County

8,052

32.9%

1,988

24.7%

3,450

42.8%

932

88.6%

Hamilton County

54,005

36.6%

13,968

25.9%

23,698

43.9%

12,510

9.0%

Hancock County

602

21.1%

229

38.0%

261

43.4%

-267

262.7%

Hardeman County

2,752

30.4%

912

33.1%

1,085

39.4%

-49

186.3%

Hardin County

2,672

24.8%

655

24.5%

929

34.8%

-775

403.9%

Hawkins County

5,247

23.0%

1,344

25.6%

1,892

36.1%

736

62.5%

Haywood County

2,926

41.1%

822

28.1%

1,257

43.0%

356

85.4%

Henderson County

2,830

26.1%

745

26.3%

1,135

40.1%

-822

316.7%

Henry County

3,093

23.9%

862

27.9%

1,152

37.2%

609

30.5%

Hickman County

1,852

21.2%

330

17.8%

691

37.3%

-1,271

706.4%

Houston County

565

19.8%

172

30.4%

162

28.7%

-3,774

3275.0%

Humphreys County

1,364

20.4%

281

20.6%

456

33.4%

-105

168.3%

Jackson County

812

18.0%

178

21.9%

275

33.9%

-169

248.6%

Jefferson County

5,100

25.0%

1,295

25.4%

1,988

39.0%

20

137.4%

Johnson County

1,462

21.3%

467

31.9%

536

36.7%

-392

286.5%

Knox County

67,277

35.0%

17,773

26.4%

29,115

43.3%

15,577

12.5%

Lake County

968

46.7%

330

34.1%

296

30.6%

201

59.0%

Lauderdale County

3,736

40.9%

1,212

32.4%

1,409

37.7%

74

141.9%

Lawrence County

4,239

25.7%

1,005

23.7%

1,463

34.5%

642

28.6%

Lewis County

898

18.5%

264

29.4%

369

41.1%

120

91.4%

Lincoln County

3,177

22.6%

884

27.8%

1,366

43.0%

460

101.8%

Loudon County

4,134

19.0%

1,085

26.2%

1,250

30.2%

687

50.6%

Macon County

2,561

27.6%

754

29.4%

978

38.2%

-7,901

1772.3%

Madison County

14,478

37.4%

5,022

34.7%

7,089

49.0%

3,514

17.0%

Marion County

2,722

23.2%

884

32.5%

942

34.6%

-527

240.9%

Marshall County

3,365

26.5%

810

24.1%

1,199

35.6%

-693

288.0%

Maury County

11,165

29.0%

2,755

24.7%

4,837

43.3%

1,841

25.6%

McMinn County

5,477

25.9%

1,816

33.2%

2,029

37.0%

490

115.3%

McNairy County

2,267

23.1%

482

21.3%

680

30.0%

104

111.0%

Meigs County

1,106

21.6%

334

30.2%

427

38.6%

-302

318.5%

Monroe County

5,201

28.0%

1,334

25.6%

1,772

34.1%

783

56.6%

Montgomery County

29,596

38.2%

6,993

23.6%

12,290

41.5%

3,529

61.5%

Moore County

329

13.3%

93

28.3%

114

34.7%

-779

1560.8%

Morgan County

1,315

18.5%

429

32.6%

470

35.7%

-430

325.8%

Obion County

4,391

35.1%

1,051

23.9%

1,531

34.9%

-1,254

318.2%

Overton County

1,806

20.7%

529

29.3%

558

30.9%

63

133.1%

Perry County

712

23.3%

325

45.6%

183

25.7%

-81

248.1%

Pickett County

440

20.4%

163

37.0%

131

29.8%

-367

555.9%

Polk County

1,619

23.1%

384

23.7%

491

30.3%

239

46.6%

Putnam County

12,193

38.2%

3,879

31.8%

5,249

43.0%

1,418

80.4%

Rhea County

3,405

26.7%

934

27.4%

1,004

29.5%

-390

230.1%

Roane County

5,363

24.6%

1,750

32.6%

1,870

34.9%

1,436

7.0%

Robertson County

6,391

24.1%

1,903

29.8%

2,433

38.1%

1,081

50.3%

Rutherford County

41,476

34.9%

8,337

20.1%

18,190

43.9%

4,947

44.9%

Scott County

2,316

27.1%

619

26.7%

723

31.2%

183

109.6%

Sequatchie County

1,326

22.6%

149

11.2%

482

36.3%

-40

202.2%

Sevier County

10,316

28.0%

2,252

21.8%

3,997

38.7%

1,849

20.0%

Shelby County

157,620

44.4%

43,737

27.7%

78,050

49.5%

40,122

2.1%

Smith County

1,748

23.4%

540

30.9%

419

24.0%

-1,573

786.2%

Stewart County

1,033

20.3%

234

22.7%

302

29.2%

-882

852.5%

Sullivan County

18,879

28.2%

4,335

23.0%

7,414

39.3%

3,193

35.8%

Sumner County

19,358

26.6%

5,023

25.9%

8,338

43.1%

2,661

60.3%

Tipton County

5,562

25.4%

1,454

26.1%

2,326

41.8%

-402

246.9%

Trousdale County

686

20.5%

201

29.3%

220

32.1%

-1,504

1136.6%

Unicoi County

1,962

25.9%

610

31.1%

838

42.7%

470

27.4%

Union County

1,647

22.2%

545

33.1%

459

27.9%

-583

453.8%

Van Buren County

548

22.7%

131

23.9%

108

19.7%

-6,166

6093.1%

Warren County

4,690

29.7%

1,220

26.0%

1,742

37.1%

843

42.7%

Washington County

19,342

35.2%

4,829

25.0%

8,191

42.3%

4,410

6.5%

Wayne County

1,181

20.8%

429

36.3%

401

34.0%

-1,341

852.3%

Weakley County

4,400

33.3%

1,075

24.4%

1,656

37.6%

-128

156.6%

White County

2,360

22.9%

633

26.8%

1,028

43.6%

19

132.1%

Williamson County

16,793

19.7%

5,234

31.2%

6,893

41.0%

3,042

15.4%

Wilson County

12,338

23.3%

2,983

24.2%

5,317

43.1%

1,577

52.7%

Housing news

September 19, 2024

|

Fast Company

How Fed Rate Cuts Impact the Housing Market

Key Takeaways:

Full article

June 26, 2024

|

New York Post

Housing market won’t come ‘unstuck’ until 2026, economists predict — here’s why

Full article

May 15, 2024

|

US News

States With the Largest Homeless Populations

Full article

June 11, 2024

|

NBC News

The homebuying affordability gap is widening across the country, creating 'an impossible market'

Full article

July 15, 2024

|

The Washington Post

Homelessness, already at a record high last year, appears to be worsening among workers

Full article

May 8, 2024

|

Housing Wire

Home prices grew in 93% of markets in Q1 2024: NAR

In the first quarter of 2024, home prices increased in 93% of U.S. metro areas, with significant growth observed in 30% of these markets. The national median price for single-family homes rose to $389,400, marking a 5% year-over-year increase. The South led in sales volume, while the Northeast saw the highest price appreciation. Despite high mortgage rates, market conditions improved slightly for buyers due to a marginal decline in required mortgage payments compared to the previous quarter.

Full article

July 31, 2024

|

NPR

Do you rent? You may be more vulnerable to climate-driven disasters

Climate disasters are wreaking havoc across the United States and are disproportionately impacting renters, who often lack the financial resources and insurance protection of homeowners.

Hurricane Ian survivors are facing a financial crisis long after the storm has passed. The once-affordable paradise of Matlacha, Florida, was shattered by the Category 5 hurricane, leaving residents grappling with staggering financial losses. As a renter, Venus James found herself particularly vulnerable, with no insurance coverage and soaring costs for everything from housing to basic necessities.

Rising rents, job losses, and the depletion of savings have pushed many survivors into a cycle of financial hardship. Experts call for increased government support, including eviction moratoriums and direct financial assistance, to help renters recover from disasters and prevent further economic devastation.

Full article

July 25, 2024

|

Affordable Housing Finance

Greystone expands affordable housing initiatives with initial LIHTC fund

Greystone, a prominent commercial real estate finance firm, is expanding its affordable housing portfolio with the launch of its first national multi-investor Low-Income Housing Tax Credit (LIHTC) fund. Led by industry veterans Greg Voyentzie, Sarah Laubinger, and Todd Jones, the fund aims to raise $100 million and is expected to close by early next year.

The new venture leverages Greystone's existing strength in affordable housing lending to offer a comprehensive suite of financing solutions for developers. The company plans to develop proprietary tools to streamline deal evaluation and management, enhancing investor returns and driving positive community impact.

(Image Source: AHF)

Full article

June 24, 2024

|

U.S. Department of Treasury - Press Release

Treasury Secretary Janet L. Yellen to Announce New Housing Efforts as Part of Biden Administration Push to Lower Housing Costs

The Treasury Department is allocating $100 million over three years to boost affordable housing development as part of the Biden administration's plan to combat rising living costs. Other efforts, announced this week by Treasury Secretary, Janet Yellen, include offering greater interest rate predictability to housing finance agencies, urging Federal Home Loan Banks to increase their housing program spending, and providing updated guidance for state and local governments on using recovery funds for housing. Yellen also called for expanding the Low-Income Housing Tax Credit and reducing legal barriers to housing development.

📢 Treasury Secretary, Janet Yellen - “ Eliminating needless legal barriers to housing development doesn’t just affect individuals and communities. Economists estimate that restrictive residential land use regulations."

Full article

April 14, 2024

|

The Daily Progress

Homebuyers’ quandary: to wait or not to wait for lower mortgage rates

Currently, the average rate for a 30-year mortgage stands at around 6.9%, a significant decrease from late October when it peaked at nearly 8%. Despite expectations of rates declining later in the year, some buyers are opting to act now due to fears of increased competition. The combination of high mortgage rates and soaring home prices has made affordability a major concern, with many households earning less than what's needed to afford a median-priced home. While economists anticipate mortgage rates easing, uncertainty remains.

Full article

March 28, 2024

|

Housing Wire

Bipartisan housing policy efforts are gaining traction, but challenges remain

There are ongoing bipartisan efforts at various levels of government to address housing supply and pricing challenges in the United States. The importance of local action in addressing these issues, particularly through measures such as accessory dwelling units (ADUs), changes in zoning rules, and reduction of lot sizes, is increasingly becoming evident. Despite political differences, lawmakers in some states are collaborating on bipartisan housing legislation. However, challenges such as NIMBYism hinder progress at the local level, prompting calls for state-level intervention to overcome resistance to housing reforms.

Full article

March 20, 2024

|

National Mortgage News

What makes mortgage professionals embrace, or balk at, AI use

According to a recent market study report by Arizent, where the company surveyed professionals across different financial segments such as banking, insurance, mortgage, technology etc, there is a range of different opinions about AI. Most respondents have concerns over job displacement and ethical considerations persist, especially regarding generative AI's accuracy and fairness. The general attitude among mortgage professionals is to be hyper cautious towards adopting generative AI, and they citied uncertainty and budget constraints as top considerations. Some of the main concerns of industry professionals regarding the adoption of AI includes loss of personalized customer interactions and job security. Despite apprehensions, there's acknowledgment of AI's potential to enhance efficiency and job performance, with expectations of AI handling a significant portion of tasks within the next five years. While efficiency gains are anticipated across various industries, banking professionals foresee AI primarily bolstering fraud protection.

Full article

March 12, 2024

|

The New York Times

In hospitals, affordable housing gets the long-term investor it needs

There has been an emergence in partnerships between healthcare systems and affordable housing developers, such as the H3C project in New Orleans, aiming to integrate stable housing with better health outcomes. Supported by investments from entities like Aetna and Kaiser Permanente, these initiatives reflect a growing recognition among health organizations of the benefits of addressing housing insecurity. While healthcare systems are not acting as banks, they are bridging gaps in funding for affordable housing, leveraging resources to meet community needs and their own nonprofit requirements. Such collaborations extend beyond traditional housing projects to include specialized care facilities and initiatives targeting populations with the greatest needs. Additionally, healthcare systems are exploring innovative approaches, including utilizing their land assets and collecting data to inform future partnerships and interventions aimed at addressing health and housing disparities.

Photo by Nice Trip on Unsplash

Full article

March 16, 2024

|

The Wall Street Journal

Why private developers are rejecting government money for affordable housing

In California, state and local governments have allocated substantial funds for affordable housing initiatives. Despite widespread acknowledgment of the need for affordable housing, publicly funded initiatives face challenges such as labor agreements and bureaucratic processes, which can inflate costs and slow down construction. Many private firms are moving away from a reliance on government funds, which according to them, drives up development cost owing to the red tape. Instead, these firms are exploring alternative financing models.

For example, SDS Capital Group is raising an impact fund from private investors, to build a 49-unit low-income housing project in South Los Angeles. While privately financed projects may still rely on government support for operation, recent regulatory changes have facilitated approvals and increased profitability for such developments. Concerns linger regarding the long-term maintenance and sustainability of privately funded housing projects, particularly regarding the welfare of residents and the availability of federal funding for rental assistance programs. Nevertheless, advocates see potential in private-equity models to drive down construction costs and inspire government reform in affordable housing initiatives.

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February 17, 2024

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NPR

The hottest trend in U.S. cities? Changing zoning rules to allow more housing

The United States is grappling with a housing crisis characterized by a shortage of millions of units and soaring housing costs for renters and buyers alike. To address this, cities are revising zoning rules to allow for more housing development, focusing on measures such as permitting multifamily homes in diverse neighborhoods and streamlining construction processes.

Minneapolis is leading the way with its progressive zoning reforms, adding 12% to its housing stock in just a five-year period. The city has taken measures such as ending single-family zoning and promoting midsize apartment buildings with 20 or more units. In Houston, minimum lot sizes were reduced from 5,000 square feet to 1,400, allowing for more units to be constructed. Milwaukee, New York City and Columbus, Ohio, are other examples of cities undertaking reform of their codes.

Photo by Nick Night on Unsplash

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February 27, 2024

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Housing Wire

HUD, VA announce $14.5M for veterans seeking permanent housing

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Veterans Affairs (VA) announced the allocation of over $14.5 million to public housing agencies (PHAs) nationwide to address veteran homelessness. An estimated distribution of more than 1,400 HUD-Veterans Affairs Supportive Housing (HUD-VASH) vouchers will be carried out nationwide. Some of the highest concentration of vouchers will go to Tucson, Arizona; Philadelphia; and Spokane, Washington. These vouchers combine rental assistance from HUD with support services, like case management and clinical services provided by VA. The vouchers have contributed to a 4% decrease in veteran homelessness since 2020 and has housed over 46,000 homeless veterans in 2023 alone.

Photo by Benjamin Faust on Unsplash

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February 21, 2024

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Newsweek

Black Homeownership is Set to Soar

Homeownership among Black Americans has consistently trailed behind all others in the country, including by 28% compared to white homeowners. However, according to a new report by the National Association of Realtors (NAR), Black homeownership is expected rise in the future.

How? As more Millennials and Gen Z enter into the home buying market, there will be a rise in minority owners. This is because on average, this demographic is more racially and ethnically diverse.

Future predictions - 1.5 million Black households will turn the median homebuying age over the next 5 years. Female and millennial buyers have been driving growth in Black homeownership and will continue to do so. Besides Black households, 775,000 Asian households and 2.2 million Hispanic households will also turn the median homebuying age in the next 5 years.

Challenges remain - Barriers such as rental affordability, student debt, and mortgage denial rates persist, hindering Black Americans' ability to purchase homes and achieve equitable homeownership rates. Addressing these challenges will be crucial to fostering greater inclusivity in the housing market.

Photo by Tierra Mallorca on Unsplash

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January 30, 2024

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Housing Wire

How AI and a changing rental market will shape property management in 2024

In 2024, the rental market is poised for transformation with two key factors: the growing impact of artificial intelligence (AI) tools and heightened competition among the multifamily rental market. A survey by AppFolio indicates that nearly half of property management professionals either use AI or plan to adopt it. Property managers face the challenge of maintaining high occupancy rates amidst a competitive market, with delinquencies identified as a top threat. To thrive in this changing landscape, property managers are leveraging AI to enhance operational efficiency, streamline tasks, and improve employee satisfaction, while also focusing on understanding resident expectations and offering digital services to attract and retain modern renters. A strategic technology approach is crucial for success in 2024 and beyond.

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January 29, 2024

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Multifamily Dive

Funding for proptech plummets 42%

In 2021 and 2022, the commercial real estate sector experienced a surge in proptech adoption, leading to increased investment. However, a recent report from the Center for Real Estate Technology and Innovation highlights a slowdown in momentum during 2023, attributed to factors such as inflation and geopolitical uncertainty. Venture capital investment in proptech witnessed a significant decline of 42% in 2023, amounting to $11.38 billion, compared to the previous year's total of $19.75 billion and the peak of $32 billion in 2021. Notably, the multifamily segment is being hailed as resilient, owing to continued robust activity in technologies targeting this space. What remains popular are technologies that help solve consumer problems, like reducing fraud.

(Photo by Luis Villasmil on Unsplash)

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January 25, 2024

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NPR

Housing is now unaffordable for a record half of all U.S. renters, study finds

Rising rents and reduced working hours during the COVID-19 pandemic have left many U.S. renters struggling to make ends meet, with a record 50% paying over 30% of their income on rent and utilities, per Harvard University's report. The unaffordability trend saw the most significant jump among households earning $30,000 to $74,999 annually, with a third of full-time renters still being heavily cost-burdened. Even lower-income renters, already facing severe challenges, experienced a further increase to 83% being cost-burdened. The report attributes the homelessness surge to a severe housing shortage and rising rent costs, exacerbated by a lack of affordable housing options. Despite a cooling housing market, the cost of construction has hit record highs leading to the construction of predominantly high-end apartments. This is further contributing to a growing affordability gap, with median rents outpacing income growth since 2001. The situation has increased demand for federal housing subsidies, which remain underfunded and insufficient.

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December 23, 2023

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S&P Global

Distress in CRE loans on nonowner-occupied properties rises at US banks

In recent quarters, US bank loans backed by owner-occupied commercial real estate have outperformed those backed by nonowner-occupied properties. This shift began in 2020 when work-from-home policies impacted nonowner-occupied commercial real estate loans. The delinquency ratio for nonowner-occupied properties surpassed that of owner-occupied ones in 2022 and continued to rise in 2023. The trend suggests that loans on owner-occupied properties carry less risk, reflecting property owners' likelihood to stay current on loans. However, the performance varies based on bank size, with larger banks experiencing worse delinquency ratios for nonowner-occupied loans. Notably, some major lenders like Morgan Stanley and Citigroup focus heavily on nonowner-occupied properties.

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