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)
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.
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:
- Lower Mortgage Rates: Fed rate cuts have already reduced the average 30-year mortgage rate, which dropped from a peak of 7.79% in late 2023 to around 6.2%. This could ease the burden for homebuyers and those refinancing.
- Home Sales: As rates decline, more homeowners might be encouraged to sell, which could help alleviate some of the housing market’s stagnation. However, a full recovery of the resale market is expected to be gradual.
- Ongoing Supply Issues: Despite lower rates, housing supply shortages will persist, especially in high-demand areas. Supply constraints, driven by zoning restrictions and labor/material shortages, remain a barrier to affordability.
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
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.
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:
- California (181,399)
- New York (103,200)
- Florida (30,756)
- Washington (28,036)
- Texas (27,377)
- Oregon (20,142)
- Massachusetts (19,141)
- Colorado (14,439)
- Arizona (14,237)
- Pennsylvania (12,556)
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
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.
Shortage statistics for ELI & VLI renters
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:
June 26, 2024
|
New York Post
Housing market won’t come ‘unstuck’ until 2026, economists predict — here’s why
May 15, 2024
|
US News
States With the Largest Homeless Populations
June 11, 2024
|
NBC News
The homebuying affordability gap is widening across the country, creating 'an impossible market'
July 15, 2024
|
The Washington Post
Homelessness, already at a record high last year, appears to be worsening among workers
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.
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.
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)
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."
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.
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.
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.
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
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.
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
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
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
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.
Photo by Towfiqu barbhuiya on Unsplash
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)
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.
Photo by Levi Meir Clancy on Unsplash
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.
Photo by Jorge Salvador on Unsplash
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