A sharp increase in the housing supply gap is projected to worsen the affordability crisis, particularly for the disadvantaged, over the next year.
The gap will reach 4.5 million units in 2022, up from 2.5 million in 2018, according to a CoreLogic Public Policy Executive. This will be a crisis for those who earn less than half of what their neighbors do.
This cohort will face a shortage of 2.6 million units next year. People who earn more than what their neighbors earn will not be spared either, facing a gap of about 650,000 units in 2022.
Multiple factors are hampering development of more multifamily units. These include a rapid increase in material costs, such as a 150% spike in lumber prices in 2021. The necessity for multiple funding sources, adding complexity to deals, is another key factor.
Developers complain that the multiple financing sources needed for each project have deadlines that aren’t aligned. This results in longer timelines that add costs.
Related Stories
Geothermal Technology | Jul 29, 2024
Rochester, Minn., plans extensive geothermal network
The city of Rochester, Minn., home of the famed Mayo Clinic, is going big on geothermal networks. The city is constructing Thermal Energy Networks (TENs) that consist of ambient pipe loops connecting multiple buildings and delivering thermal heating and cooling energy via water-source heat pumps.
Smart Buildings | Jul 25, 2024
A Swiss startup devises an intelligent photovoltaic façade that tracks and moves with the sun
Zurich Soft Robotics says Solskin can reduce building energy consumption by up to 80% while producing up to 40% more electricity than comparable façade systems.
Codes and Standards | Jul 25, 2024
GSA and DOE select technologies to evaluate for commercial building decarbonization
The General Services Administration and the U.S. Department of Energy have selected 17 innovative building technologies to evaluate in real-world settings throughout GSA’s real estate portfolio.
Office Buildings | Jul 22, 2024
U.S. commercial foreclosures increased 48% in June from last year
The commercial building sector continues to be under financial pressure as foreclosures nationwide increased 48% in June compared to June 2023, according to ATTOM, a real estate data analysis firm.
Codes and Standards | Jul 22, 2024
Tennessee developers can now hire their own building safety inspectors
A new law in Tennessee allows developers to hire their own building inspectors to check for environmental, safety, and construction violations. The law is intended to streamline the building process, particularly in rapidly growing communities.
Codes and Standards | Jul 22, 2024
New FEMA rules include climate change impacts
FEMA’s new rules governing rebuilding after disasters will take into account the impacts of climate change on future flood risk. For decades, the agency has followed a 100-year floodplain standard—an area that has a 1% chance of flooding in a given year.
Sustainability | Jul 18, 2024
Grimshaw launches free online tool to help accelerate decarbonization of buildings
Minoro, an online platform to help accelerate the decarbonization of buildings, was recently launched by architecture firm Grimshaw, in collaboration with more than 20 supporting organizations including World Business Council for Sustainable Development (WBCSD), RIBA, Architecture 2030, the World Green Building Council (WorldGBC) and several national Green Building Councils from across the globe.
MFPRO+ News | Jul 15, 2024
More permits for ADUs than single-family homes issued in San Diego
Popularity of granny flats growing in California
Codes and Standards | Jul 15, 2024
New York City code update changes definition of a major building
Changes affecting how construction projects in New York City are permitted will have significant impacts for contractors. On Dec. 11, the definition of a major building in the city’s code will change from 10 stories to seven, or 75 feet. The change will affect thousands more projects.
Government Buildings | Jul 8, 2024
GSA adopts new accessibility guidelines for federal properties
The U.S. General Services Administration (GSA) adopted a new rule with new accessibility guidelines for federal buildings. The rule establishes that pedestrian facilities in the public right-of-way are readily accessible to and usable by people with disabilities.