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
Codes and Standards | Aug 29, 2018
The 2018 IAPMO solar and swimming pool codes now available
For installation and inspection of public and private swimming pools, spas, and hot tubs.
Codes and Standards | Aug 28, 2018
New York’s green roof program needs reform
Despite incentives, few owners add vegetative roofs.
Codes and Standards | Aug 24, 2018
Resilience, sustainability emphasized in plans for new 23,000-acre city in the Philippines
“A backup for when Manila fails.”
Codes and Standards | Aug 23, 2018
Cities promote deconstruction of old homes with mixed results
Market factors complicate efforts to recycle material from old structures.
Codes and Standards | Aug 22, 2018
Oregon is first state to change building code to allow tall mass timber buildings
Statewide alternate method allows early technical consideration and approval.
Codes and Standards | Aug 21, 2018
First mass timber panel made from structural composite lumber gets APA certification
Said to be much more cost effective than CLT options.
Codes and Standards | Aug 17, 2018
Zoning changes can be crucial to filling large, empty retail spaces
Alternative uses often require action by local officials.
Codes and Standards | Aug 16, 2018
Nearly a quarter of opioid overdose deaths attributable to construction workers
Massachusetts public health study finds pressure to work in pain contributes to problem.
Codes and Standards | Aug 15, 2018
ICC creates new committee on building safety and security
Will include experts from many different disciplines.
Codes and Standards | Aug 14, 2018
Philadelphia adopts 2018 IECC energy code, while state opts for 2015 code
City is one of the first jurisdictions to adopt newest code.