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 | Nov 28, 2016
Marines plan first net zero energy military base
The Albany, Ga., site will have ground source heat pumps and a biomass generator.
Codes and Standards | Nov 18, 2016
Mahesh Ramanujam takes reins as U.S. Green Building Council President and CEO
Ramanujam brings his tech and business consulting background to the post.
Codes and Standards | Nov 18, 2016
Canada GBC launching Zero Carbon Buildings Initiative
First step toward Zero Carbon Building Standard.
Codes and Standards | Nov 17, 2016
Santa Monica, Calif., passes historic net-zero ordinance
Includes more stringent commercial, multifamily building standards.
Codes and Standards | Nov 14, 2016
Six more states approve legal marijuana, creating opportunities for developers
Federal prohibition complicates the picture.
Codes and Standards | Nov 14, 2016
Los Angeles voters approve billions to tackle traffic and homelessness
The approved measures will create new rail lines and permanent housing.
Codes and Standards | Nov 9, 2016
NRMCA updates environmental impacts of concrete
The EPD now includes 88 companies, 72 mixes.
Codes and Standards | Nov 9, 2016
Louisiana flood projections require urgent action, officials say
The 'no net loss’ prediction now seems unrealistic.
Codes and Standards | Nov 8, 2016
American Concrete Institute offers new guide for repair of concrete buildings
The guide provides assistance on assessment and rehab.
Codes and Standards | Nov 7, 2016
The AISC prequalified seismic moment connection standard is now available
You can download the 2016 version for free.
