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 | Jun 29, 2020
New buildings can fall short of designed performance
Similar structures can produce different energy usage results.
Codes and Standards | Jun 25, 2020
Arc offers tools, analytics for safe workplace re-entry
Platform helps sustainability teams to collect data, benchmark progress, measure impact, and improve performance.
Codes and Standards | Jun 24, 2020
New API enables design and construction technology platforms to connect
Construction Specifications Institute offers “digital classification engine.”
Codes and Standards | Jun 23, 2020
State lawmakers encouraging transition to heat pumps for building heating
Policies aim to replace gas heaters with electric units.
Codes and Standards | Jun 22, 2020
Natl. Renewable Energy Labs, Cold Climate Research Ctr. team up on extreme weather research
Focus on renewable power, sustainable transportation, energy efficiency, and energy systems integration.
Codes and Standards | Jun 19, 2020
Demand for family rentals expected to jump over next few years
Developers’ focus on single, urban millennials leaves family market underserved.
Codes and Standards | Jun 17, 2020
AIA offers retail and office 3D models for reducing risk of COVID-19 transmission
For modifying stores and offices with 17-point architectural, engineering, and administrative framework.
Codes and Standards | Jun 17, 2020
Santa Fe is second city in the world to achieve LEED v4.1 Gold
New Mexico community gained credits for resilience planning, including public health crises.
Codes and Standards | Jun 15, 2020
NSF International’s Checked by NSF program helps businesses reopen safely
Includes third-party validation of COVID-19 preventive measures.
Codes and Standards | Jun 15, 2020
Workers want policy changes before they return to offices
More office cleaning, work from home opportunities, and staying home when sick among the desired adjustments.