Apartment Wire - 07/20/2018 (Plain Text Version)
Bibby: Innovative Solutions to the Affordability Crisis
Housing affordability challenges have spread from the coastal cities to the middle of the country and from low-income households to middle-income working households. NMHC's President Doug Bibby tackles the sources of, and possible solutions to, the crisis in a new quarterly podcast with Multi-Housing News.
With federal funding for affordable housing largely shrinking, Bibby focused on state and local regulatory solutions such as zoning, land use, entitlement processes and even parking ratios that drive up development and redevelopment costs.
BIbby put a spotlight on cities taking innovative, and replicable, approaches to the problem, namely a two-year pilot voucher program Denver has funded to close the gap between what working households can afford to pay and market-rate rents. Importantly, local employers and foundations are helping fund the program to expand its reach.
"It doesn’t put everything on the shoulders of the multifamily landlords, it actually pushes it across the entire real estate spectrum, which is fairer because everybody has to be part of the solution to find houses for people who provide services in those communities," said Bibby.
More than a year in the making, last week, 29 real estate industry organizations announced a unique collaboration to recruit talent to the sector, beginning with an interactive web site that lets users explore how they can make a living and be rewarded by truly building communities. [return to top]
The apartment industry is not immune to disruption. In 2017, NMHC undertook an 18-month project to explore how our sector can plan for the forces headed our way. That work has now been recognized by a prestigious national awards competition. [return to top]
Groundbreaking new research provides city-level evidence of the nation’s massively overbuilt parking supply and the staggering cost to the public. NMHC has also identified reducing parking requirements as an opportunity to advance housing affordability in our Vision 2030 report. [return to top]
The value-add market has sparked a countermove by public and private entities to pool their capital to preserve low-income housing stock. Tax breaks and Opportunity Zones have created a surge in capital flowing into social impact investment funds. [return to top]
Short-term rental services are creating opportunities and challenges for apartment firms. NMHC and NAA have responded to related litigation with a “friend of the court” brief arguing that owners should have the right to choose whether to participate or not in the short-term rental market. [return to top]
The Brookings Institution’s Metropolitan Policy Program, explores the policies shaping today’s U.S. housing markets, specifically breaking down taxes, subsidies, and regulations to understand their impact. [return to top]
Urban systems, including co-living, co-working, mobility, delivery, smart cities, construction tech and real estate tech, are drawing billions of dollars in venture capital. In fact, urban tech attracted more funding than pharma and biotech ($16 billion in 2017) or artificial intelligence ($12 billion in 2017). [return to top]
NMHC's Emerging Leaders program will be in the Emerald City (Seattle) for the first time ever on September 19, 2018. Don't miss this unique opportunity to hear from one of the apartment industry's leading CEOs in a small-scale networking environment. [return to top]
Multifamily Market Dashboard
Air Conditioning a Hot Priority for Tenants
As hot temperatures blanket much of the U.S. this week, resident appreciation of air conditioning is probably even higher than when it reigned supreme for the majority of the over 270,000 apartment residents who were surveyed for the 2017 NMHC/Kingsley Renter Preferences Survey.
Almost all respondents (94 percent) said they were interested in having air conditioning in their homes, and, of the interested group, 92 percent claimed they wouldn’t rent without it. No other apartment feature included in the survey garnered this level of interest.
Some may be surprised to learn, then, that 13-16 percent of U.S. apartments don’t have air conditioning (estimates from the 2015 American Housing Survey and 2015 Residential Energy Consumption Survey, respectively, in Figure 1) and an additional 25-34 percent of units contain only individual-room air conditioners. Yet, as is illustrated in Figure 2, newly built apartment units are much more likely to contain some form of air conditioning compared with those built in prior decades.