As fundamentals remain strong in the U.S. apartment market, developers continue to ramp up construction of conventional properties. But his building spree could be having an inadvertent effect on the affordable housing sector – and not in a way that results in additional affordable units. Instead, the historically high levels of conventional apartment construction have driven up development costs. And that could further squeeze affordable development, as funding for affordable apartments is not rising to offset the higher price tag to build. All the while, demand for affordable supply continues to be high, as wage growth is limited and the number of renting households grows.
Read more...Affordable Multifamily Supply is Squeezed by Development in the Conventional Market | Property Management Insider
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