Apartment Industry to Congress: Lets Meet Rental Housing Demand
Digested from The Nation Needs to Invest in Rental Housing, says Apartment Industry
To meet the growing demand for rental housing in the United States, a representative from the apartment industry urged Congress at a March 22 hearing to preserve subsidy programs and fix up existing housing stock.
As National Apartment Association highlighted in its 2015 annual report, apartment demand is up and more people than ever are choosing to rent instead of own a home. While the number of renter households may be growing steadily, not enough apartments are being built to meet this need, Clyde Holland, chairman and CEO of Holland Partner Group, told the House Committee on Financial Services Housing and Insurance Subcommittee.
Almost 75 million young adults are entering the housing market, primarily as renters. At the same time, baby boomers and empty nesters are trading single-family houses for rental apartments. This combination of factors is forecast to lead to 4 million new renter households over the next decade, Holland testified on behalf of the NAA and the National Multifamily Housing Council.
However, the apartment building boom isnt keeping up, he cautioned. Just over 200,000 apartments were built in 2011 to 2015, which is not nearly enough to meet the expected demand of an additional 300,000 to 400,000 apartments annually.
Holland outlined a number of factors that have stymied or slowed development of new apartment homes such as building costs that exceed what renters can afford, zoning rules, impact fees, entitlement expenditures, building code requirements, environmental site assessments and inclusionary zoning.
Holland invited lawmakers to convene a task force to bring together the public and private sectors so as to embrace all the tools at our disposal in order to meet the tremendous challenge of affordable housing production.