Avanath CEO Daryl Carter Testifies Before House Financial Services Committee on the Topic of Infrastructure
NAA member and Founder, Chairman and CEO of Avanath Capital Management, Daryl Carter, testified before the House Financial Services Committee today on the infrastructure needs of America’s housing supply. Avanath focuses on housing for the low and middle of the income spectrum, serving families with incomes between $30,000 and $80,000 dollars, filling a vital need for residents.
In San Francisco, median one-bedroom rents topped $3,240, yet Avanath’s average rent there is $1,093. In Los Angeles, the average is $2,106, while Avanath averages $1,135. These results are staggering, and there is much to learn from the example that the company is setting.
There is a wide variety of households and circumstances that are driving the massive increase in demand for apartment housing. Just to meet demand, research shows that the industry will have to build 4.6 million new units of apartment housing by 2030, to say nothing of the 11.1 million units that will require significant maintenance and renovation if they are to be continued to be used in that same time. That number is far from our current rate of construction, but ready or not, residents are coming.
Whether they are Baby Boomers looking to downsize, or are Millennials looking to move closer to cities to take part in the bustling thought-economy, or foreign nationals moving to the United States (more than 25 percent of heads of households living in apartments were born outside the United States), the competition for the limited supply of housing creates challenges, though not unsolvable. All of these new residents will rely on the infrastructure needed to get them to their homes, to their work and to provide them with vital resources like water and electricity.
Carter’s testimony can be read here and focuses on what America must prioritize to ensure that the industry can build enough to meet this demand, and to take the pressure off of rising rents. According to a recent study, 32 cents out of every dollar used to develop apartment housing goes directly toward local, state and federal regulations.
We CAN bring down barriers to the construction of new rental housing by working together to streamline permitting and zoning processes, ensuring stable infrastructure funding to provide for new residents and encouraging new apartment housing development.