Too often, affordable housing evokes negative imagery and this is used to sway policymakers to oppose these developments.
There is a well-known saying in politics, “never let a perfectly good crisis go to waste.” When people hear this for the first time they are often taken aback because a crisis is something you avoid, much less something you take advantage of. I believe the dilemma that we are experiencing with affordable housing is an opportunity for our industry to shine—let me explain.
The public is realizing something that operators of apartment housing have known for a long time: We are experiencing a severe shortage of affordable housing – some would say a crisis level. Not just in subsidized affordable housing, but affordable market-rate housing as well.
The root of the crisis lies in the fact that municipalities have not approved the diversity of housing needed to keep up with demand. This has created an imbalance that negatively affects both affordability and availability in all forms of housing, not just rental housing.
You don’t need to be an economics professor to know what the result of too many people chasing too few units will be. Beyond the immediate concerns, there are long-term consequences of this housing imbalance. Consider that one of the largest expenses for a family is already the cost of housing. A housing shortage commands that an even greater share of income go to housing, taking away from other priorities like long-term financial planning. The sad truth is that Americans are retiring with little to no savings.
What is getting in the way of solving this housing crisis? Cost and desire.
The cost to build is well documented, so I will not spend much time on it. In general, developers are challenged to make affordable housing pencil out due to lengthy entitlement process as well as land and construction costs. However, with the aid of subsidies like tax abatements and other forms of public assistance, it can be overcome.
The real hurdle is desire. Does a municipality have the desire to build affordable housing in the face of NIMBY (Not In My Backyard) opposition?
These challenges have caused affordable housing options to decrease or disappear for the many people who need it most. I can tell you from my experience at Churchill Residential, we treat each opportunity to provide housing as an opportunity to change a life. I feel if we could convey this urgency to our elected leaders, we can ignite that desire.
NAA has long been an advocate of affordable housing initiatives, and remains committed to the to this cause; however, our industry needs to proactively reach out to our elected officials at the federal, state and local levels to promote quality, well maintained affordable housing.
This is our industry’s opportunity to use this crisis and promote what we have to offer. Too often affordable housing evokes negative imagery and this is used to sway policymakers to oppose these developments. One of the easiest ways to dispel this view is to invite elected officials to affordable multifamily rental properties. I can tell you, they always leave impressed. Education is how youchange the hearts and minds of those opposed to affordable housing.
The membership of NAA has amassed an impressive track record of providing affordable housing.
Bill Wollinger of WinnResidential has one of the largest portfolios of affordable rental housing the nation. WinnResidential has many properties located on the East and West Coasts and throughout the country. Bill’s company is making a major difference in providing affordable housing solutions.
Lori Trainer’s organization, Southern Affordable Services, Inc. has taken a more comprehensive approach—addressing affordable housing shortages, as well as providing housing for the homeless veterans and other impoverished communities.
While these are just two examples of the fantastic work NAA members are engaged in to address the affordable housing crisis, it’s critical that all NAA members get involved. This can be done in a variety of ways:Invite elected officials to affordable multifamily rental properties; educate yourself on affordable housing issues so you can be an effective advocate; serve on the NAA Affordable Housing Committee; submit articles to units Magazine. With your help, NAA will continue to lead the charge to solve affordable housing challenges.
Robert Tinning is Executive Vice President Churchill Residential