A sharp increase in the housing supply gap is projected to worsen the affordability crisis, particularly for the disadvantaged, over the next year.
The gap will reach 4.5 million units in 2022, up from 2.5 million in 2018, according to a CoreLogic Public Policy Executive. This will be a crisis for those who earn less than half of what their neighbors do.
This cohort will face a shortage of 2.6 million units next year. People who earn more than what their neighbors earn will not be spared either, facing a gap of about 650,000 units in 2022.
Multiple factors are hampering development of more multifamily units. These include a rapid increase in material costs, such as a 150% spike in lumber prices in 2021. The necessity for multiple funding sources, adding complexity to deals, is another key factor.
Developers complain that the multiple financing sources needed for each project have deadlines that aren’t aligned. This results in longer timelines that add costs.
Related Stories
Codes and Standards | Jun 22, 2021
Actually, few companies plan to significantly reduce their office footprint
CBRE survey shows that many firms will continue with hybrid work.
Codes and Standards | Jun 21, 2021
Vancouver, B.C., may delay new zero emissions building standards
Building permit delays may postpone new standards by a year.
Codes and Standards | Jun 17, 2021
Buffalo’s parking reform having noticeable impact on development
Elimination of mandatory parking allotments encourages new projects.
Codes and Standards | Jun 16, 2021
Inconsistent building codes make some states more vulnerable to hurricanes
Florida takes top spot for strongest building code in latest IBHS survey.
Codes and Standards | Jun 15, 2021
Florida will allow virtual inspections, building code enforcement, permit issuance
New law will go into effect on July 1, 2021.
Codes and Standards | Jun 10, 2021
New York City cracks down on construction site safety
Buildings Dept. issues new safety legislation for City Council consideration.
Codes and Standards | Jun 9, 2021
ASHRAE updates health care facility ventilation standard
Includes improved guidance on thermal comfort, revisions to air filtration requirements.
Codes and Standards | Jun 8, 2021
American Wood Council releases new fire design specification
For design of wood members, assemblies, and connections to meet code requirements.
Codes and Standards | Jun 7, 2021
Guide provides strategies to overcome barriers to sustainable affordable housing
International Living Future Institute document helps with social, regulatory, and financial hurdles.
Codes and Standards | Jun 3, 2021
Conversion of large office buildings to residential will require revamped regulations
Post-1960 offices present ventilation, daylighting, and other challenges.
