Home prices are currently outpacing income in practically every area of the United States. Real estate investors may not have much to do with wages, but there are many creative companies doing things to fill their units with appreciative tenants who might otherwise be displaced and forced to live on the fringes of society.
Affordable housing is always important, but sustained economic growth must have a stable quality of life available for all people in the area. Affordability of housing directly correlates with many factors like crime rates, addiction rates, academic achievement, and the list goes on. Whether you are building new structures or buying existing units, you should think about how you can help prevent an affordable housing crisis.
Micro-apartments
Tiny houses continue to fascinate and interest more people each year. The millennial generation did not live through The Great Depression, but they saw how The Great Recession sent panic through every economic sector and altered the lifestyle of millions of Americans.
These newly-forming households of young people are eager to embrace a more efficient and sustainable lifestyle. By using some modern architectural techniques and furnishings designed specifically for efficiency, apartments ranging in size from 250 to 400 square feet can provide a sense of roominess and adequate living space for some people. Nevertheless, some cities have laws that forbid constructing apartments that small. The concern is that cramped sub-standard living quarters could become the norm for people of low income. When designed and managed properly, however, micro-apartments can be a good solution that is desirable for people of every income level.
Neighborhood Stabilization Program
The Neighborhood Stabilization Program (NSP) was established by Congress to economically stabilize communities hard hit by foreclosures during the housing market collapse. The National Community Stabilization Trust has been very successful at redeveloping foreclosed and abandoned properties to prevent them from further depressing housing prices and causing neighborhood blight.
Investment groups can set similar goals to do their part to prevent an affordable housing crisis by making overall community development a top priority over just going after the quick money and low-hanging fruit options of real estate development.
Seeing the big picture
Every adult alive today witnessed how quickly all economic pillars can collapse when greed, incompetence, ignorance, and self-interest run rampant and unchecked. Only by considering how our actions will affect the lives of others can we ensure a stable economic future for ourselves and future generations. In today’s world, the course of action that helps the most people is also the best business decision.
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