The National Low Income Housing Coalition report shows Texas only has 29 available and affordable rental homes per 100 extremely low-income renters. The report ranks Houston, Dallas, and Austin in the top ten worst major metro cities for affordable housing.

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Source - iStockphotos

With climate change making severe weather events more common and the area’s housing crisis increasing the number of people who need support, the operation of the shelters is taking an increasing toll on county and city officials and budgets, as well as the community volunteers whose labor the region relies on to run the shelters.

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Image credits - Mika Baumeister/Unsplash

On January 10, 2023, Governor Kathy Hochul announced a statewide strategy to address New York’s housing crisis. This new plan, named The New York Housing Compact, aims to build 800,000 new homes over the next decade to meet the state’s historic housing shortage.‍

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Hochul’s Compact would have boosted housing production in New York City’s suburbs, by overriding local planning boards that limit most land to single-family detached homes. However, it didn't make it past the State Budget after heated negotiations at the State Legislature.

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What is next for New York's affordable housing future?

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Imade credits - Mike Groll/Office of Governor Kathy Hochul

In recent years, Florida has become one of the least affordable places to live in the nation, making affordable housing one of the top issues impacting Floridians. While the state’s reputation as a place for leisurely coastal living has made it a popular retirement destination for seniors, Florida has also seen an influx of young, high-earning professionals from states like New York, where the median home price is nearly double that of Florida’s. While individuals from states like New York or California — two states with some of the highest average incomes in the country — may find Florida to be more affordable, everyday Floridians are paid lower wages on average and renters in Florida have historically been more cost-burdened than any other state in the nation. In the span of just two years, median rent prices increased by over 30 percent across the state, from about $1,340 in February 2020 to roughly $1,760 in February 2022. To afford a modest one-bedroom rental home at fair market rent, a person earning $10 per hour (the state’s minimum wage for most of 2022) would need to work 86 hours per week.

In the first quarter of 2024, home prices increased in 93% of U.S. metro areas, with significant growth observed in 30% of these markets. The national median price for single-family homes rose to $389,400, marking a 5% year-over-year increase. The South led in sales volume, while the Northeast saw the highest price appreciation. Despite high mortgage rates, market conditions improved slightly for buyers due to a marginal decline in required mortgage payments compared to the previous quarter.

After Kathy Hochul's failed New York Housing Compact plan last year, New York State is trying again to tackle its severe housing crisis. According to anonymous sources close to the deal, New York state leaders have reportedly reached a tentative agreement on a legislative plan to tackle the crisis and will be presented to the full Senate and Assembly on Monday. The framework of the deal offers incentives for both developers and tenants. Developers would receive significant tax breaks to develop more affordable units, while tenants would benefit from enhanced protections against eviction in certain cases. Additionally, the agreement would allow landlords of rent-stabilized apartments to raise rents for renovation costs and eliminate size restrictions on new Manhattan apartment buildings, fulfilling long-standing desires of city officials.

The housing market for buyers in California is becoming increasingly challenging. Prices are soaring while the inventory remains limited. Statistics reveal a stark reality: home prices have surged 9.7% over the past year, with the median home price now at $813,980. Meanwhile, inventory levels have plummeted by 48.3%, exacerbating the affordability crisis. Despite historically low mortgage rates, competition remains fierce, leading to bidding wars and further price escalation. Experts suggest that while the market may stabilize in the long term, immediate relief for buyers appears unlikely.

Currently, the average rate for a 30-year mortgage stands at around 6.9%, a significant decrease from late October when it peaked at nearly 8%. Despite expectations of rates declining later in the year, some buyers are opting to act now due to fears of increased competition. The combination of high mortgage rates and soaring home prices has made affordability a major concern, with many households earning less than what's needed to afford a median-priced home. While economists anticipate mortgage rates easing, uncertainty remains.

There are ongoing bipartisan efforts at various levels of government to address housing supply and pricing challenges in the United States. The importance of local action in addressing these issues, particularly through measures such as accessory dwelling units (ADUs), changes in zoning rules, and reduction of lot sizes, is increasingly becoming evident. Despite political differences, lawmakers in some states are collaborating on bipartisan housing legislation. However, challenges such as NIMBYism hinder progress at the local level, prompting calls for state-level intervention to overcome resistance to housing reforms. 

Los Angeles Mayor Karen Bass took office in 2022 and since then, has been making a big push to address homelessness, particularly in Venice Beach. Mayor Bass initiated the Inside Safe program to provide motel rooms for homeless residents, resulting in cleaner sidewalks and parks in Venice Beach. However, challenges persist, including budgetary constraints and the need for permanent housing solutions. Critics accuse Bass of prioritizing aesthetics over long-term solutions, while supporters applaud her urgency in tackling the crisis. Despite progress, concerns remain about the sustainability and effectiveness of current efforts, highlighting the complex nature of addressing homelessness in Los Angeles.

Although Texas builds more homes than any other state, it’s not building enough to keep up with its massive population and economic growth, leading to historically high housing costs, according to housing advocates, builders and real estate experts. By some estimates, the state is short hundreds of thousands of homes.A sweeping agenda to slow Texas’ substantial rise in housing costs by reining in local regulations that opponents say get in the way of building new homes has died quietly in the Texas Legislature.

As rents skyrocketed in the aftermath of the pandemic and have continued squeezing Nevadans in the last year, local officials on numerous occasions stressed state law restricted them from taking action to address the housing crisis. Now given a chance to weigh in on legislation that would clarify their authority, local governments have been mostly silent on the matter.

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Image credits - iStockPhoto

"Florida Senate Bill 102 is among the most impactful legislation to stimulate the new construction of affordable housing that’s taken effect in Florida. The bill increases funding availability and provides important incentives to make affordable housing more feasible. However, Senate Bill 102 alone is not a silver bullet. Without increased engagement from local governments and increased local and federal affordable housing subsidies, communities will continue to experience an affordable housing supply that is far below the increasing need." – Jake Morrow, Principal, Interurban.

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Integra Investments and Centennial Bank executives discuss this major legislation, as well as their efforts to ease Miami's housing crisis.

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Image: Program logo from the Florida Housing Finance Corp. website

Many in New York hoped that the final version of the state’s $229 billion budget would include provisions to prevent cities and towns from limiting themselves exclusively to the construction of single-family homes. However, the Governor's Housing Compact plan was abandoned when it proved too controversial to keep budget negotiations with the Legislature moving along. Read about what this missed opportunity could cost the state.

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Photo by Tom Rumble on Unsplash

Arizona is short more than 200,000 homes to match demand and lawmakers proposed to fix that by changing local zoning regulations to make building easier, a strategy that has drawn heated opposition from cities across the state.

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Image credits - Unsplash

Developers are analyzing how to take advantage of Florida’s new legislation, which will set aside over $700 million in funding, create tax breaks, and provide zoning-related incentives for affordable and workforce housing developments. 

The law could contribute to a new boom in housing development, from entirely affordable buildings to mixed-income towers on commercial sites that developers are now looking to purchase, experts say. The Live Local Act, which Gov. Ron DeSantis signed last week, aims to help fill financing gaps, making more developments economically feasible. What is still crucial, attorneys and developers said, is combining that with incentives on the local level. he new legislation sets aside $259 million in SAIL (State Apartment Incentive Loan) funds. It also promises $252 million in SHIP (State Housing Initiatives Program) funding to incentivize local governments to partner with developers preserving or building new housing. The law goes into effect July 1. Developers are expected to apply for incentives this summer, and receive funds next year. If developers don’t have to pay property taxes (beginning in 2024), they can count on a project generating more net operating income, which means they can borrow more debt. Ultimately, that means they could develop more units, experts said. The huge increase in construction costs — including the price of land, debt, labor and materials — and insurance have contributed to the lack of affordable housing.

The Live Local Act aims to remedy some of that. It will put $100 million in non-recurring funds into a competitive loan program that developers could tap to cover inflation-related cost increases for Florida Housing and Finance Corporation-approved multifamily developments that haven’t broken ground yet.

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Image: Brian Sidman, Keith Poliakoff, J.C. De Ona and Jake Morrow (Source: Getty)

According to a recent market study report by Arizent, where the company surveyed professionals across different financial segments such as banking, insurance, mortgage, technology etc, there is a range of different opinions about AI. Most respondents have concerns over job displacement and ethical considerations persist, especially regarding generative AI's accuracy and fairness. The general attitude among mortgage professionals is to be hyper cautious towards adopting generative AI, and they citied uncertainty and budget constraints as top considerations. Some of the main concerns of industry professionals regarding the adoption of AI includes loss of personalized customer interactions and job security. Despite apprehensions, there's acknowledgment of AI's potential to enhance efficiency and job performance, with expectations of AI handling a significant portion of tasks within the next five years. While efficiency gains are anticipated across various industries, banking professionals foresee AI primarily bolstering fraud protection.

In California, state and local governments have allocated substantial funds for affordable housing initiatives. Despite widespread acknowledgment of the need for affordable housing, publicly funded initiatives face challenges such as labor agreements and bureaucratic processes, which can inflate costs and slow down construction. Many private firms are moving away from a reliance on government funds, which according to them, drives up development cost owing to the red tape. Instead, these firms are exploring alternative financing models. 

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For example, SDS Capital Group is raising an impact fund from private investors, to build a 49-unit low-income housing project in South Los Angeles. While privately financed projects may still rely on government support for operation, recent regulatory changes have facilitated approvals and increased profitability for such developments. Concerns linger regarding the long-term maintenance and sustainability of privately funded housing projects, particularly regarding the welfare of residents and the availability of federal funding for rental assistance programs. Nevertheless, advocates see potential in private-equity models to drive down construction costs and inspire government reform in affordable housing initiatives.

During the recent legislative session, House Bill 2474, aimed at holding Washington cities accountable for building affordable housing and shelters, gained momentum before dying at the Senate. Championed by Rep. Strom Peterson, the bill was prompted by instances like Kenmore's rejection of a 100-unit affordable housing project, drawing criticism from Governor Inslee for obstructing solutions to homelessness. Evolving over the session, the bill proposed fiscal penalties for non-compliant cities, emphasizing mediation between cities and housing developers before enforcement. Despite setbacks, advocates like Michele Thomas stressed the urgency of addressing homelessness, a critical issue highlighted by over 28,000 homeless individuals counted in Washington during the 2023 Point-in-Time count. With hopes for its return next year, the bill reflects a statewide imperative to bridge the gap in housing needs, projected to exceed 500,000 units for low-income earners over the next two decades.

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Photo by Zhifei Zhou on Unsplash

There has been an emergence in partnerships between healthcare systems and affordable housing developers, such as the H3C project in New Orleans, aiming to integrate stable housing with better health outcomes. Supported by investments from entities like Aetna and Kaiser Permanente, these initiatives reflect a growing recognition among health organizations of the benefits of addressing housing insecurity. While healthcare systems are not acting as banks, they are bridging gaps in funding for affordable housing, leveraging resources to meet community needs and their own nonprofit requirements. Such collaborations extend beyond traditional housing projects to include specialized care facilities and initiatives targeting populations with the greatest needs. Additionally, healthcare systems are exploring innovative approaches, including utilizing their land assets and collecting data to inform future partnerships and interventions aimed at addressing health and housing disparities.

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Photo by Nice Trip on Unsplash

Leaders in New York’s State Senate are set to propose sweeping legislation to counter the growing housing crisis in the state of New York. The proposed legislation by leaders in New York’s State Senate aims to address the housing crisis through several key points:

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• Creation of a new public benefit corporation to finance housing construction on state-owned land, inspired by the Mitchell-Lama program.
• Introduction of a new developer tax break with stronger affordability protections than the previous 421a program.
• Inclusion of "good cause eviction" legislation to restrict landlords' ability to evict tenants and justify rent hikes.
• Push for more construction of larger residential buildings in Manhattan and legalization of basement units.
• Requirement for condos and rentals built through the program to be affordable to middle-income households.

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The proposal will be released as part of the One House budget bill, to incentivize significant new development while supporting landlords and tenants. However, its success hinges on gaining support from both houses of the Legislature and the governor, with details such as financial viability and inclusiveness of tenant protections remaining crucial factors.

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Photo by Jan Folwarczny on Unsplash

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Veterans Affairs (VA) announced the allocation of over $14.5 million to public housing agencies (PHAs) nationwide to address veteran homelessness. An estimated distribution of more than 1,400 HUD-Veterans Affairs Supportive Housing (HUD-VASH) vouchers will be carried out nationwide. Some of the highest concentration of vouchers will go to Tucson, Arizona; Philadelphia; and Spokane, Washington. These vouchers combine rental assistance from HUD with support services, like case management and clinical services provided by VA. The vouchers have contributed to a 4% decrease in veteran homelessness since 2020 and has housed over 46,000 homeless veterans in 2023 alone.

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Photo by Benjamin Faust on Unsplash