Why Aren’t We Investing in Affordable Housing?
Affordable housing is incredibly popular across the economic spectrum. Building more of it is crucial to our country’s future.
May 20, 2021
America has an affordable housing crisis.
Any hope that Covid-19 would cool off the housing market and improve accessibility faded quicker than our social lives. Instead, the pandemic added fuel to the fire by exacerbating a supply-and-demand imbalance that has sent prices soaring.
As a result of the boom in the housing market, affordable housing—which is typically defined as the occupant paying no more than 30% of their gross income for housing costs—has become far more scarce. In addition to rising rents and home prices, lower-income residents find themselves dealing with property owners who can be more selective with their tenants.
The issue is urgent.
Nearly half of lower-income adults say they’ve had trouble paying their bills during the pandemic, and about one-third say it’s been hard for them to manage their rent or mortgage payment. Overall, a quarter of Americans have had trouble paying their bills since the coronavirus outbreak started.
Affordable housing is not only more important than ever before, but it’s also extremely popular. About 71% of Americans say they are in favor of building more housing if that would make their neighborhood more affordable.
And everyone stands to benefit. Affordable housing supports the economic vitality of communities by preventing sprawl and attracting employers and workers. It provides much-needed stability for at-risk individuals and families, decreasing the risk of homelessness for low-income residents. It also provides high financial returns for investors.
So why isn’t more of it being built?
Unfortunately, there’s no simple answer. Affordable housing is up against the infamous Not In My Backyard (NIMBY) sentiment that has been brewing in many communities across the country. Developers face restrictive zoning regulations, high building costs, and a lack of reasonably priced land to build on.
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Crowdfunding seems like the answer since it theoretically allows developers to source value from the masses who support building more housing. In practice though, legal barriers, drawn out timelines, and marketing costs often make crowdfunding an unattractive, if not unfeasible option.
So, we came up with a better way.
By democratizing investment in multifamily properties, we’re lowering the financing cost of building these affordable communities that are in such short supply while giving the people who live in those communities an opportunity to build wealth. With the ease of investing with Rhove, we’re empowering you to own real estate all over the country, including in your very own community. That way you can vote with your dollars and tell the world, “YES in my backyard!”
We believe deeply that building affordable housing is a critical need, as well as an opportunity to unlock value for everyone. Traditionally, ownership in our communities has only been accessible to the wealthiest Americans (“Accredited Investors”)—we’re bringing ownership to the masses.
As we come out of the pandemic, in a K-shaped recovery, demand for affordable housing is likely only to grow. As a country, and within our communities, we have a moral imperative to solve this problem.
Join our waitlist and help shape the future of real estate investment by turning everyone into an owner.