Hennessy Construction Services’ Post

Some new studies on how increasing housing supply leads to more affordability. A study about new market-rate apartments in Minneapolis - "estimated that, within five years, the aggregated chain of residential moves ultimately results in about 70 new openings for renters in lower-income neighborhoods for every 100 new market-rate apartments." Some take-aways: there is a need for an adequate amount of new supply delivered, coupled with the preservation and expansion of the affordable housing stock, and it takes time for the filtering effect of new housing to increase affordability elsewhere. Adequate and sustained housing development delivers affordability at scale. Communities that don't build enough total housing over time don't see improvements in affordability.

Higher density alone isn’t enough to alleviate Toronto’s housing crisis. Yes, Toronto’s new 60-unit as-of-right zoning is a win when it comes to improving the approvals process, but it’s not quite a gamechanger when it is restricted to 6 storeys instead of the needed 8 storeys to create family-oriented communities. As I told Real Estate News Exchange (RENX), 60-unit as-of-right helps the building economics but high government fees, land and building costs in Toronto are what’s really impeding our industry from bringing more livable communities with diverse unit mixes to market. A sustainable future for our housing market means building more truly family-oriented communities rather than 60-unit mid-rises tightly packed with studios. For it to work, you need the right unit mix. To get the right unit mix, you need larger lots and larger lots come at a cost or you need 8 storeys as of right.

Austin is significantly behind its target of building affordable housing units, as stated in a report from the City of Austin and HousingWorks Austin. The 2017 plan aimed for the construction of 135,000 new homes over a decade, half of them affordable to those earning under $65,000 per year. However, only a third of the anticipated homes have been built halfway into the timeline. Particularly, there is a significant shortfall in homes for those earning less than $25,000 annually. Challenges include securing sufficient funding and finding appropriate sites for construction. In certain expensive neighborhoods, such as West Austin, desired affordable housing units have not been built. On the positive side, the city has succeeded in preserving over half of its 10-year goal of existing low-income housing from extensive remodel or demolition.

We’re only at the mid-point of 2024, but an eyepopping stat we’ve seen is “apartment developers have built more units so far this year than they did in any year between 2001-2013, with 284k units completed.” Welcome to the apartment boom. New units are being built at a pace we have not seen in 50 years. It’s no mystery as a housing shortage carries on and has no true signs of slowing down. The last time we saw this was in the 1970s and it’s not all too surprising that we’re witnessing it again. “The shift and years of underbuilding have created a backlog of housing needs that even the current boom may struggle to satisfy.” Housing economist Jay Parsons is correct. The signs are there for a boom and as long as the single-family market keeps this up, it’s inevitable. #Apartments #Housing #MultifamilyHousing

Five charts that show which Bay Area cities are building the most housing. The region’s cities aren’t all pulling their weight equally when building more housing. Read on. #housing #housingmarket #multifamily

Veteran Housing Corp points out that not only are most Americans rent-burdened (spending more than 30% of their income on housing) but the younger generations are having to move back in with their parents and many parents who are supporting their children are risking their retirements to do so! The number one priority for all local, state, and federal officials should be to find a permanent solution to the affordable housing crisis facing most Americans and quit wasting taxpayer money on bank-aid fixes that are temporary and short-lived! Parents Are Risking Their Retirements to Support Adult Children https://lnkd.in/extbt-s9

When new market-rate apartments come online, everyone benefits. New apartments create a domino effect for the benefit of the entire community—opening doors of opportunity for all. In fact, for every 100 new market rate apartments, 70 apartments in low-income neighborhoods become available for renters, according to a new report from the Federal Reserve Bank of Minneapolis. See more on how increasing the housing supply increases housing affordability: https://lnkd.in/d-NryNm4

Build to rent is part of the evolution of the housing market.

Incentivizing the development of all types of multifamily supply, including capital "A" affordable properties, is crucial to address the affordable imbalance. When we improve housing affordability for everyone, we improve society stability. Let's work together to make housing more accessible and affordable for everyone. #affordablehousing #housingaffordability #newdevelopment

🏗️ The City of Toronto is making strides in affordable housing with a $351 million investment in 18 rental projects. The goal? To create over 6,000 new rental homes and edge closer to 65,000 affordable residences by 2030. 🌆 This initiative not only addresses housing affordability but sets the stage for a more inclusive and sustainable Toronto. The investment is a crucial step towards ensuring housing options for all residents. 💰 The move comes amidst rising rental costs, with the average rent for a two-bedroom condo apartment in Toronto reported at $3,139. This investment paves the way for a more accessible housing market for Torontonians. 🔨 With construction set to kick off this year and in 2025, Toronto is on track to meet its housing targets and provide more affordable living options for its residents. Kudos to the City of Toronto for taking proactive steps towards a more affordable and equitable housing landscape. #Toronto #AffordableHousing #CityDevelopment #HousingMarket #RealEstateInvestment Read more here: https://lnkd.in/gTJJwmJT