Paving the Way to Deal with Affordable Housing Challenges
The higher demand for multifamily housing has led to a shortage of affordable housing in the US. The situation has put the low-income group families at a higher risk of homelessness and may have a negative impact on the education, employment and health sectors. The situation can become worse because the government funding for affordable housing has decreased over the time.
What Leads to Affordable Housing Crisis?
The reason behind extreme shortage of affordable housing is because e wages are not coherent with the housing cost. According to a report by the National Low Income Housing Coalition (NLIHC), there are only 31 affordable units available for every 100 extremely low income renter households..
The State of Affordable Housing
Affordable housing is a not only a problem for many low-income households but even the middle class who earn a decent income struggles to find an accommodation that fits into their budget in some metropolitan areas such as Greater New York and Bay Area.
The NLIHC study also revealed that in 2014, the hourly wage a full-time worker needed to earn to afford a two bedroom rental unit was $18.92. The average is two and a half times more than the federal minimum wage and 52 percent higher the wage that was in 2000. The study also revealed that a major share of the American population is looking for rental properties because this is a more convenient option than buying.
Multifamily properties are seen as a solution to the rising affordable housing problem. Constructing an affordable property may look like a difficult task because constructing a house involves huge investment and with lower rent, multifamily property owners may incur loss.
Multifamily Properties and Modular Construction
Multifamily owners can actually offer more affordable rental units to home seekers by cutting down on the cost of construction of property.. An effective solution is to opt for modular construction as it may help to achieve the goal because of the lower construction cost involved and quick turnaround. In addition to this,as modular projects are replicable, multifamily property owners planning to work on more projects will end up saving the design cost.
Here are a few more interesting facts about modular properties:
Modular homes or also called as the pre-fab homes are money savers because they are constructed at a manufacturing unit and are quick to be assembled within a matter of weeks. While a lesser cost is involved in constructing a modular, affordable multifamily housing unit, time involved in the project completion is also less. Both these factors can help property owners save a significant amount of money and start earning by giving the units on rent in less time.
The higher demand for multifamily housing has led to a shortage of affordable housing in the US. The situation has put the low-income group families at a higher risk of homelessness and may have a negative impact on the education, employment and health sectors. The situation can become worse because the government funding for affordable housing has decreased over the time.
What Leads to Affordable Housing Crisis?
The reason behind extreme shortage of affordable housing is because e wages are not coherent with the housing cost. According to a report by the National Low Income Housing Coalition (NLIHC), there are only 31 affordable units available for every 100 extremely low income renter households..
The State of Affordable Housing
Affordable housing is a not only a problem for many low-income households but even the middle class who earn a decent income struggles to find an accommodation that fits into their budget in some metropolitan areas such as Greater New York and Bay Area.
The NLIHC study also revealed that in 2014, the hourly wage a full-time worker needed to earn to afford a two bedroom rental unit was $18.92. The average is two and a half times more than the federal minimum wage and 52 percent higher the wage that was in 2000. The study also revealed that a major share of the American population is looking for rental properties because this is a more convenient option than buying.
Multifamily properties are seen as a solution to the rising affordable housing problem. Constructing an affordable property may look like a difficult task because constructing a house involves huge investment and with lower rent, multifamily property owners may incur loss.
Multifamily Properties and Modular Construction
Multifamily owners can actually offer more affordable rental units to home seekers by cutting down on the cost of construction of property.. An effective solution is to opt for modular construction as it may help to achieve the goal because of the lower construction cost involved and quick turnaround. In addition to this,as modular projects are replicable, multifamily property owners planning to work on more projects will end up saving the design cost.
Here are a few more interesting facts about modular properties:
- The value of a modular property doesn't depreciate, so they hold equal profits in the future as their on-site built counterparts
- Modular properties are considered to be green homes
- The time taken in constructing a modular property is lesser than the site-built home
- Modular properties can withstand 175mph winds
Modular homes or also called as the pre-fab homes are money savers because they are constructed at a manufacturing unit and are quick to be assembled within a matter of weeks. While a lesser cost is involved in constructing a modular, affordable multifamily housing unit, time involved in the project completion is also less. Both these factors can help property owners save a significant amount of money and start earning by giving the units on rent in less time.