Housing experts, industry insiders, as well as members of congress and cabinet officials gathered to discuss policies aimed towards providing additional rental stock housing forAmericans. One of the topics is wrapped around the hopes of lowering the overall costs of housing. Due to the current increase in Americans choosing apartments as their primary housing, NMHC estimates that this will create a $1.3 trillion dollar positive impact on our economy and over 12.3 million jobs within the industry. More supply means lower costs to renters.
Numerous participants spoke to the fact that there is currently a huge need to expand land supply. It is expected that over the next 12 years, 75 million adults, ranging in age 18-45 will enter the rental market and the majority will come from adults 45 plus.
Amongst the topics discussed are the challenges arising from the costs associated with the regulations stifling the construction of rental properties. NMHC, Katlin Daniels will release a study that shows that 32% of the cost to build new rental housing is a direct result of regulations. Such as, expanding local government fees, overlapping, long environmental studies and significant OSHA burdens. The study will also reflect that affordable housing initiatives are causing an estimated 8% increase in housing costs. Kaitlin Daniels, goes on to quote, “these costs are major impediments to providing sensible housing solutions to rental residents.”
Another topic of concern was the California ballot initiative to roll back current laws in order to keep market rates for rents in place. If the ballot initiative is successful, these new statues would put rent control measures in place throughout the State of California. Dr. Ben Carson, Secretary of Housing and Urban Development said,“rent controls don’t work. The most challenging rental markets in America are San Francisco and New York City, the two most heavily rent controlled areas of the country. More supply, not restrictive rental rates, are the answer.”
Jamie Pope, Multi-Housing Tax Specialist for Engineered Tax Services, Inc., attended and said, “the demand for more affordable, quality housing is prevalent throughout America. Finding initiatives to help lower the costs for renters and providing additional supply is always the first step.”