U.S. Housing Starts Fell 4.0% in July - WSJ

[Yonah Weiss]

I came a cross a recent article in the WSJ

Workforce multifamily housing for people between 80-120% of Area Media Income is probably the most needed type of housing in America, yet given land costs and construction costs, it is really difficult to make a deal work without government or non-profit type subsidies. 

WSJ says in this recent article that "despite historically low mortgage rates and rising wages, the housing sector has been strained by a low inventory of affordable homes propelled by rising construction costs and lack of land." 

Even though this article was referencing single-family home inventory, the same is true for multifamily housing. Perhaps a different tax credit program other than the low-income housing tax credit program should be established to address this increasing need, yet that type of program would be a drop of sand in the ocean regarding the overall need for it.

Thoughts?

[Jay Hinrichs]

in our area new construction MF has been booming but I think there is going to be an over saturation and some softening in rents and profromas with some partnerships stressed by not meeting the DCR requirements.

as for SFR its well not a Joke but it is a joke

by the time our government with all the rules and fees. it will cost us almost 100k per lot before we go vertical and not including the price of the dirt.. and affordable in our market would be new construction under 300k virtually impossible to provide that product under the current regulations .. then you take in the fact of tight labor and sub contractors jacking their prices for the last 5 to 7 years and well at least in our market you have to be north of 400k to have any hope of a profit on a new build SFR.

Infill is not a lot better given that lot prices are 100 to 300k per in the markets we work  which is Charleston and Portland.

used to be we could get infill lots in Indy for example for 20 to 40k those have doubled or more.. instead of buying rentals a few years back the better play would have been to load up on lots in these areas that are transitioning appreciation has been over 100%  ..