The first quarter of 2024 is likely to see continued demand for affordable housing communities in markets throughout the country and a call for creative financing partnerships among developers, according to Kasey Burke, President of Meta Housing.
“Demand for affordable housing units continues to outpace supply in so many areas of the country, particular in California where we complete these communities, and we do not see this momentum letting up any time soon,” says Burke. “We are tremendously grateful for the ongoing and new partnerships we have developed that allow us to continue to deliver affordable housing of excellent quality to those who need it most.”
While mortgage rates and home prices are expected to decrease slightly in 2024, market-rate housing remains out of reach for a wide swath of American individuals and families whose income has not kept pace with high inflation, rental rates, and housing costs. Affordable housing, which typically serves households earning 30% to 60% of median area income, is often the only viable solution for lower-income earners, particularly in parts of the country where housing costs are especially high.
“Despite an uptick in affordable housing construction, there is still a strong need for this type of development in markets like Southern California and the Bay Area where affordability is quite low,” notes Burke. “These markets are significantly dependent upon developers coming up with sustainable solutions for providing the market with apartment homes that are within residents’ budgets.”
Meta Housing has a history of creative financing and development partnerships with public and private organizations including The Foundation for Affordable Housing, Search to Involve Pilipino Americans (SIPA), Los Angeles Housing Department, California Tax Credit Allocation Committee, Capital One, Westport Construction, California Community Reinvestment Corporation, WSH Management, Y&M Architects, and Chase Community Development Banking—along with many others.
“These partnerships are critical for enabling these projects to pencil,” says Burke. “We expect to see a rise in affordable housing developers seeking public/private partnerships in Q1 in the midst of continued inflation and the critical need for affordable units throughout California.”