Opinion: The capital structure solution hiding inside the housing crisis
The ROAD to Housing Act targets new supply, but aging workforce housing needs preservation capital. With stock at a 45-year median age and 7 million fewer units under $1,000, the column argues for financing stabilized housing like infrastructure.
The ongoing housing crisis has brought attention to the need for new supply, but the issue of preserving existing workforce housing is just as critical. The ROAD to Housing Act's focus on new supply is a step in the right direction, but it does not address the aging workforce housing stock that is in dire need of preservation capital. With the median age of housing stock at 45 years, it is clear that many of these units are in need of renovation or rehabilitation to remain safe and habitable.
The decline of 7 million units priced under $1,000 per month is a stark reminder of the affordability crisis facing many communities. The argument to finance stabilized housing like infrastructure is a compelling one, as it recognizes the long-term value and importance of preserving existing housing stock. This approach could provide a much-needed injection of capital into the preservation of workforce housing, helping to maintain affordability and prevent further displacement of low- and moderate-income families.
As the industry continues to grapple with the housing crisis, it will be important to watch how policymakers and investors respond to the call for preservation capital. The treatment of stabilized housing as infrastructure could be a game-changer for the industry, providing a new avenue for financing and investment. ASIDNews readers should keep an eye on developments in this space, as it has the potential to impact the availability and affordability of housing in communities across the country.
Originally reported by housingwire.com. ASIDNews adds analysis for real estate & property readers.