Is There a Housing Crisis

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Revision as of 02:23, 25 October 2021 by Marcin (talk | contribs) (→‎Data)
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Data

  1. Median house cost - $128k Mayville mo. [1].
  2. South midwest and south east, at $250k around for median price. [2]
  3. Detroit is like 1/3 the average housing cost! [3]
  4. Cost of low rent afforded by the poorest people makes apartment operating cost unsustainable? [4]
  5. Tax credits apply to those whose income is 60% of median [5]
  6. Extremely low income means 30% of median (AMI) [6]
  7. Current standard for affordability: no more than 30% of gross income [7]
  8. 60% of median rent in Denver is $900/mo. [8]
  9. Favela property values are on the rise and speculation + forced removals are in. [9]
  10. It costs $10M on average to build a 50 unit apartment. [10]
  11. For apartment building - 20% is land, 40% construction. About 50% is capital and soft costs. About $70k/unit for construction, not including land. Average apartment is 900 sf. average $125/sf for construction. [11]
  12. Management expenses for apartments are 3-7% [12]. Ex. $25k for a complex that makes $500k/year. Also, cap rate is ratio of return after operating expenses to what you paid.
  13. Kanye West got into homeless housing, but no substance is apparent online -[13]
  14. Zero-down loans do exist - for rural homes, and veterans, and native Americans [14]
  15. Brookings Institution suggestions - good ones. One is a call for transparency of build (open source). [15]

Issues

  1. KC situation. Affordable is rent only of $700. [16]. If SEH costs $100k, can we do rehnt at $700/month? Link to a guy building affordable homes, 5 per year.
  2. Inclusionary (affordable) zoning - actually increases housing costs? [17]
  3. Essential conflict of interest between big builder profits and affordability? [18]

Solutions

  1. Habitat does CEO Builds - [19]. May not scale well without Extreme Manufacturing principles

Revenue Models

  1. Apartment complex economics. $700/mo. One year at $8.4k. Works with free land and utilities using Radical Waste Treatment.