Is There a Housing Crisis

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Revision as of 02:34, 25 October 2021 by Marcin (talk | contribs) (→‎Data)
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Data

  1. 1000 sf size is acceptable [1]
  2. Cheapest new house is $94/sf at $200k - [2]
  3. Median house cost - $128k Mayville mo. [3].
  4. South midwest and south east, at $250k around for median price. [4]
  5. Detroit is like 1/3 the average housing cost! [5]
  6. Cost of low rent afforded by the poorest people makes apartment operating cost unsustainable? [6]
  7. Tax credits apply to those whose income is 60% of median [7]
  8. Extremely low income means 30% of median (AMI) [8]
  9. Current standard for affordability: no more than 30% of gross income [9]
  10. 60% of median rent in Denver is $900/mo. [10]
  11. Favela property values are on the rise and speculation + forced removals are in. [11]
  12. It costs $10M on average to build a 50 unit apartment. [12]
  13. 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. [13]
  14. Management expenses for apartments are 3-7% [14]. Ex. $25k for a complex that makes $500k/year. Also, cap rate is ratio of return after operating expenses to what you paid.
  15. Kanye West got into homeless housing, but no substance is apparent online -[15]
  16. Zero-down loans do exist - for rural homes, and veterans, and native Americans [16]
  17. Brookings Institution suggestions - good ones. One is a call for transparency of build (open source). [17]
  18. It costs $100-200/sf to build a house. [18]

Issues

  1. KC situation. Affordable is rent only of $700. [19]. 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? [20]
  3. Essential conflict of interest between big builder profits and affordability? [21]

Solutions

  1. Habitat does CEO Builds - [22]. 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.