NOTEBOOK – ONE GOOD READ: How economy is affecting affordable housing developments
BPC Staff Sep 7, 2022 | 3:04 pm
1 min read time119 wordsAll Latest News, Real Estate & Development, The Insider Notebook
Rising interest rates, inflation and supply chain challenges are forcing developers nationwide to delay work on new affordable housing units during a time when there’s a dire need for the product, writes Rebecca Picciotto for the Wall Street Journal. While the disruptions affect all types of projects, they are especially detrimental to those involving affordable housing. Developers of market-rate apartments can raise rents when they are running low on cash, writes Picciotto. Affordable housing developers tend to be limited in their rent increases in order to qualify for federal tax credits. “I’ve been doing this for 18 years. I’ve never seen this level of uncertainty or this level of complexity to get anything done,” one executive told Picciotto.