Freddie Mac Report Details Loss of Affordable Rental Inventory – NMP
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Freddie Mac Report Details Loss of Affordable Rental Inventory

Oct 25, 2017
When it comes to high-income households, a greater percentage of this money-burdened demographic can be found as renters rather than homeowners

The availability of affordable rental units declined dramatically during the past six years, according to a new report from Freddie Mac Multifamily.
 
The report found that between 2010 and 2016, there has been a 60 percent reduction in the number of units deemed affordable to very low-income households. Freddie Mac’s research determined that increasing rents and stagnant household incomes is causing the problem, which could become more acute if the supply of affordable units is not expanded. Freddie Mac previously reported that a growing demand and rising costs of land and construction exacerbated the supply gap, with a nationwide annual shortfall of approximately 400,000 housing units.
 
"Our analysis looked at the affordability of the same rental units at two close but different points in time. In a matter of just a few years, we found that a large number of units previously affordable to very-low income families could no longer be considered affordable," said Steve Guggenmos, Vice President of Freddie Mac Multifamily Research and Modeling. "This is a trend that is worsening, and Freddie Mac is working to better understand and develop offerings that meet the needs of this market."
 
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Phil Hall
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Oct 25, 2017
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