Attainable housing is the largest source of demand in the U.S. – but it’s also where the shortage is most severe. Michael Bennett, CFA, Head of Corporate Development at Roc360, breaks down how renovation and investor capital can help replenish America’s disappearing starter homes.
Video Transcript
The attainable housing segment, which sits in between government-sponsored affordable housing programs, and what we commonly refer to as market rate housing is the single largest source of demand from the end user of America’s housing stock.
Greater than 60% of all buyer demand for housing comes for the attainable segment of the market.
The product of it comes off of our so-called assembly line, the funds that we provide to real estate investors that acquire, renovate, and, and replenish America’s housing stock.
We see the most acute shortage happening in what is typically defined as workforce housing or the starter home.
Because of the requirements for new construction, because of the costs related to taxes, material, labor, and otherwise, there has been a disappearance of that starter home from the new build category.
And so the quickest way as we see it, to add new inventory of starter homes back to the market is through renovation and, and, and retrofitting preserve the existing housing stock that we have. Each year in the US it’s estimated that between half a percent and a full percent of the existing housing stock falls into some state of obsolescence, remedying that problem right to the natural industry of household renovations and investor property finance is a major solution to us for that availability problem.
The attainable housing segment, which sits in between government-sponsored affordable housing programs, and what we commonly refer to as market rate housing is the single largest source of demand from the end user of America’s housing stock.
Greater than 60% of all buyer demand for housing comes for the attainable segment of the market.
The product of it comes off of our so-called assembly line, the funds that we provide to real estate investors that acquire, renovate, and, and replenish America’s housing stock.
We see the most acute shortage happening in what is typically defined as workforce housing or the starter home.
Because of the requirements for new construction, because of the costs related to taxes, material, labor, and otherwise, there has been a disappearance of that starter home from the new build category.
And so the quickest way as we see it, to add new inventory of starter homes back to the market is through renovation and, and, and retrofitting preserve the existing housing stock that we have. Each year in the US it’s estimated that between half a percent and a full percent of the existing housing stock falls into some state of obsolescence, remedying that problem right to the natural industry of household renovations and investor property finance is a major solution to us for that availability problem.
