4 Ways Investors Can Help Alleviate the Affordable Housing Crisis

4 Ways Investors Can Help Alleviate the Affordable Housing Crisis


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4 Ways Investors Can Help Alleviate the Affordable Housing Crisis M. Ian Colville at BiggerPockets.com writes about the 4 Ways Investors Can Help Alleviate the Affordable Housing Crisis. “You know there is an affordable housing crisis underway. And indications are that it is going to get worse before it gets better. I recently ran across some stats that paint a pretty dismal picture. One study estimates we’ll need an additional 4.6 million new apartment units by 2030. This equates to 325,000 new apartments needed annually to keep up with demand. Unfortunately, the number of new apartments projected to come online is about 70% of what is needed. Add to that an already low supply of affordable units and minimal government incentives, and we’ve got an ever-widening affordability gap.”

However, as is often the case, where there are challenges, there are also opportunities. It would seem that there are a myriad of opportunities as a real estate investor. The flip side reveals opportunities to make an impact (that is, investments that will make you money and do good socially and environmentally).

4 Ways Investors Can Help Alleviate the Affordable Housing Crisis

  1. Crowdfunding – Crowdfunding expands the reach of individual investors and opens real estate investing to a much broader range of individuals. Some platforms have minimum investments as low as five dollars. With crowdfunding, the investor can often specifically invest in projects that will bring more affordable housing online. 
  2. Investing in Homeownership – Another take on crowdfunding, there are funds of distressed mortgages. These funds use investor money to purchase pools of distressed mortgages and then work with homeowners to find solutions that will keep them in their homes. See our post on “Buying and Selling Notes and Deeds.”

Another of the 4 Ways Investors Can Help Alleviate the Affordable Housing Crisis

  • Tax Reform and the Opportunity Zones Program – You’ve probably heard about Opportunity Zones, but here is a quick overview. Opportunity Zones are a new economic and community development program established by Congress in the Tax Cut and Jobs Act of 2017. The purpose is to encourage long-term economic development and housing investments in low-income communities nationwide.
The law provides for the creation of “Opportunity Zones,” which use tax incentives to attract long-term investment to neighborhoods that are continuing to grapple with high poverty and lackluster job and business growth. Housing experts and government officials believe investment in Opportunity Zones will help prompt development of affordable housing.
  • Affordable Housing via Fix and Flips and Long-Term Rentals – There are direct opportunities for real estate agents, investors, and builders to be more socially conscious and to have a positive impact on affordable housing through regular business dealings. With a little forethought and planning, a lot can be done to help reduce expenses when building and rehabbing homes. Homes can be made more energy efficient, safer, and designed to incur less tax. All of these can benefit potential homeowners and make housing more affordable to more people.

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We have extensive knowledge of the business, a network of resources, and years of expertise. P2 Properties can assist homeowners with a wide variety of real estate problems. We pride ourselves on our reputation for working one-on-one with each customer to handle their situations.

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