{"id":39483,"date":"2023-11-22T12:46:26","date_gmt":"2023-11-22T17:46:26","guid":{"rendered":"https:\/\/test.greenmoney.com\/2025\/?p=39483"},"modified":"2023-11-27T15:46:20","modified_gmt":"2023-11-27T20:46:20","slug":"the-investors-role-in-easing-the-affordable-housing-crisis","status":"publish","type":"post","link":"https:\/\/test.greenmoney.com\/2025\/the-investors-role-in-easing-the-affordable-housing-crisis\/","title":{"rendered":"The Investor’s Role in Easing the Affordable Housing Crisis"},"content":{"rendered":"
>> Back to December 2023 Issue<\/a><\/div>\n
\"Faina<\/a><\/span>Above photo by Breno Assis<\/a><\/h5>\n

America\u2019s housing affordability has severely deteriorated over the last two years. Mortgage rates reached <\/span>a 23-year high<\/span><\/a> this October, and the limited supply of homes for sale has kept a floor under home prices. Home sales <\/span>in September<\/span><\/a> dropped to their lowest levels since the foreclosure crisis.<\/span><\/p>\n

Roughly <\/span>85% of American homeowners<\/span><\/a> are locked into lower interest rates from past years, and many have experienced rising home equity values, with the median home price up <\/span>2.8% over last year<\/span><\/a>. This is a contributing factor to why the overall U.S. consumer is still fairly healthy, but also why the housing market is all but frozen.<\/span><\/p>\n

For first-time homebuyers, persistent inflation and <\/span>soaring home insurance rates<\/span><\/a> are creating additional barriers to homeownership. Lower income families in particular are left bearing the brunt of the adverse effects in this current economic environment. These families are often left to rent, unable to front the costly barrier to entry into the housing market. For those that have locked in a 3% mortgage rate, however, they reap the benefit of steadily growing equity that will increase over time.<\/span><\/p>\n

So, while some may say that only the <\/span>rich are getting richer<\/span><\/a>, investors seeking to advance human flourishing have a critical role to play in <\/span>improving housing affordability so that more people can experience the potential benefits of homeownership.<\/span><\/p>\n

First, investors can consider homebuilders and real estate investment trusts (REITs) whose core business is to address the affordable housing crisis.<\/strong> Some manufactured housing REITs are making homeownership more affordable for retirees and lower-income families. And the way that homes are built today can also help reduce their environmental footprint. Many <\/span>new construction homes<\/span><\/a> are more energy efficient with features like improved insulation and more innovative heating and cooling technology. Whether it\u2019s a smaller design or more energy-efficient construction, affordable housing coming out of this era has the potential to benefit both the buyer and the community at large.\u00a0<\/span><\/p>\n

Allocating investments towards companies that are <\/span>committed<\/span><\/a> to improving housing affordability could show that it takes many – companies, governments, nonprofits – working together to solve market-entry challenges for today\u2019s American families.\u00a0<\/span><\/p>\n

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