Affordable Housing Shortage Worsened by Loss of Existing Stock
Recent reports highlight the importance of working to preserve housing, as losses in rural and other subsidized housing mount.
Rural Housing Losses to Mount Rapidly in Coming Years
The Housing Assistance Council (HAC), a national association of rural housing providers, reports that "[o]ver the next 12 years (through 2027) an average of 74 properties (1,788 units) per year will leave the program as their mortgages end."
HAC has recently published an update on USDA maturing mortgages which shows that at the end of March 2016 there were about 13,830 Section 515 properties with over 416,000 rental units. In 2028, the number of properties exiting the program will increase significantly with an average loss of 556 properties (16,364 units) per year through 2032. Beginning in 2033, the numbers increase again, peaking in 2040.
“Maturing USDA Rural Rental Housing Loans: An Update” and an interactive map of properties, including estimated exit dates for each property, are online.
Urban Institute Releases Report on Affordable Housing Preservation
A new report by the Urban Institute reveals that between 2001 and 2013, the U.S. housing market lost 2.4 million subsidized and market-rate rentals that were affordable to households earning less than 50 percent of the area medium income. The report suggests that initial funds for construction are often insufficient to ensure stable and secure affordable housing developments. Read more about the Urban Institute’s report and recommendations.