Americans are making more money. How is this affecting the affordable housing market?
With rising wages and shrinking unemployment, the time has come for the U.S. Department of Housing and Urban Development (HUD) to adjust its national area median income (AMI) calculations. In the Pacific Northwest, affordable housing market participants are excited to implement meaningful rent increases for the first time in years. Hunt Mortgage Group Affordable Housing Director Kevin Deegan discussed with Bisnow, using Portland, Oregon, as a case study, how increasing rent can pose a dilemma for affordable housing market participants, who are faced with the difficult choice to raise rents and risk vacancies, or not increase rental income with the possibility of straining property cash flow and reducing the quality of the housing.