4D —September 2023 — Fall Preview — M id A tlantic Real Estate Journal
www.marej.com
A ttorney
By Neil A. Stein, Esq., Kaplin | Stewart Breaking The 65 Percent Barrier – The Impossible Dream
T
velopment of multi-family housing, government has failed to invest in affordable housing initiatives. The lack of commitment perpetuates the shortage, leaving vulner- able populations at risk of homelessness. This shortage leads to increased housing instability by forcing families to move frequently, thereby exacerbating gentrification. The Challenges A myriad of challenges to af- fordability exists today. • Land prices have skyrock - eted in recent years, making it increasingly difficult to acquire land for affordable housing.
he homeownership rate – currently around 65 percent,
stability, as the homeowning family no longer is subject to landlord forced relocation or unreasonable rent increases. Unfortunately, not much has changed in fifty years. The homeownership rate is unimproved, and the promise of an affordable housing stock remains unfulfilled. What are the barriers to improving the homeownership rate, and what policies could help overcome those barriers? The Problem As more people flock to cities in search of better opportuni- ties, the demand for housing in urban areas has surged. This
has led to skyrocketing prop- erty prices and rental rates, making it difficult for low- and middle-income individuals to secure affordable housing. Income inequality also plays a role. The gap between rich and poor is widening, mak- ing it increasingly difficult for those with limited financial resources to afford a home. Stagnant wages and rising liv- ing costs, with rising interest rates, have created a situation where even people with steady jobs struggle to make ends meet, let alone save enough for a down payment. Despite a boom in the de-
• Material and labor costs have been steadily rising. More stringent building code regulations and permit fees also contribute to higher construction costs. • Zoning regulations in many areas restrict the types of housing that can be built. This can limit the availability of affordable housing options in desirable neighborhoods. • The “Not In My Backyard” (NIMBY) movement is alive and well. Attitudes and opposi- tion from local residents, usu- ally based upon myth and ru- mor, can stall, or even prevent affordable housing projects. • Adequate government funding for subsidizing af- fordable housing initiatives, remains elusive. The Solutions Addressing the shortage of affordable housing requires a multi-faceted approach that involves governments, com- munities, and the private sec- tor. Some potential solutions include: • Governments should allocate more funding to af- fordable housing initiatives, including the construction of new affordable housing units and subsidies for low- income renters. • While not popular with the development or landlord community, even modest rent control measures and strong tenant protections can help stabilize rental markets. • Governments must pro - vide greater incentives and tax breaks to affordable hous- ing developers, encouraging private sector involvement in addressing the crisis. • Local government must get more creative in establishing zoning districts that allow flex - ibility in housing type. Conclusion The shortage of affordable housing is a complex issue with wide-ranging consequences. Governments, communities, and the private sector must collaborate to develop com- prehensive solutions to ensure that affordable housing is accessible to all. Without a concerted effort, the dream of affordable housing for all will remain an impossible dream for many years to come. Neil Andrew Stein, Esq. is a principal of Kaplin, Stew- art, Meloff, Reiter & Stein and a member of the Land Use, Zoning & Development Department. MAREJ
is a level first reached fifty years ago. This s t anda r d is broadly viewed as a measure of the qual- ity of life for
Neil A. Stein
the typical American family. Homeownership is the primary mechanism for the typical fam- ily to build wealth for retire- ment and to help the next gen- eration. Second, it brings social
Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.
Contact: NEIL A. STEIN • nstein@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart Attorneys at Law
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