DESIGN
For Speedy Sales, Spark the Senses
INVESTMENT STRATEGY
Efficient, Affordable, and Profitable
OPERATIONS
Raise the Rent?
Priced Out Before Breaking Ground SOARING COSTS CRIPPLE AFFORDABLE HOUSING PROJECTS
DEC-JAN 2026 $ 5 .95 US :: $ 6 .95 CAN
DISPLAY UNTIL MARCH 10, 2026
2 | think realty magazine :: december - january 2026
PUBLISHER & CEO Scott Ward
DESIGNER Kat Hungerford
CONTRIBUTORS Evan Brody Aaron Chapman Jon Kropfl Gaylene Rogers Lonergan Taylor Miller Real Property Managment Jeff Roth Jim Tannehill Tommy Thornburgh Michele Van Der Veen Skyler Wilson
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4 | think realty magazine :: december - january 2026
Leading Thoughts
Save Affordable Housing, Save the World I n today’s real estate landscape, affordable housing stands out as both a social responsibility and a solid financial opportunity. As home prices continue to rise faster than incomes, the need for affordable homes—those priced so low- to moderate-income families can afford them without sacrificing other essentials—has grown dramatically. This sector is defined by high demand and very limited supply. The U.S. is currently short over seven million affordable rental units, and that gap only widens with urban growth and population shifts. But here’s the silver lining: For investors, this imbalance offers real stability. Unlike luxury properties that can be vulnerable during economic downturns, affordable housing tends to hold its ground, keeping occupancy rates strong even in tough times. What’s more, the opportunity isn’t just in major coastal cities like New York or San Francisco. While those markets require creative approaches— like tax credits or public-private partnerships—secondary and tertiary markets such as Detroit, Charlotte, Kansas City, and Indianapolis are seeing population booms and offer lower costs and attractive returns. Even rural and suburban areas are benefiting from remote work trends and state-backed revitalization incentives, which further sweeten the deal for investors. Financially speaking, affordable housing projects can deliver returns in the 6–10% range. That’s thanks to consistent demand, high tenant retention, and often government subsidies or tax incentives. It’s also gaining traction with investors focused on ESG (Environmental, Social, Governance) goals, as it clearly checks the “social impact” box. But beyond the numbers, investing in affordable housing means playing a part in strengthening communities—creating homes for people who need them, supporting local economies, and revitalizing neighborhoods. Over time, this can lead to long-term property value appreciation and even better returns.
SCOTT WARD THINK REALTY CEO
Affordable housing isn’t just a good deed—it’s smart business. It’s a rare case where purpose and profit truly align, offering investors a chance to make a meaningful impact while building wealth.
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Inside This Issue
FEATURE PAGE 26 Priced Out Before Breaking Ground SOARING COSTS CRIPPLE AFFORDABLE HOUSING PROJECTS
TAYLOR MILLER
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C O N T E N T S
OPERATIONS Raise the Rent?
DESIGN For Speedy Sales, Spark the Senses Follow principals of scensory marketing to engage buyers’ desicion-making behavior. Michele Van Der Veen PAGE 32 FUNDING You’re Betting Against the House When it comes to predicting the market, everyone and their mother is a card counter. Aaron Chapman PAGE 38 A Personal REI Journey Beyond building wealth, investors gain satisfaction from creating lasting valuable assets. Evan Brody PAGE 41
Know your rent and how to evaluate adjustments—before you purchase. Real Property Management PAGE 8 How Smart Structure Powers Affordable Housing Investments Entity, Tax, and Credit strategies can dramatically change your profitability. Tommy Thornburgh PAGE 10 ‘Under Contract’ But Not Really? Abuse of memorandums of contract create hurdles for property sales. Gaylene Rogers Lonergan PAGE 12 Perception Is Nine-Tenths of Reality One often-unaddressed challenge with affordable housing is how it’s branded. Skyler Wilson PAGE 15 The Affordable Housing Crisis is a Systems Issue The same way you scale a company is how you tackle housing challenges. Jim Tannehill PAGE 18 Michigan: An Affordable and Profitable Place to Invest You don’t need to be local to find your next great rei property. Jeff Roth PAGE 26 Efficient, Affordable, and Profitable For investors in affordable housing, look to energy efficiency to increase profits.
PAGE 8
PAGE 18
Jon Kropfl PAGE 28
PAGE 32
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Operations
SPONSORED CONTENT Raise the Rent? KNOW YOUR RENT AND HOW TO EVALUATE ADJUSTMENTS—BEFORE YOU PURCHASE.
REAL PROPERTY MANAGEMENT
A s a rental real estate investor, rental rates is essential to long-term profitability. In fact, the rental rate should be one of the key calculations you make before buying an investment property. It’s also important to re-evaluate your rental rate regularly to ensure it stays aligned with the local market. Without knowing how to evaluate the local rental market and set accurate this knowledge, you risk vacancies, unhappy tenants, and lost income. With so much at stake, it’s worth learning how to calculate accurate rental rates and handle rent increases like a pro. Delegating these responsibilities to a professional property management service, such as Real Property Management, can
2. CALCULATE RENTAL PRICE PER SQUARE FOOT. Divide the rental price by the property’s habitable square footage for each comparable. 3. FIND THE AVERAGE. Add the per- square-foot amounts together, then divide by the number of properties. 4. APPLY TO YOUR PROPERTY. Multiply your property’s square footage by this average to estimate your rental rate. Your evaluation isn’t complete until you adjust for amenities. These include both community amenities (parks, transit access, proximity to downtown) and property-specific amenities (technology upgrades, a pool, or included services such as landscape
reduce stress, ensure accurate pricing, and help you avoid lost rental income.
EVALUATING YOUR RENTAL RATES
One of the best ways to evaluate your rental rates is to complete a rental market analysis. This involves calculating the average rent price per square foot for similar rentals in your area. 1. FIND COMPARABLES. Locate three to five rental properties in your neighborhood that are similar in size, age, condition, and number of bedrooms and bathrooms. You can find these through online searches (such as Zillow) or local rental listings.
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In many cases, you can’t increase rent until the lease term ends. Always know and follow your state and local regulations regarding rent increases, as well as the terms of your lease. Trying to raise rent improperly — such as without notice, or to push out a tenant you don’t want — can result in costly consequences. If you want to keep a good tenant despite raising rent (and you should), handle the process with skill and professionalism: GIVE PLENTY OF NOTICE. Many states require at least 30 days’ written notice, but giving more time shows respect and helps tenants plan. COMMUNICATE CLEARLY. Explain why the increase is necessary and emphasize that the new rate remains competitive for the area. When tenants understand that rents and expenses are rising everywhere, they are more likely to accept the change. PROFESSIONAL HELP Evaluating and raising rents can be time-consuming and stressful for any investor. That’s why the professionals at your local Real Property Management office are ready to help. With expert insight into your local rental market, they can ensure your rental is priced right and remains profitable.
maintenance). Adjust your rental rate up or down depending on which apply.
are rising in markets across the country, and if yours aren’t adjusted regularly, you may lose income. Even worse, your expenses may rise faster than your rental income, leading to cash flow problems. By tracking your property’s performance, you’ll have good data to guide increases. Reasons to raise rent may include: ▷ THE AVERAGE RENTAL RATE PER SQUARE FOOT IN YOUR AREA HAS INCREASED (OFTEN BY 2% OR MORE). ▷ PROPERTY EXPENSES (TAXES, INSURANCE, FEES) HAVE GONE UP. WHEN TO RAISE RENT The best time to raise rent is typically when a tenant’s lease is up for renewal.
REGULAR EVALUATIONS = MAXIMUM RENTAL INCOME Knowing how to calculate a rental rate is just the beginning. To keep your property competitive and profitable, it’s important to evaluate your rates regularly. Most experts recommend at least once per year, though in hot markets you may need to re-evaluate more often. RENTAL RATE INCREASES Once you’ve determined a fair rental rate, the next challenge is deciding if, when, and how much to increase it. Rental rates
Contact us today to learn more.
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Operations
SPONSORED CONTENT How Smart Structure Powers Affordable Housing Investments ENTITY, TAX, AND CREDIT STRATEGIES CAN DRAMATICALLY CHANGE YOUR PROFITABILITY.
TOMMY THORNBURGH
T he conversation around affordable housing has changed. What used to be considered a niche or mission-driven corner of the real estate market is now attracting serious attention from investors of every size— and for good reason. With housing affordability at crisis levels across much of the country, demand for quality, attainable housing is higher than ever. For investors, that shift represents more than a moral opportunity—it’s a strategic one. Affordable and workforce housing are proving to be some of the most resilient asset classes in the market, delivering consistent occupancy, predictable cash flow, and community impact all at once. But success in this space doesn’t come from simply finding the right property in the right location. It comes from structuring
the business behind it the right way. That’s where thoughtful planning around entities, taxes, and credit strategy turns good intentions into durable profits. THE OPPORTUNITY Across the country, real estate investors are rethinking what it means to build wealth that lasts. A growing number are focusing on affordable housing—not only because it’s the right thing to do, but because it’s one of the most durable and recession-resistant investment segments. Affordable housing is always, and will always be, necessary. Still, these deals don’t always pencil easily. Rising construction costs, layered financing, and compliance requirements can make even experienced investors question whether the margins
are worth the effort. The truth is, the opportunity is there — it’s just hidden behind the right structure. When you align your entity setup, tax strategy, and credit positioning, affordable housing projects move from “barely viable” to “strategically scalable.” It’s not just about finding the deal; it’s about structuring it right from day one. That’s where thoughtful planning separates the successful from the stuck. ENTITY STRUCTURING In real estate, entity structure is often treated like paperwork — a box to check before closing. But for investors in affordable or workforce housing, it’s far more than that. Your entity structure determines your liability exposure, tax efficiency, and long-term scalability.
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▷ MONITOR AND IMPROVE YOUR PAYDEX SCORE, WHICH REFLECTS YOUR VENDOR AND CREDITOR PAYMENT HISTORY. ▷ USE CREDIT TO BUILD TRUST WITH LENDERS — BEFORE YOU NEED IT. This is how credit becomes a proactive growth tool, not a reactive crutch. It’s not about debt — it’s about positioning. Strong business credit gives you leverage: to move on deals, improve properties, and weather market shifts without losing momentum.
Establishing a clear entity strategy — often using multiple LLCs, series entities, or a holding-company model — allows you to isolate risk between properties, maintain transparency for lenders, and simplify accounting. It also signals professionalism to potential partners and funding sources. When structured correctly, your entities should do three things: 1. PROTECT EACH PROPERTY FROM CROSS- LIABILITY OR PERSONAL EXPOSURE. 2. OPTIMIZE TAX OUTCOMES BY ALIGNING HOW INCOME FLOWS THROUGH THE STRUCTURE. 3. PREPARE FOR SCALABILITY, MAKING EACH NEW ACQUISITION EASY TO INTEGRATE. At PRIME Corporate Services, we’ve seen investors lose six figures in taxes or lawsuits simply because they didn’t separate assets or chose the wrong structure for their goals. The fix isn’t complicate —it’s just intentional. The takeaway is simple: You can’t scale what you can’t protect. A thoughtful entity structure gives you both safety and momentum. TAX STRATEGY If structure is the foundation, tax strategy is the engine that drives performance. Affordable housing deals can operate on thinner spreads, but that doesn’t make them less profitable. It just means every tax dollar counts. One of the most powerful yet underused tools is cost segregation, which accelerates depreciation by reclassifying components like flooring, fixtures, and mechanical systems into shorter tax lives. This unlocks significant early-year deductions — cash that can be reinvested into future projects.
Bonus depreciation remains a major advantage when paired with cost segregation. Capturing it can dramatically enhance cash flow in the first year of ownership. For those looking to keep capital compounding, 1031 exchanges remain essential. Rolling gains from one property into another defers taxes and preserves momentum — a critical strategy for portfolio growth. And for active investors managing day- to-day operations, S-Corp elections can help reduce self-employment taxes while allowing flexibility in distributions. The key is coordination — making sure your entity type and tax strategy are designed to work together, not against each other. When your entities and tax plan are aligned, you’re not just minimizing liability; you’re creating financial efficiency that compounds over time. That’s what separates one-off deals from scalable wealth. CREDIT & LEVERAGE Even the best structure and tax plan fall short without the ability to fund and scale. Affordable housing often requires creative financing — and that starts with strong credit. Most investors don’t realize they can build a separate credit identity for each business entity. Doing so protects personal credit, increases access to capital, and strengthens relationships with lenders who look for disciplined borrowers. A few fundamentals make a big difference: ▷ BUILD BUSINESS CREDIT TIED TO YOUR ENTITY’S EIN. ▷ REGISTER WITH DUN & BRADSTREET TO ESTABLISH A BUSINESS CREDIT PROFILE.
Credit is the oxygen of portfolio growth. When managed well, it keeps your business breathing easy — through every cycle.
ACTION & ALIGNMENT Affordable housing sits at the intersection of purpose and performance. It’s one of the few investment spaces where you can create real community value while building durable financial success. But those outcomes don’t happen by accident — they happen by design.
TOMMY THORNBURGH
Tommy Thornburgh is the President of Prime Corporate Services, a national leader in business structuring, asset protection, and tax strategy for entrepreneurs and investors. He helps real estate investors turn financial complexity into clarity, building sustainable wealth through proactive planning. Learn more at https:// primepartner.info/ThinkRealtyArticle.
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Operations
‘Under Contract’ But Not Really? ABUSE OF MEMORANDUMS OF CONTRACT CREATE HURDLES FOR PROPERTY SALES.
GAYLENE ROGERS LONERGAN
Y ou’ve worked hard to build equity in your home or investment property. But imagine discovering that someone has filed a legal document claiming they have a contract to buy your property—even though you’ve never heard of them, or they once had a contract but failed to close. Now what? Property owners are facing a troubling new issue: the abuse of Memorandums of Contract. This practice is creating serious challenges for homeowners, title companies, and real estate professionals. MEMORANDUM SOF CONTRACT A Memorandum of Contract (also called a “Memo of Contract” or “Notice of Contract”) is a legal tool used in real estate transactions to provide public notice that a property is under contract, even when the full purchase agreement is not recorded in public records.
HOW IT SHOULD WORK The Memorandum serves as a public record that alerts third parties — such as other potential buyers, lenders, and title companies — that the property has a pending sale. This protects the buyer’s interest without disclosing private details of the transaction. A proper Memorandum typically includes: ▷ NAMES OF BUYER AND SELLER ▷ PROPERTY DESCRIPTION (ADDRESS AND LEGAL DESCRIPTION) ▷ CONTRACT DATE ▷ KEY TERMS (SOMETIMES
property is encumbered by a sales contract. It prevents the seller from selling to another party without the buyer’s knowledge. LEGITIMATE USES A Memorandum is usually recorded shortly after a purchase agreement is signed, particularly in transactions with longer closing periods or when the buyer wants immediate protection. Unlike recording the full purchase agreement, which includes private financial and personal information, the Memorandum contains only essential details for public notice. It is normally removed from public records after closing when the deed transfers, or if the contract is terminated, through a release or cancellation document. THE PROBLEM What began as a legitimate protection mechanism has now become a serious problem. Across the U.S., some investors
INCLUDING PURCHASE PRICE) ▷ SIGNATURES OF BOTH PARTIES
THE LEGAL IMPACT Once recorded with the county clerk or recorder’s office, the Memorandum creates “constructive notice.” This means anyone searching public records will see that the
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and wholesalers misuse Memorandums of Contract, creating clouds on property titles and disrupting real estate transactions. In legitimate cases, the Memorandum protects buyers from sellers who try to back out of deals or accept higher offers. But problems arise when deals fall through. Some investors, unable to close or find buyers, file a Memorandum anyway. They get it notarized and recorded in property records, even though the contract is no longer valid. This creates a cloud on the title that prevents the homeowner from selling. Once filed, a Memorandum can stop a homeowner from selling their property because title companies will not insure the transaction. Unscrupulous investors
These records are vital in challenging an improper filing.
challenge it within 45 days, the Memorandum loses legal effect. 4. CONSEQUENCES FOR NON-
NATIONAL IMPACT This issue has broad consequences: ▷ TITLE INSURANCE COMPANIES CANNOT ISSUE CLEAR POLICIES. ▷ REAL ESTATE AGENTS SEE DEALS DELAYED OR CANCELED. ▷ LEGITIMATE BUYERS FACE COMPLICATIONS AT CLOSING. ▷ HOMEOWNERS ARE TRAPPED BY CLOUDS ON THEIR TITLE. ▷ ETHICAL INVESTORS AND WHOLESALERS FACE REPUTATIONAL HARM. If not addressed, sales may be dismissed or delayed, costing property owners time, money, and opportunity. ONE STATE IS FIGHTING BACK Texas recently took action against Memorandum abuse. In 2025, the legislature passed House Bill 4063, which takes effect September 1, 2025. The Texas Land Title Association supported the bill after documenting widespread misuse. Key protections in the new law include: 1. TIME LIMITS ON OLD CLAIMS. Memorandums expire after four years from the contract date, preventing stale claims. 2. MANDATORY NOTICE REQUIREMENTS. Before filing, the party must provide proper notice to the homeowner by certified mail, including a copy of the Memorandum and an explanatory letter. Notices must be sent to all known addresses for the owner. 3. FIGHTING BACK PROCEDURES. Homeowners can file an affidavit for release. If the filer does not
COMPLIANCE. Memorandums that do not meet these requirements will not create constructive notice, affect title, or bind buyers and lenders. THE BOTTOM LINE Texas has shown one way to address the abuse of Memorandums of Contract. Given the nationwide scope of the problem, other states may need to adopt similar measures. The goal is clear: preserve the legitimate use of Memorandums while protecting property owners from abuse, ensuring fairness for buyers and investors, and maintaining transparency
use this as leverage, demanding thousands of dollars in exchange for releasing the Memorandum. This is essentially a form of legal
in real estate transactions. If you are facing issues with a Memorandum of Contract, professional legal assistance can help you navigate the process.
extortion. Homeowners, desperate to clear their titles, often pay significant sums to make the issue “go away,” even when the original contracts were invalid or had already been terminated. The fallout doesn’t stop with homeowners. Title companies cannot provide clear title insurance if a Memorandum is on record. This delays or blocks legitimate sales and complicates the entire real estate process. HOW TO PROTECT YOURSELF Take action immediately and seek legal help, keeping thorough documentation of your real estate transactions, including: ▷ SIGNED CONTRACTS AND DOCUMENTS ▷ RECORDS OF DISPUTES OR ISSUES ▷ COMMUNICATION LOGS ▷ DOCUMENTATION OF CONTRACT TERMINATIONS
GAYLENE ROGERS LONERGAN
Gaylene Rogers Lonergan founded The Lonergan Law Firm, P.L.L.C., a real estate and banking law practice and real estate closing office, headquartered in Dallas, Texas in 2000. Lonergan has more than 40 years’ experience with commercial and residential real estate law, banking, and title transactions.
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Operations
Perception Is Nine-Tenths of Reality ONE OFTEN-UNADDRESSED CHALLENGE WITH AFFORDABLE HOUSING IS HOW IT’S BRANDED.
SKYLER WILSON
T he meaning behind the oft- repeated aphorism “perception is nine-tenths of reality” is that whatever someone believes becomes their truth. For example, people will pay double for a cup of coffee if it comes in the right cup with the right logo, even if it’s still just Folgers inside. They believe it tastes better, and therefore it does. Real estate works much the same way. Presentation changes perceived value. Perception drives capital. If something looks investable, people believe it is. If it doesn’t, they’ll scroll right past it, no matter how solid the numbers are. And here’s the ironic part: Some of the flashiest real estate classes, like large multifamily or commercial developments, can see the biggest swings in performance.
PACKAGING OVER PERFORMANCE
The No. 1 most stable asset class in America has been, and always will be, the single-family home. Everyone needs a roof over their head—it’s the last thing anyone will let go of. The electric bill, the car, the furniture, the subscriptions— all of it goes before the house. Companies that focus almost entirely on single-family homes, many of them investing in C-class neighborhoods, are some of the only real estate funds that keep paying consistent monthly distributions during hard times. So why doesn’t the average investor see affordable housing as the stable wealth builder that it actually is? Because of branding. “Scale” and “luxury” have been glamorized while neglecting the simple truth that stability often lives in the most modest places.
People are far more influenced by marketing than they think. Again, perception is nine-tenths of reality. When an investor sees modest but steady returns on an asset that doesn’t make their portfolio look like a Fortune 500 brochure, a blind spot appears. The biases kick in. They might not even realize it, but the packaging changes everything. Picture two deals sitting on your desk. The first is a Google Doc titled “Low- Income Rental Phase II.” It’s nothing but spreadsheets and a few uninspiring photos—a house with toys scattered in the yard and dishes in the sink. The
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render, every drone shot whispers exclusivity and prestige. It’s designed to make you want in before you even open the pro forma. Affordable housing, on the other hand, has been saddled with a name that feels bureaucratic and joyless. We talk about it like an obligation. The term “affordable” alone creates distance— as if it’s something separate from the rest of the market, rather than the foundation that keeps communities stable. The reality is that these developments aren’t charity projects. They’re cash- flowing, asset-backed investments that meet one of the most consistent demands in the economy: housing for working families. They perform in good times and bad, and unlike
second is a 200-unit affordable housing development, branded with a clean logo, cinematic photography, and language built around stability and pride in the backbone of working America.
speculative luxury builds, they serve a customer base that never disappears. The only thing missing is the confidence to present them that way.
BRANDING CAN CLOSE THE GAP
Which one gets funded first? You already know.
That’s where branding steps in. A strong visual identity, consistent messaging, and a sense of pride in the product can completely reshape how investors and the public perceive affordable housing. The branding should match the reality on the ground: dependable, accessible, and built to last. The same design principles that sell a high-rise condo apply here: color, tone, and story. A logo that evokes trust.
And that’s the heart of it: Affordable housing isn’t lacking investors because of its numbers; it’s losing them because of its framing. Somewhere along the line, the story stopped being told. LUXURY REAL ESTATE HAS A BRANDING ADVANTAGE Luxury real estate has mastered storytelling. Every brochure, every
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SKYLER WILSON
Photography that focuses on families. Messaging that highlights resilience. When investors see affordable housing portrayed with the same level of care as a luxury development, the mental gap begins to close. They stop seeing risk and start seeing reliability. Because at the end of the day, people don’t only invest in spreadsheets. People need a narrative, a purpose, a why. They invest in how something makes them feel about their decision, their reputation, their impact. And right now, affordable housing isn’t making anyone feel much of anything. That’s a fixable problem, but it requires intentionality.
We’re living in an era where the media drives markets. Stocks surge because of narratives. Dogecoin’s price can plummet because Elon Musk spoke on “SNL.” Real estate is no different. The more we tell the story of affordable housing with pride, professionalism and humanity, the more capital will follow. Affordable housing just needs to be rebranded—and you, dear investor, can be that change. You know it’s important, because perception, as we’ve already established, is nine-tenths of reality. And it’s about time the reality of affordable housing caught up with what it’s always been: the most stable, necessary and investable asset class in America.
Skyler Wilson founded video production and marketing company Shift Z in 2022 and Retro Current Marketing in 2023, targeting music artists and real estate pros. He offers a fresh perspective, blending creativity, leadership, and processes with a deep expertise and life-long passion for video editing and live production.
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Operations
The Affordable Housing Crisis is a Systems Issue THE SAME WAY YOU SCALE A COMPANY IS HOW YOU TACKLE HOUSING CHALLENGES.
JIM TANNEHILL
W hen you look at the conversation around affordable housing, it’s easy to get caught up in the noise. Rising costs, limited supply, and government hurdles make it seem like the problem is too big to solve. But when you run businesses, you know better. You’ve seen what happens when people throw up their hands at complexity. Nothing changes.
LEADERSHIP Affordable housing needs leaders who are willing to think beyond short-term profits. You’ve got to set a vision that balances impact and growth. When you lead with clarity, you attract the right partners and team members who believe in that mission. This isn’t about running a charity. It’s about being intentional. When you
The truth is, affordable housing isn’t just a policy issue. It’s a systems issue. And when a system doesn’t work, you fix it. The same way you scale a company is the same way you tackle housing challenges. You need vision, structure, financial discipline, clear communication, and the right people. Put those pieces in place, and you can transform the conversation from frustration to opportunity.
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FINANCE The biggest misconception is that you can’t make money with affordable housing. That’s not true. Profitability and affordability aren’t opposites. Profit is what allows the mission to continue. When you track cash flow, manage costs, and structure deals the right way, you find balance. Tax credits, community financing, and voucher programs aren’t obstacles, they’re tools. If you learn how to use them, you can build properties that serve both investors and tenants. Affordable housing is sustainable when the numbers work. And it’s your responsibility to make sure they do. PEOPLE None of this happens without the right people. Property managers, contractors, leasing agents, maintenance crews, and city partners all play a role. Too often this is where things fall apart. Teams burn out, communication slips, and service declines. When you hire with purpose, train consistently, and set clear expectations, you create alignment. And when your team understands they’re not just running units but helping families find stability, the work becomes meaningful. That purpose builds culture. And culture builds retention, not just for employees, but for tenants too. WHY THIS MATTERS You don’t need to be a nonprofit director or a government offcial to make a difference in affordable housing. If you own a few properties, you can choose to manage them differently. If you’re growing a
communicate that affordable housing is part of your strategy, people take notice. Investors see stability, tenants see reliability, and communities see hope. OPERATIONS If you’ve ever managed properties, you know how quickly the details pile up. Maintenance, compliance, tenant turnover, it’s enough to overwhelm anyone without the right structure. But these aren’t impossible problems. They’re operational problems, and operational problems can be solved. When you build processes for tenant intake, maintenance schedules, vendor relationships, and communication, you create predictability. Properties stay in better shape, tenants stick around longer, and your portfolio grows without the chaos. Most affordable housing efforts fail not because the demand isn’t there, but because the systems to deliver it consistently aren’t in place. MARKETING AND SALES Affordable housing has a branding problem. Too often it’s framed as something for the desperate or as a government handout. That story
portfolio, you can build affordability into your plan from the start. Affordable housing is not going away. The demand is constant, and the leaders who create systems around it will not only profit but also leave an impact that lasts beyond their own business. FINAL THOUGHT At the end of the day, affordable housing is about more than units and rents. It’s about families, stability, and opportunity. You can ignore it, or you can step up and build the systems that make it possible. When you choose the second option, you do more than grow a business. You grow communities. And that’s the kind of growth that endures.
JIM TANNEHILL
turns people away before they even look at the opportunity.
Jim Tannehill has been an entrepreneur for more than 10 years. He is Empire Certified, Trainual Certified and an expert in LucidCharts. A business coach, Tannehill has consulted with more than 100 companies in many different industries and verticals. As chief operating officer of Empire Operating Systems, Tannehill oversees the complete operating picture for the company and ensures that all Empire clients are moving forward in the Five Phases of Business.
You can change that. You can market affordable housing as what it really is stable, long-term, and foundational for families. You can present it as a smart investment that generates reliable returns and strengthens communities. And when you speak to tenants with dignity, showing them that affordable doesn’t mean second- class, you attract the kind of people who value and protect where they live.
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Real ROI
The real difference in using Real Property Management—optimizing your ROI.
Using the right professional property management firm can help you earn more, not less. As the largest single-family residence management franchise in North America REAL Property Management has more than 30 years of experience doing just that for clients. There are many ways REAL Property Management can help maximize your investment and even help you with ways to monitor financial goals for your real estate. That’s the Real Difference.
Visit www.realpropertymgt.com to learn how Real Property Management can put our experience to work for you, giving you real commitment, real ROI and real peace of mind.
Each office is independently owned and operated. © 2020 Property Management Business Solutions, LLC.
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Real Property Management is the trusted leader in reliable, cost-effective management of residential properties. With local expertise, highly-trained and responsive teams, independently owned and operated Real Property Management franchisees collectively manage tens of thousands of properties for individuals, investors, and institutions throughout North America.
We Offer:
Comprehensive Marketing and Advertising For each day a property is vacant, that’s
Online Reporting Owners maintain control of their property and keep tabs from afar using their own online account, with easy access to updates on property activity, including vacancies, leasing, maintenance, property evaluations and financial reports. Cost-Effective, Reliable Maintenance Relationships with preferred vendors result in discounted equipment and services. Maintenance staff is available 24/7 to handle emergencies and to make sure maintenance is timely, cost-effective and done in a professional manner. Timely Rent Collection Nothing affects cash flow more than late or missing rent payments. In addition to offering incentives for paying rent on time, our collection processes are professional but tough, and we are extremely diligent in collecting rent through a systematic, timely process. Strict and Compliant Evictions Even with careful placement there is occasionally a tenant who needs to be evicted. Our offices are knowledgeable in state and local landlord and tenant laws. If rents are not paid on time, we strive to minimize costs by following the legal steps quickly and efficiently to get the property leased again.
money lost. Professional management costs are easily offset by shorter vacancy. Our advanced planning and heavy advertising gets vacancies filled fast.
Thorough Tenant Screening and Selection
Placing the wrong tenant can quickly cost you more than professional management fees. We make every effort to find tenants who will pay rent on time and take care of the property with the use of criminal, credit, and employment checks. Full-Service Leasing In addition to advertising properties and screening tenants, our full-service leasing process also includes rent-ready guidance, market rent analysis, professional showings, move-in property assessments, and professional tenant education at lease signing. Routine Property Evaluations Regular assessments of both the inside and outside of your rental property ensure tenant compliance with the lease and identifies maintenance needs to preserve your property.
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Market & Trends
Priced Out Before Breaking Ground SOARING COSTS CRIPPLE AFFORDABLE HOUSING PROJECTS.
TAYLOR MILLER
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T he cost to build has risen sharply across the board, but nowhere is the impact felt more acutely than in the affordable housing sector. Developers, nonprofit organizations, and policymakers have long struggled to meet the demand for housing that working families can afford. In today’s economic environment, the challenge is even steeper. Every component of the building process—materials, labor, land, and regulatory compliance—has grown more expensive, pushing affordable housing projects to the edge of financial feasibility. Over the past several years, the cost of construction has climbed steadily, with inflationary pressures and supply chain disruptions compounding the problem. Engineering News-Record reports that in 2024 alone, steel prices rose by 11.2 percent across major U.S. cities, while the broader materials cost index increased about 3 percent year over year. MATERIALS Lumber, emblematic of pandemic-era shortages, remains more expensive today than it was before 2020, even after its historic spikes cooled. Other building materials, such as copper and steel-mill products, have seen double-digit price increases, rising by more than 13 percent in 2025. Each percentage point of increase may appear modest on paper, but magnified across thousands of units, the result is millions of dollars in added expenses. SKILLED LABOR The labor market has only added to the difficulty. Construction firms nationwide are struggling to find skilled labor as older tradespeople retire, and interest in
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construction among younger generations continues to wane. To retain electricians, carpenters, and plumbers, contractors must offer higher wages and expanded benefits, which drive labor costs up in tandem with materials. The National Association of Home Builders estimates that tariffs on steel, aluminum, and other inputs are adding more than $9,000 to the price of building a single-family home. These factors combine to create a financial environment where affordable housing is increasingly difficult to deliver. Just a few years ago, construction costs accounted for around 61 percent of the sales price of an average single-family home. By 2024, that share had risen to more than 64 percent. For affordable
housing developers, where every dollar counts, this narrowing margin can mean the difference between moving forward with a project or canceling it altogether. Even with tax credits, subsidies, or low-interest loans, the math often no longer works. Projects that once could close their financing gaps with modest public support now require far more than what government agencies or nonprofit partners are able to provide. RED TAPE The squeeze is felt not only in materials and labor but also in land and regulatory costs. In many urban centers, land acquisition is itself prohibitively expensive, consuming a large portion of the budget before
construction even begins. Layered on top are zoning requirements, environmental reviews, and building code compliance, each of which adds both time and expense. Lengthy permitting processes create delays that drive up interest and financing costs, embedding more expenses into already fragile projections. Even small changes in building standards or compliance can translate into thousands of dollars per unit. THE GAP WIDENS For those who rely on affordable housing, the stakes are high. Housing is generally considered affordable when it costs no more than 30 percent of household income. As construction costs rise, the gap grows wider between what families
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construction costs can be controlled or subsidies expanded to match them, the supply of new affordable housing will continue to trail behind the need. This leaves communities at a crossroads: either accept a future in which housing for working families becomes increasingly scarce, or confront the financial realities head-on with bold policy adjustments and structural changes. Housing is more than just a roof and four walls—it is the foundation for stability, opportunity, and health. As construction costs rise, that foundation is slipping out of reach for millions of Americans. The challenge is daunting, but recognizing the scale of the problem is the first step toward ensuring that affordability remains part of the nation’s housing future.
and economic mobility diminishes. Employers in essential sectors such as healthcare, education, and hospitality find it harder to recruit and retain workers who cannot afford to live near their jobs. Homelessness, already a pressing crisis in many large cities, becomes even more difficult to address when the flow of new affordable units is constricted. Communities also feel the strain at the fiscal level. Families spending more than they can afford on housing have less disposable income to support local businesses, stifling economic activity. At the same time, demand for social services such as rental assistance, emergency housing, and food support increases, stretching the budgets of local governments and nonprofit organizations. The lack of affordable housing thus becomes not just a social issue, but an economic one with ripple effects across entire regions.
TAYLOR MILLER
A SIGNAL FOR SYSTEMIC FAULT LINES
can afford and what it costs per unit to build. Developers, facing these pressures, are often forced to target higher-income tenants to recoup costs, leaving low-income families with very few options. Waiting lists for subsidized units stretch longer each year, while older affordable units are demolished or converted to market-rate housing, further reducing available stock. FOLLOW-ON CHALLENGES The consequences extend far beyond individual families. When affordable housing is scarce, households are pushed farther from job centers, schools, and healthcare services. Commuting times lengthen, transportation costs increase,
The rising cost of construction represents a structural challenge, not a temporary spike. Even as some material prices stabilize, baseline costs remain far above where they were five or ten years ago. Labor shortages are likely to persist as demographic trends reshape the workforce. Tariffs, regulations, and land values continue to add layers of expense. For developers and policymakers committed to addressing the affordable housing crisis, these rising costs mean the bar is higher than ever. Affordable housing has always been difficult to build, but today the economics
Taylor Miller is a project specialist and marketing coordinator for Construction Inspection Specialists, where he provides commercial and private lenders with expert opinion on the level of completion for construction projects across the nation. He has been actively involved in the construction and inspection industries since 2016, focusing on commercial appraisals and cost analysis services.
Miller also manages marketing campaigns, social media, and design responsibilities for CIS.
are stacked against it more than at any point in recent history. Unless
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Market & Trends
SPONSORED CONTENT Michigan: An Affordable and Profitable Place to Invest YOU DON’T NEED TO BE LOCAL TO FIND YOUR NEXT GREAT REI PROPERTY.
JEFF ROTH
A ccording to Fortune magazine’s article, “Gen Z Flocking to These Midwest Housing Markets Where Homes are About 30% Cheaper Than the Coasts,” the Midwest is becoming increasingly attractive. The article notes that seven of the ten most affordable cities are in the Midwest. It specifically highlighted Grand Rapids, MI, as a market drawing young people with job opportunities, affordable living costs, and housing. If people of all ages are seeking affordable housing, and we know Michigan offers affordability, quality of life, and a moderate climate, then investors should consider capitalizing on this
the Way,” reported that Michigan added more than 67,000 people between 2020 and 2024, according to the census. Detroit grew for two consecutive years after decades of decline, Flint saw growth for the first time in 25 years, and Grand Rapids ranked near the top nationally for job growth and talent attraction. With these positive demographic trends, it may be time to give Michigan another look for your next investment. MARKETS TO CONSIDER There are many strong markets in Michigan, but these four consistently
trend — especially with young people driving future housing demand. Michigan is Attracting More Young People Because of Its Affordability Not only is housing affordable in Michigan, but the overall cost of living is low, allowing residents — especially those just starting out — to enjoy a high quality of life and save money. Because Michigan has an industrial history and a diversified economy, there is strong demand for workers across many fields. This demand creates well-paying jobs, which in turn fuels housing demand. A recent Click On Detroit article, “After Decades of Decline, Michigan is Growing Again, and Young People are Leading
rank high for affordability, job opportunities, and quality of life:
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GRAND RAPIDSI. The fastest-growing area in Michigan, it offers affordable living, a robust job market in tech and healthcare, a vibrant arts scene, and abundant outdoor activities near Lake Michigan. ANN ARBOR. Home to the University of Michigan, Ann Arbor frequently makes “best of” lists for U.S. cities. It provides world-class education and healthcare, thriving arts and culture, a walkable downtown, and diverse outdoor recreation. LANSING/EAST LANSING. Recognized as an excellent place to live, work, and study, East Lansing is home to Michigan State University, while Lansing serves as the state capital. The region has strong economic activity driving job creation and housing demand. DETROIT. Detroit has earned national attention for redevelopment, property appreciation, and population growth. It remains one of Michigan’s most affordable markets, with a thriving arts and music scene, diverse dining and nightlife, professional sports, and innovative community development.
“Housing is absolutely essential to human flourishing. Without stable shelter, it all falls apart.” —Mathew Desmond
FOUR STANDOUT MARKETS — WITH MANY MORE WORTH EXPLORING. Whether you’re interested in new
providing affordable, high-quality maintenance and rehab services. As an investor-friendly Realtor, we can source both on- and off-market opportunities across asset classes — residential, multifamily, and commercial. We also connect you with trusted professionals to ensure properties are inspected thoroughly, insured properly, managed effectively, protected legally, and financed smoothly. THE BOTTOM LINE ▷ MICHIGAN IS ABOUT 30% CHEAPER THAN THE COASTS. ▷ YOUNG PEOPLE ARE DRIVING HOUSING DEMAND DUE TO AFFORDABILITY. ▷ MICHIGAN ADDED 67,000 RESIDENTS BETWEEN 2020 AND 2024, WITH YOUNG PEOPLE LEADING GROWTH. ▷ AFFORDABLE LIVING, STRONG JOB OPPORTUNITIES, AND A MODERATE CLIMATE CONTINUE TO ATTRACT RESIDENTS OF ALL AGES. ▷ GRAND RAPIDS, ANN ARBOR, LANSING/ EAST LANSING, AND DETROIT ARE
construction, existing rentals, or commercial opportunities, Michigan offers investors both affordability and profitability.
To Your Success!
JEFF ROTH
HOW TO INVEST WELL FROM OUT-OF-STATE
From single-family to multifamily, from new construction to existing rentals, success in Michigan starts with having a strong local team. One of the most essential — yet often underrated — team members is the property manager. We work with vetted property managers throughout the state who are experienced and focused on creating value for investors, properties, and tenants. Many also have preferred contractor relationships,
Jeff Roth is the founder of Arbor Advising in Ann Arbor, Michigan. Arbor Advising is a real estate consultancy passionate about helping clients invest, buy, and sell in Michigan. You can contact Jeff at jeff@arboradvising. com, or www.arboradvising.com, or subscribe to the weekly newsletter at www.arboradvising.com/subscribe.
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