the gap. By creating mixed-income developments and affordable rental communities, developers are addressing the shortage of housing for lower- income households. These projects often rely on federal tax credits and grants, which incentivize developers to build housing that is within reach for a broader range of income levels. Local governments can also play a role by rezoning certain areas to allow for more multifamily housing or by implementing rent control policies to stabilize the rental market. In many urban areas, restrictive zoning laws have limited the construction of affordable housing, exacerbating the crisis. By relaxing these regulations, cities can encourage more development and help ease the pressure on both buyers and renters.
The high demand for rentals is driving new development, but much of this new housing is aimed at the luxury market. Lower-income and middle-income renters often have fewer options, as affordable rental options remain scarce. MORE AFFORDABLE REGIONS As housing markets in major metropolitan areas continue to escalate beyond reach, buyers are looking toward regions where the cost of living remains significantly lower. States like Ohio, Indiana, and parts of the Midwest have gained attention for their relatively affordable real estate markets. In these regions, the median home price often falls below the national average, providing relief for those priced out of larger, coastal cities like San Francisco, New York, and Los Angeles. Moreover, smaller cities and rural areas are seeing increased interest as remote work continues to expand. The COVID-19 pandemic showed millions of Americans that they could perform their jobs from virtually anywhere. This shift in work culture has opened up new possibilities, with many reconsidering the need to live near urban centers. As a result, areas that were once overlooked are now becoming viable options for first-time homebuyers and families looking for more space at a lower cost. Yet, the affordability of these regions does not come without trade-offs. Although homes may be cheaper, access to certain amenities (e.g., top- tier health care, diverse job markets, and cultural activities) tends to be limited in rural or less populated areas. Additionally, buyers moving to these regions may face longer commutes or less efficient public transportation. Nevertheless, for those struggling to afford homes in expensive urban
markets, the benefits of affordable housing often outweigh the drawbacks. As the housing affordability crisis continues to unfold, it’s clear that a multifaceted approach will be necessary to address the various challenges. Although some find relief in more affordable regions or in the rental market, others remain stuck in a difficult situation, unable to buy and facing rising rental costs. The American dream of homeownership is still alive, but it’s evolving. For many, owning a home may no longer be the central pillar of financial stability it once was. Instead, finding affordable, quality housing—whether through buying or renting—has become the new priority. As governments, developers, and individuals work to navigate this changing landscape, the hope is that housing can once again become accessible for all.
RENTAL OPTIONS When homeownership becomes
increasingly out of reach, the rental route becomes an attractive option. According to the Pew Research Center, more U.S. households are renting than at any point in the last 50 years. Many Americans simply can’t afford to buy and instead are turning to rentals as a more flexible, less burdensome option. The rental market comes with its own set of challenges, however. With more people competing for rental properties, rent prices in many areas have skyrocketed, further squeezing household budgets. According to Apartment List, the national median rent has climbed to over $1,300 per month for a two-bedroom apartment, an amount that continues to rise annually. In competitive markets like New York City and Los Angeles, rent for a comparable unit can be double or even triple that figure.
TAYLOR MILLER
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 the marketing campaigns, social media, and design responsibilities for CIS.
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