Housing affordability. That's what the Bisnow panel in Seattle yesterday was about. If I may sum it up for you:
Also serving on the panel with me:
Over 300 in attendance! 🤯
Barriers to housing production:
❌ Financing and interest
❌ Labor availability and cost
❌ Material cost
❌ Operational costs
And perhaps most significantly discussed:
❌ ❌ ❌ Regulatory obstacles!
I.e., zoning, permitting, regulatory admin and conditions.
Regulatory obstacles affect everything front and back in development.
🔘 Significant gaps remain between available private funding for housing production and the margins necessary to make housing projects viable.
🚫 But this largess is not a sustainable model for housing development in other market geographies.
📉 Continued decreased housing production, which appears inevitable for the foreseeable future, means increased cost of housing for the foreseeable future.
In other words: housing will become LESS affordable. 🤑🤑🤑
Barring large changes. Like market operations (see 2008).
Lots of calls for public-private partnerships to address this gap in production/financing/regulations. 🎺🎺🎺
But few concrete proposals. 🏗
Increased clarity around zoning benefits public and private side interests and increases the confidence and certainty necessary for housing development.
Love being a part of these discussions. 😍
Thanks to everyone involved 🙏