Positive job growth and a stable economy are helping more Millennials enter the rental market. Meanwhile, many Gen Xers are renting longer, and a significant fraction of the nation's 67 million aging Baby Boomers is downsizing into more easily managed rental units.
Our nation's supply of housing, particularly affordable rental housing, is not keeping up. Per some estimates, there are only 7.3 million affordable rental units to serve 11.2 million households living on very low incomes.
A recent study from the Joint Center for Housing Studies found that more than a quarter — 27 percent— of all renters are severely "rent burdened"–spending more than half of their income on rent. In the 1960s, this number was around 12 percent.
Solving the affordable housing crisis requires a multi–front effort, says Freddie Mac Multifamily executive vice president David Brickman. "There isn't a silver bullet that's politically feasible," Brickman recently told Multifamily Executive. "The solution has got to be a lot of little things added together."
The solution has got to be a lot of little things added together.
As part of this effort, Freddie Mac and Multifamily Executive launched Tackling the Affordability Crisis this month. This special, 12–part series is dedicated to examining all corners of the affordability crisis and shining a light on some of the innovative solutions our industry is developing to meet it. In addition, Freddie Mac posted a fresh look at some of the factors driving rents higher authored by Steve Guggenmos, vice president of research and modeling at Freddie Mac Multifamily.
Freddie Mac's mission is to provide liquidity, stability and affordability to America's housing market. Last year alone, our Multifamily business financed more than 400,000 low–income rental units — including more than 73,000 units for very low–income families — through more than 4,500 loans. And recently, the Federal Housing Finance Agency (FHFA) published our Duty to Serve plan, which outlines how we aim to enhance our efforts to serve families who are struggling to find affordable housing in traditionally underserved markets. Learn more about our plan by visiting FHFA's website.
See how Freddie Mac Multifamily is helping lenders, owners, developers, and non-profit organizations provide affordable rental housing.
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