RT Journal Article
SR Electronic
T1 Improvements in Financing Could Increase the Single-Family Affordable Housing Supply
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP jsf.2022.1.132
DO 10.3905/jsf.2022.1.132
A1 Laurie S. Goodman
A1 Karan Kaul
A1 Michael Neal
YR 2022
UL https://pm-research.com/content/early/2022/03/09/jsf.2022.1.132.abstract
AB The United States faces a shortage of housing supply, estimated to be millions of units. This shortage is especially acute in the affordable sector. Although the causes of the supply shortage are many, we focus on one major set of constraints: financing. In particular, we focus on how to improve financing for the three types of affordable single-family housing where we see the most potential: manufactured housing (MH), accessory dwelling units (ADUs), and housing preservation. We argue that these financing issues constrain production; improving financing will grow consumer demand for affordable housing and preservation and prompt builders and manufacturers to respond by increasing supply. Finally, we try to quantify the potential impact in each of these areas to increase housing supply. Overcoming these financing hurdles would remove a major roadblock facing MH, ADU, and housing preservation, and allow for the addition of a significant number of units of affordable housing supply.