PT  - JOURNAL ARTICLE
AU  - Laurie S. Goodman
AU  - Karan Kaul
AU  - Michael Neal
TI  - Improvements in Financing Could Increase the Single-Family Affordable Housing Supply
AID  - 10.3905/jsf.2022.1.132
DP  - 2022 Apr 30
TA  - The Journal of Structured Finance
PG  - 38--47
VI  - 28
IP  - 1
4099  - https://pm-research.com/content/28/1/38.short
4100  - https://pm-research.com/content/28/1/38.full
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.