Fixing the Lack of Affordable Housing in Urban and Suburban Markets
It is widely considered that the housing market is broken.
Aaron Gorin, founder of Cedar Grove Partners, LLC, states that there are two answers that often arise to meet this question. One, that the demand for this kind of property is too high. Or two, that not enough property is being built. Urban and suburban populations struggle when wage increases fail to keep up with housing price increases, which leaves working professionals with less and less disposable income each year. For these people, accommodation comprises a huge proportion of their income. Aaron Gorin asks the question: Is it that housing is too expensive, or that it’s simply not good value for money?
The lack of affordable housing
It makes sense that better access to professional employment leads to an increase in a city’s overall wealth. By meeting the needs of these high-calibre working professionals, an area can expect a notable influx in population, a rise in average household income, and a stronger inclination to see better accommodation being built. When this doesn’t happen, it causes a detrimental knock-on effect, affecting affordability for those in the urban and suburban markets.
Fixing the housing shortage
One solution to tackle this issue is working to increase the number of affordable, quality apartment buildings, bringing about a rise in occupancy and attracting more local businesses to the area.
Middle-class renters are increasingly seeking property in less expensive areas, with better access to more modern job hubs like San Francisco and Seattle. With the ever-increasing number of working professionals looking to relocate to suburban areas, investors who are able to cater to this crucial demographic will be able to seek reliable long-term investments and generate a steady revenue of passive income.
Companies like Cedar Grove Partners LLC are a key contributor to the effort in combating this problem. Companies like these from the bottom-up, convert undesirable properties into high-end tech hubs for working professionals. By continuing to allow the sale of poor quality accommodation at luxury prices, we risk driving away hard-working professionals from our cities and suburbs and the prosperity they assuredly bring with them. Aaron Gorin, however, proposes to invest in these areas, improving the quality of the available accommodation and generating a reliable return on investment.
About Cedar Grove Partners LLC
Cedar Grove Partners LLC is a New York-based, vertically-integrated owner-operator of quality workforce focused multi-family assets in secondary and tertiary cities throughout the Midwest and Southeast. Since its inception in 2015, we have taken pride in our impeccable reputation for tenant relations, transactional ease, and community building activities.
