Five Basic Strategies of Developers for Refining Affordable HousingJanuary 25, 2019
Housing is considered as a major financial burden for many lower-income households. As a result, refining affordable housing is an important planning objective.
Dan Greenhalgh and other project managers believe that affordable, stable housing plays a crucial role in the stability of a society, especially in a diverse, dense city like Vancouver.
Five Basic Strategies of Developers for Refining Affordable Housing
In recent years, developers have established a better understanding of how to assess housing affordability development strategies. Below are the five basic strategies of developers for improving housing affordability:
Preserve older housing
Houses depreciate by 1-3% annually, which is great news for affordability in many communities with older but still functional houses. In such areas, providing affordable housing may involve helping low-income households repair and refine to maintain safety and efficiency.
Look for government-subsidized housing
The government can sponsor and subsidize the development of social housing to meet the specific needs of less advantaged people. Most of the time, subsidized housing is the only way to mobilize resources unavailable to private developers.
Follow housing affordability mandates
Inclusionary zoning obliges developers to sell or rent a portion of the units they build at below-market prices. This strategy will be effective if new housing demand is very strong. If the opposite happens, there will be fewer units at moderate prices. As a result, there will lesser affordable housing supply.
Cut Infill development costs
Allow and support owners of surviving urban properties to surge density. Since wood-frame construction tends to be cheapest, and elevators add substantial costs, the most affordable and stable housing tends to be low-rise (2-5 floors) townhouses and multi-family.
Urban fringe development
Public policies encourage development on low-cost urban-fringe land. By using mass production building techniques, developers can produce large numbers of relatively cheap housing, but sprawled development tends to have high infrastructure development costs and forces high future transportation costs on communities. Such housing is a curse to lower-income households if after moving to an automobile-dependent area they will experience an economic shock, such as reduced incomes or fuel price spikes.
Dan Greenhalgh and other project managers hope that these kinds of efforts will ultimately improve communities in which everyone lives peacefully.
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