Met with the City of Rock Hill this morning to sort out stormwater, sanitary sewer, domestic water, electric, and landscape requirements for Johnston Farms Apartment Homes, our proposed 120-unit workforce housing development.
The city was very accommodating and identified several design changes that will save us hundreds of thousands of dollars in development costs and expedite our approvals.
Many thanks to the city engineers who met with us this morning!
Rising construction & operating costs – along with rising interest rates – were partially offset by significant rent increases for market rate properties in 2022. Many of these deals were salvaged by increased market rents last year.
Not so for affordable multifamily.
Costs and interest rates rose for affordable multifamily, too. But rents – which are tied to household income – increased only modestly in 2022. Because of this, many of these restricted rent deals don’t pencil out.
From the piece:
“The 2023 housing market’s ‘headwinds’ are the same for all homebuilders — high construction costs compounded with high interest rates that have lowered borrowing amounts. But those challenges are especially sharp for affordable housing developers.”
A link to the news piece is found here.
SIPs and modular both have their place in the market. Indeed, at some point modular manufacturers will begin to use R28 SIPs instead of traditional R13 exterior wall construction.
A link to the news story is found here.
This has always puzzled me. When private investment comes to a blighted neighborhood it’s labelled “gentrification” (which is bad, I am told). But when public investment comes, it’s labelled “redevelopment” (which is good, I am told).
Isn’t ANY investment in blighted neighborhoods good? Sure, the people being displaced need a safe/affordable place to live. But the blighted structures they lived in previously weren’t safe.
Isn’t the question we should be asking “What can we do to produce more affordable housing so people don’t have to live in slums?” Saying “Look at those heartless private investors, displacing poor families from blighted, unsafe housing?” seems to miss the point.
A link to the news story is found here.
A brief overview of Tartan Residential’s Workforce Housing Development Initiative:
A brief overview of Tartan Residential’s Energy-Efficient Construction Initiative:
“It’s critical for investors to understand that affordable housing is a strong and stable investment, one that’s resilient even when the economy isn’t. We have seen gains in the real estate market slowing, yet the affordable housing market remains strong.”
Link to article found here.
“Building homes off-site can help speed up the time it takes to complete homes in areas of the country that face extreme weather, Lawrence said, as the initial construction process takes place inside and away from the elements. It’s also more efficient in the sense that workers build the homes in an assembly line approach versus starting from scratch at each job site. Economies of scale not only reduce material costs, but they can also reduce waste generated during construction, Lawrence added. “
Link to article found here.
Transportation costs for modular are as much as 30 times higher than for SIPs. And SIPs deliver an R28 exterior wall while modular delivers R13. The combined reduction in transportation costs and monetized energy savings make SIPs – in many, but not all cases – a very good choice.
Link to article found here.
“Affordable housing has shown itself to be a strong hedge against a recession. While higher-end, higher-rent communities are more likely to be plagued with higher vacancies when residents tighten their belts, affordable housing always remains in demand — if anything, demand is even higher in a downturn.”
Link to article found here.