https://www.afire.org/podcast/risingpressurecast/

The increasing burden of state and local taxes required to face the mounting level of unfunded pension liabilities and other committed liabilities could drive widening differentials in local business and living costs, alter regional growth patterns and thereby affect CRE demand.

The COVID-19 pandemic and its impact on the economy and local tax collections is exacerbating this pre-existing issue.

The latest joint report from the Praedium Group and SitusAMC, published earlier this year in Summit Journal, looks at rising fiscal pressures on state and local governments, including large-scale changes accelerated by the pandemic.

Throughout the stages of the past economic cycle, Praedium and SitusAMC Insights have published a series of joint reports analyzing the fiscal pressures on state governments and how the resulting responses to those fiscal pressures may affect demographic patterns, economic growth trajectories and commercial real estate demand.

On this episode of the AFIRE Podcast, report authors Russell Appel, Founding Principal of The Praedium Group, and Peter Muoio, Ph.D., Senior Director for SitusAMC Insights, discuss how this research has evolved, and what it means for the future of commercial real estate investments.

The AFIRE Podcast

Rising Pressure / State and Local Fiscal Challenges

Affordable housing may be the most important issue facing the commercial real estate industry today. Statistics show a shortage of more than seven million homes in the US alone.

https://www.afire.org/podcast/202404cast/

More than half a million people are experiencing homelessness, and high interest rates and a growing population are making housing more expensive for more people.

So—how do we solve the problem?

What options are available to those of us who are investors, developers, builders, owners, and operators?

To get some answers on the current housing situation—and future-focused solutions—AFIRE CEO and podcast host Gunnar Branson recently sat down with Paul Bernard, president and CEO of Affordable Homes & Communities, a nonprofit developer with a focus on housing creation in Maryland, Virginia, and Washington, DC.

Bernard argues that the housing crisis is partly caused by barriers to new construction, leading to high homelessness rates, high housing costs and insufficient supply. 

Affordable housing is not a commodity, Bernard says. Instead, it’s an asset class where developers and investors can follow concrete steps to alleviate housing availability issues and still find returns. According to Bernard, building more affordable developments requires an all-hands-on-deck approach, starting with a new narrative that will change public opinion of affordable housing, tax credits and renewed, innovative, problem-solving partnerships with nonprofits, for-profits and the public sector.

Paul Bernard on Housing and Affordability

AFIRE is the association for international real estate investors focused on commercial property in the United States. www.afire.org

Paul Bernard on Housing and Affordability

AFIRE

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