Growing economic uncertainty has fueled concerns about affordable housing developers’ ability to finance new projects, but it has also brought increased attention to the undersupplied market.
In an interview with Multi-Housing News, Stephanie Wiggins, managing director and head of production for PGIM Real Estate’s agency lending platform, emphasized the need for all affordable housing development stakeholders to continue working together as affordability concerns worsen.
Wiggins: The spike in rates and inflation are significant concerns for the affordable housing industry. High interest rates impact loan proceeds and developers’ and owners’ ability to build, reinvest in, or purchase affordable housing. And high inflation impacts tenants directly, jeopardizing a family’s economic stability and mobility when prices increase significantly more than a family’s wages. The cost of living is increasing. This is adding pressure and stress to many households and to an already stressed system where the affordable multifamily housing market is undersupplied.
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