Fannie Mae report: U.S. woefully short on affordable rental housing

Multi-family housing continues to be in demand across the nation, but a recent report from Fannie Mae declares there to be a particular need for affordable housing, as well as more rental units in general, according to REIT.com.

The report, “Fannie Mae and Workforce Rental Housing,” indicates that market conditions show that the current number of occupied multi-family rental units – 15.2 million – is not enough to meet the growing demand. Industry pundits ascribe this rising need to the ongoing economic and housing recovery, coupled with a change in attitude toward homeownership.

A 2010 housing reports from Harvard University shows a major decline in the number of affordable rental units available to households earning a full time minimum wage – a 15.6 percent drop from 1997 to 2007. Most of the units were demolished, lost to natural disaster, abandoned, or converted for non-housing purposes, according to the report.

Of the current 15.2 million rental units in the U.S., Fannie Mae said that only about 6.5 million units are considered affordable housing to those earning less than half of their area's medium income (AMI). The number of affordable units available for households earning less than 30 percent of AMI is significantly lower at 2.4 million, according to Fannie Mae, which noted that many households are spending more than 30 percent of their income to rent an apartment.

For more information: http://www.reit.com/Articles/Fannie-Mae-Focuses-Multifamily-Efforts-on-A...