The world is experiencing a housing shortage that has taken a grave turn. The supply of new houses is not keeping to the demand says Maxwell Drever. Hence, there is a gap between the supply and demand cycle. Every year, there is at least a 20% shortage of affordable housing all across the globe. Hence, the middle and low-income group individuals are facing challenges to get shelter over their heads. Since these individuals have a minimum income, they cannot afford luxurious apartments.
They are always on the hunt for affordable residences in and around the job area. However, government and non-profit organizations have put forward estimates that reveal the shortage of affordable housing. Hence, the crisis has taken a global stance. So, what can be done? The pressing problem requires a combined effort by national and international organizations. Every government will have to create plans and execute the same to reduce the issue to a limit.
Removal of regulatory barriers and providing federal grants to the constructors
First and foremost, national and state governments will have to understand the significance of affordable housing. It is not only significant for the median income group but also for other sections of society. The lack of cheap houses in the city centers has compelled these individuals to live in the suburban areas. Hence, the owners of the means of production are also finding it difficult to get a smooth workforce in the industrial centers. Thus, Maxwell Drever estimates that the need of the hour is the removal of regulatory barriers by state, local, and federal governments and allowing the construction of more apartments and homes. Thus, more tax regulations and federal grants are required so that these constructions are complete within time.
Innovation for increasing productivity at low cost
An increase in the production of affordable houses with reduced time and expenses is the need of the hour. It is a problem that affects almost every section of society. Hence, innovation for building faster and increasing productivity is necessary. Organizations will have to come forward with multifamily housing projects located in and around job locations, reveals Maxwell Drever. Moreover, remodeling existing properties into affordable housing can be another probable solution. It will not only bring scalability in the development of multifamily projects but also speed up the process.
Easy finance for investors to undertake these projects
Yes, individuals who engage in these projects require easy finances. Hence, in mortgages and loans, financial institutions will have to come forward with quick resources. Building these units requires a constant flow of cash. Therefore, low-cost insurance, security deposit, and easy loans are some means to provide funds for these projects. Crowdfunding is another approach that has emerged recently. It is grabbing the attention of new investors and home buyers. Hence, investors may use digital crowdfunding platforms to get their resources in no time.
Lastly, existing properties and hotels for remodeling into affordable housing units can be a viable solution. Scarcity of land is a problem all across the globe. Hence, remodeling of existing properties may help in creating comfortable residential communities.