Challenges are opportunities
The smart make money and do good at the same time.
If you read/watch the news, but even if you don’t, the odds are pretty high you’ve heard of the affordability crisis facing the US.
Just in case though, the problem: we need 7,000,000 affordable homes.
Many ignore the problem because the problem perhaps is not very personal. Or, maybe you believe that affordable housing is bad, is a charity or something that will hurt your community or personal property valuation.
You might be thinking… the problem feels like someone else’s, it doesn’t feel solvable and it most certainty doesn’t feel like investment potential.
But...what if, affordable did not equal less profits? And what if, affordable housing was…
The Greatest Investment Opportunity of our Lifetime
What is the affordable housing crisis?
How it affects you more than you know
The opportunity of a lifetime
1. What is the affordable housing crisis?
The housing affordability crisis isn't just a societal problem—it’s an economic one. As 75% of Americans are priced out of homeownership, demand for rentals is rising fast.
However, with increasing costs, even landlords face challenges as they struggle to balance rents and the rising cost of ownership. As properties age and become more expensive to maintain, many owners will either raise rents, cut back on upkeep or be forced to sell at diminished values.
But can they actually raise rents?
Avg. Rent in 2024 = $1,813
To qualify (3x): $5,439 = $65,268/yr
Avg. Salary in 2024 = $62,075
Do you see the Issue?
2. How it affects you more than you know
The more housing becomes unaffordable, the more significant its effects on various markets. Renters, unable to save for homeownership, will be squeezed, cutting back on other expenditures and reducing their overall contribution to the economy. As this crisis worsens, it creates a chain reaction: reduced spending, lower growth in consumer goods sectors, and a drop in economic mobility.
Fact: By 2030, 75 million baby boomers will retire with a median income of $47,000. With the average home costing $350,000 and rents climbing, creating an unsustainable future for many retirees.
This is our parents, grandparents, and your friends parents. This is not just their problem it’s a problem for all of us.
3. The opportunity of a lifetime
The current market conditions create a perfect storm, but those who adapt and innovate will see both financial gains and the profound satisfaction of contributing to positive societal change.
In every crisis lies opportunity. With the median home construction price of at $233 per square. ft., what if we could build homes for half of that cost and at a fraction of the time? We’re talking about building smarter, faster and cheaper but with the same if not better quality. Do you think this creates an opportunity to disrupt through innovation.
It reminds me of what Netflix did to Blockbuster (do you remember having to rent a movie?) or What Apple did with the iPod (how many of you still have a book of CD’s somewhere as momentous?).
Can leveraging emerging technologies in construction and business intelligence contribute to solving the housing crisis while also securing long-term, stable returns for investors?
Should investors care about these issues?
Perhaps the real question is… how could you not care?
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Tell me what you think below in comment section?
Jon
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