Shrinking Housing Supply Leads To Home Prices Rising

Written by Posted On Monday, 27 January 2020 14:03

The battle between the ever-shrinking housing supply in the United States against the rapidly increasing number of buyers has led to home prices rising. Adding this to the smaller land supply makes the already undesirable situation for those living in the country’s urban centers much worse.

Affordability Is Still an Issue

The JCHS State of the Nation’s Housing report shows that the price-to-income ratio puts the least affordable metros in the country in major urban region such as Southern California, South Florida, and the New York-Jersey City area. Prospective urban dwellers are struggling now more than ever to find housing they can afford, pointing to a clear problem that has serious economic implications. High urban housing costs restrict people from a more promising job market and with the current struggle millennials are having fitting into the workforce, affordability faces a serious obstacle.

The Light at The End of the Tunnel

Following a recent trend in rezoning laws, a new proposal has risen in Broward County, FL, allowing developers to build homes in commercial and business areas if they meet two conditions: these areas are located near the county’s busiest roads and that some of the new residences are reserved for affordable housing. If the developer cannot guarantee some of the houses will be affordable then they have the option of contributing to a county trust fund that would then subsidize affordable housing projects. The goal of the proposal is to expand the housing supply to drive prices down, something desperately needed given the unprecedented market conditions. As reported by the Broward Housing Council, there is a housing shortage of 42,000 affordable units for moderate income owners and renters within Broward County. Furthermore, it is estimated that the country’s current housing production rate is 300,000 residential units below the national demand, putting supply at a precariously low position.

Broward county statistics

Courtesy Broward Housing Council

Proposals like these that use mixed-use areas open the possibility to counter the high costs that plague the nation. Creating an opportunity to build additional housing units in already occupied business areas, without having to develop new land, is a cheaper alternative for developers. In addition, the proposal doesn’t have to deal with the issue of land shortage and high raw land costs. Moreover, additional accessible urban areas can give the 4.4 million underemployed Americans a greater access to a better job market with, higher paying, full time jobs. The availability of a quality job market would help the growing millennial-led workforce find better jobs, helping to sustain a thriving economy. Initiatives to build lower cost housing can help accommodate the 3.4 million millennials that currently do not have a home and accommodate the future 2.9 million increase in households over the next decade. Creating housing projects within business centers is one solution since there would be a higher supply but also because an urban location with lower costs seems more attractive to a generation with staggering student debt and hipster lifestyle.

Money isn’t Everything

Additional housing in and around business centers may also appeal to senior citizens. The convenience of not having to drive a car and accessibility to various amenities adds utility that senior citizens can’t put a price on. Additionally, the reduction in automobiles will lead to less congestion and less hydrocarbon emissions. Any intention to increase the housing supply is more than welcome, especially when it addresses other issues cities have in the process. Increasing the housing supply is not only important for the sake of the current housing market but also to aid those Americans who are struggling with the economy despite the success of many others.

The need to make the housing market more affordable is clearly an idea whose time has finally come.

From the trenches,

Roy Oppenheim

Orignially posted at: https://southfloridalawblog.com/no-more-mixed-feelings-on-mixed-use-areas/ 

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Roy Oppenheim

From Wall Street to Main Street, Roy Oppenheim is a successful serial entrepreneur and attorney focusing on Florida real estate, foreclosure defense, loss mitigation and Internet ventures.

 

He founded Oppenheim Law in 1989 with his wife Ellen Pilelsky and uniquely positioned the Firm as one of Florida’s leading boutique law firms in Weston, Florida.

 

Serving national, international, and local clients, Mr. Oppenheim has the highest rating (A-V) conferred by Martindale Hubbell Law Directory, the most respected directory of lawyers and law firms in the U.S.

 

In 1989, Mr. Oppenheim also co-founded and served as general counsel to ShopSmart Corp., the company that originated and owned the GNC Gold Card Program, a program that continues to this day and was one of the first cross-promotional programs of its kind.

 

In addition, in 1994, he co-founded Weston Title & Escrow, the oldest title company in Weston, Florida, and he currently serves as its Vice President. In 1999, Mr. Oppenheim served a one-year term on the board of directors for Catalina Lighting, a publicly traded company on the New York Stock Exchange.

 

Growing up in the Bronx, Mr. Oppenheim learned to be focused on success and driven to always persevere for opportunity.

 

In 2009, he started the South Florida Law Blog, which was voted the best business and technology blog by the South Florida Sun-Sentinel. He also serves as an expert witness on title industry practices.

 

Mr. Oppenheim has also authored two law review articles with Jacquelyn Trask; namely, Deconstructing The Black Magic of Securitized Trusts, published in the Stetson University Law Review’s Spring 2012 Edition, and The Emperor’s New Clothes, published in the William & Mary Business Law Review Volume 6.

 

Today, Mr. Oppenheim is a sought-after legal expert on issues relating to the real estate crisis and beyond. In addition to his own blog, he also has been a contributor to Yahoo! Homes, and featured on HuffPost Live, FOX News, and Lifetime TV. In addition he has been quoted in prominent national publications, including USA Today, The New York Times and Huffington Post, among others. Mr. Oppenheim also understands the power of social media, and can be found on a variety of social media platforms.

 

Mr. Oppenheim also speaks fluent German.

 

Admissions

 

  • Florida Bar, 1987; Member of the Real Property Probate and Trust Law Section
  • New York Bar, 1987; United States District for the Southern and Eastern Districts of New York, 1987
  • U.S. District Court, Southern and Middle Districts of Florida, 1993

 

Education

 

  • Princeton University, A.B., cum laude, 1982
  • Northwestern University School of Law, J.D., 1986
    • Member of the Northwestern University Law Review
    • Member of the National Moot Court Team

Original source:  https://www.oppenheimlaw.com/who-we-are/meet-our-team/roy-d-oppenheim-esq/ 

https://www.oppenheimlaw.com

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