In today’s round table discussion, Co-head of JLL’s Multifamily Capital Market’s platform, Christine Espenshade; CEO of Holland Partner Group, Clyde Holland; and Executive Director of Up for Growth National Coalition, Mike Kingsella explore the future of the Multifamily Housing Market and the policies shaping its trajectory.
The FutureWhile Clyde, Christine, and Mike agree that the outlook is positive and the economy is picking up, the supply is already a problem for the increasing demand in the market.
Clyde advises developers and builders to get start building now to get ahead of the projected buying challenges, with the knowledge that it may be slow in the beginning but will pay off as demand increases.
Christine emphasizes that institutional investors are already interested and willing to support these long-term projects because they know that the investment promises steady, safe returns. The shift from home ownership to long-term apartment occupancy is also a clear marker that multifamily housing is a crucial option the market needs to focus on.
Policies Slow ProgressionMike sees the issue of supply stemming from the exclusionary policies that are suppressing growth. At Up For Growth National Coalition, their mission is to advocate for a new approach to housing development, focusing on how growth benefits everyone in the community.
Clyde, an original founder of Up for Growth, feels the push back from the city council against development regularly.
“Even though there is a housing crisis my building housing is considered a negative… Cities have responded to housing not being affordable by introducing policies that made it more expensive.”
He adds that developer’s voices are often not valued because people think their motives and projects are all about making money, not about improving their community. Up for Growth acts as the voice for this cause, advocating for more affordable housing close to jobs and transportation so employees can spend more time with their families.
“If you have to commute for two hours each way in order to gain a job in the SF Bay Area, the breadwinner doesn’t have an opportunity to spend time with their spouse and their kids,” said Mike.
Mike and Clyde see a combination of tax-exempt bond financing for affordable housing at the federal level combined with state-regulated opportunities for development as the solution to both traffic congestion and housing challenges.
Christine also concludes that we need to think about housing as a holistic approach to growing our economy and mixing these government partnerships with private investments for a positive long-term plan.
Jesse Stein | Global Head of Real Estate at Airbnb
Hamid Moghadam | Co-Founder, Chairman and CEO of Prologis
Sharon Wilson Géno | President of the National Multifamily Housing Council (NMHC)
Alice Carr | CEO of April Housing
Francis Najafi | Founder and Chief Executive Officer of Pivotal Group
Doug Weill | Co-Founder and Co-Manager of Hodes Weill & Associates
Steve Kimmelman | Founder, CEO and Executive Chairman of Redwood Living
Gary Beasley | CEO and Co-Founder of Roofstock
Brad Inman | Founder of Inman
Michael Covarrubias, Chairman and Co-CEO of TMG Partners | Cyrus Sanandaji, CEO of Presidio Bay Ventures
Mark Zandi | Chief Economist at Moody’s Analytics
Daniel Radek | President of First Washington Realty
Deb Harmon, Co-Founder and Co-Chief Executive Officer of Artemis | Anar Chudgar, Co-President of Artemis
Amanda Fajak, President of Walking the Talk | Larry Krema, Managing Director of ZRG
Rick Caruso | Founder and Executive Chairman of Caruso
Stephanie Biernbaum, Chief People Officer of Hines and Doug Holte, CEO of EXP by Hines
Scott Rechler | Chairman and CEO of RXR
Colin Connolly | President and CEO of Cousins Properties
Caroline Johns | Director of Sustainability at Pembroke
Brad Dockser | CEO and Co-Founder of GreenGen
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