3 Strategies to Make Affordable Housing Profitable
The population of the United States is expected to grow to 398 million residents by the year 2050. That is an increase of 64 million from the estimated 338 million residents in 2020 in the US. These people will need housing with access to work, education, healthcare and shopping. The demand for affordable apartments and single-family homes is increasing every year.
Creative solutions to this essential need will require investment from private developers backed by local, state and federal governments. If you want to invest in these types of building developments, contact an expert like Steven Taylor Taylor Equities.
- Design Mixed-Use Developments
Innovative building developments can utilize mixed-used housing to create opportunities for business while adding housing units. Types of multifunction housing developments include:
- Retail business locations with condominiums or apartments
- University education centers with faculty and student housing
- Transportation hubs with business and residential housing units
- Build in An Underserved Area
Abandoned factories and older inner-city areas provide an exciting investment opportunity if implemented correctly. When imaginative urban planners team with real estate investors to create a walking city for residents, the area often attracts more business investment.
A mixed-use housing development can include designated areas for small business organizations and affordable housing. Large anchor businesses and government organizations can partially subsidize the development costs. This creates a vibrant community that promotes cultural diversification instead of ‘gentrification’ of an older city.
- Experiment With Alternative Building Technologies
One alternative to traditional building methods is modular construction. The building components are manufactured off-site and transported to the location for assembly. Benefits include a faster completion time, better quality control and reduced cost and waste.
Investment in regional modular construction factories creates long-term employment instead of seasonal-only employment.
Meeting the housing needs in the 21st century will require smart investment by business and government interests. Start planning and investing now for the future of your family.