IPN Valuers’ Post

Great research by Harvard Joint Center for Housing Studies that explores the relationship of housing submarkets and residential vacancy chains. Here are a few extracts: "We find that vacancy chains are short, with 90% ending within three rounds of moves; and, consequently, that each new suburban home leads to only .015 moves in low-income urban neighborhoods." " This result confirms what our descriptive analysis suggests – that expanding the supply of suburban housing will not make dense urban areas more affordable. Instead, policies that promote greater urban density – and especially those that increase the supply of relatively affordable housing – will be more effective at making cities more affordable for low- and middle-income households." "Our results imply that new suburban housing supply has little effect on urban housing affordability or on the welfare of low-income urban households."

A recent report by the Institute for Fiscal Studies (IFS) highlights the spatial significance of housing delivery. The report states that since house prices took off in the mid 1990s, growth in the total number of homes has largely kept up with growth in the population of England as a whole. Between 1996 and 2021, the total number of properties grew by 21%, which was in fact slightly ahead of growth in the adult population (aged 16 and over) which was 20%. The IFS report highlights that although physical constraints play a role in housing delivery – by far the most important source of variation in local housing supply elasticities is lack of available land that it is available to build on. The IFS report advises that supply constraints affect not only the number of properties built but also the types of properties. In areas with greater constraints on land use, additional housing is more likely to be made up of one- and two-bed properties compared wtih family homes. This is why strategic planning is so important, as it allows for a subregional or wider approach to housing need and the necessary infrastructure to support delivery. Details of the IFS report can be found at: https://lnkd.in/eYGX-Yu9 #strategicplanning #housing #sustainabledevelopment

The buyer interest in multigenerational housing seems to have increased since 2020. Currently, there are not a lot of affordable options available for buyers in the market looking for this type of housing.

In the midst of a housing crisis, CMHC has projected housing starts to continue to decline over 2024. This will not come as a surprise to development experts who have been watching condo projects get delayed due to slowing pre-sales and excessive costs. With the housing start projections forecasting a drop in development by roughly 50k units between the peak of 2021 starts and the trough of 2024 starts, the supply-demand gap that is driving high shelter costs along with elevated interest rates is unlikely to meaningfully change. The good news of these forecasts is that a quarter million new starts in 2025 could actually make a meaningful change in the supply-demand gap, as the new population targets expected to be announced by Minister Marc Miller will likely result in net population growth that is smaller than net supply growth.

🏡 How can Australia house a growing population without building more homes? 🌇 According to a recent article from The Sydney Morning Herald, the Australian government aims to build 1.2 million homes over the next five years. However, have you ever considered the 3.5 million spare bedrooms across the country? 🛏️ This thought-provoking piece explores an alternative perspective on housing solutions. It suggests that instead of solely focusing on new constructions, we should also consider utilizing the existing unused space. By encouraging homeowners to rent out their spare bedrooms, we can provide affordable housing options and alleviate the pressure on the housing market. To dive deeper into this intriguing topic, click the link below to read the full story. And don't forget to connect with us for more up-to-date real estate news! 📚 👉 Read the full story: [Link to the article] 🔗 Connect with us for more up-to-date Real Estate News!

Addressing Housing Cost Overburden in the EU: A Critical Analysis for 2024 Housing affordability remains a pressing issue in the EU, particularly in urban centers where demand continues to outpace supply. According to recent statistics, 10.4% of urban residents and 6.2% of those in rural areas face significant housing cost overburden. This disparity highlights the unique challenges faced by urban dwellers due to the higher cost of living and competitive housing markets. Regional variations across the EU highlight broader trends, with Greece, Denmark, and the Netherlands experiencing the highest urban overburden rates at 32.4%, 21.9%, and 15.3%, respectively. Meanwhile, Lithuania, Malta, and Hungary reported the lowest rates, suggesting more favorable housing cost-to-income ratios. Efforts to address this issue include policy measures aimed at increasing affordable housing stock and financial assistance programs to aid those most affected. For government officials and top managers, these statistics serve as a call to action to devise localized strategies that address both urban and rural needs. Policy considerations might include enhancing regulatory frameworks to encourage the development of affordable housing, implementing targeted financial subsidies or rent controls in high-demand urban areas, and promoting rural development to reduce migration pressures on urban centers. The ongoing urban-rural disparity in housing affordability requires a nuanced approach to policymaking, with a focus on sustainability and inclusivity. Ensuring that housing remains affordable is crucial not only for economic stability but also for the social well-being of all EU citizens. As we move into 2024, the continuation of these efforts will be vital in shaping resilient and inclusive housing markets across the EU.

Today, the Department of Housing, Local Government and Heritage published its social and affordable housing delivery statistics for Q4 2023 showing strong delivery for social and affordable housing last year with momentum building on the progress made during 2022. Key points are: ·      Close to 12,000 new social homes were delivered in 2023 – 16% increase on 2022 – highest level in decades ·      Robust pipeline for the future with 22,500 social homes either on site or at design and tender stage ·      Over 4,000 affordable homes delivered in 2023 – more than double the previous year More here: https://lnkd.in/e7Mwhy5Y. 

Mapped: The World’s Least Affordable Housing Markets in 2024

A new report from NIC MAP Vision shows that the senior housing market stands at a critical crossroads, facing an estimated $275 billion investment gap between 2024 and 2030. This gap is driven by the rapid increase in the population aged 80 and older, which is growing far faster than the availability of senior living options. Despite the soaring demand for senior housing, new construction has plummeted to historic lows, exacerbating the growing shortage of suitable accommondations. The analysis sheds light on emerging opportunities for investors looking to navigate the complex market dynamics, while also providing a clearer view of the financial factors impacting the future of senior housing. Read the full report, linked below, to learn more: 

🏡 A Fresh Approach to Solving America’s Housing Crisis 🏡 What if the answer to America’s housing shortage wasn’t just more homes, but better communities? The UK is tackling its housing crisis with plans for 370,000 homes a year, anchored by “new towns” designed for walkability, sustainability, and thriving neighborhoods. Could the U.S. take inspiration from this bold idea? Across the country, skyrocketing housing prices and a mismatch between supply and demand are leaving millions without affordable options. While traditional suburban sprawl creates car dependency and scattered developments, new towns offer a different vision: 🚶♀️ Walkable streets and bike paths 🌿 Parks and public spaces 🏙️ Mixed-use town centers with shops and schools 🚉 Reliable transit connections In states like Massachusetts, where population density rivals the UK, creating “new town” zoning overlays could unlock this potential. Thoughtful planning can expand housing supply while preserving farmland, reducing environmental impacts, and fostering healthier, more connected lifestyles. These communities won’t solve everything overnight, but they could help ease housing pressures nationwide—and set a new standard for high-quality living. 📖 Explore how this innovative approach could reshape America’s housing future. #AffordableHousing #SustainableCommunities #HousingSolutions #FutureOfLiving #SmartGrowth #HomesForAll