Yardi Matrix released their National Affordable Housing Report which compares rents between market rate and fully affordable housing units in their database.
By The Numbers: The database encompasses 120,000 multifamily properties (26,000 fully affordable) and 23 million units (3.5 million fully affordable).
- In some metros, a large percentage of market rate properties’ advertised rents are competitive with fully affordable properties’ rents, while in others there is very little competition between the two.
- Within each metro, the level of competitiveness varies greatly, depending on factors that include the cost of market rate rents, the amount of supply, the age of the multifamily stock and the income of residents within each submarket.
- The level of competitiveness in metro regions is a key component in affordable housing performance. Market rate properties that are competitive with affordable properties serve overlapping income groups and may compete for the same tenants. Occupancy rates of fully affordable properties are generally higher in metros where market rate rents are less competitive with affordable rents.
