In June, for the second straight month, the cost of rent increased 3.8 percent compared to one-year prior, marking the strongest yearly price gain since 2007. Supply is having a tough time keeping up with demand as more and more people are finally beginning to form their own households. According to a recent study from the Joint Center for Housing Studies, between 2005 and 2015 the number of renter households increased by 9 million. And, as MarketWatch reports, that rate is only increasing, as 2015 saw the number of renter households increase by 1.4 million, the biggest yearly gain on record.
While adding inventory helps, some people believe many new multifamily units cost so much to build that it is almost impossible to set aside some units as affordable. NeighborWorks America, a national nonprofit organization, is looking to effect change by preserving existing housing stock as affordable, instead of relying on new affordable stock.
NeighborWorks wants to buy properties where tax credits and other incentives are due to expire and extend those credits to keep them affordable. This strategy is often times referred to as naturally occurring affordable housing (NOAH).