Release date: 1/23/2017
NeighborWorks' network investment in affordable rental housing surges nearly 20 percent in 2016 to almost $2.4 billion
Total affordable home rental portfolio of NeighborWorks organizations exceeds 147,000
Washington, D.C. — With the supply of affordable rental housing declining throughout the U.S., NeighborWorks America reported today that its network of local non-profit builders invested more than $2.38 billion into the development and preservation of rental housing. The affordable housing investment was made through construction, rehabilitation, refinance, and purchase of existing apartments, often specifically to support the needs of low- and moderate-income households, seniors, formerly homeless veterans and disabled individuals.
NeighborWorks organizations invested more than $850 million directly into the construction of new affordable rental homes. As the year ended, more than 147,000 affordable rental homes were being offered in communities across the country, frequently to families where a maximum of 30 percent of their income is devoted to housing costs. All results are for the fiscal year ending Sept. 30, 2016.
"Average asking rents nationwide last year increased by more than 3.5 percent, according to data from Reis, continuing the multi-year trend of the cost of rental housing growing faster than income," said Paul Weech, president and CEO of NeighborWorks America. "These increasingly higher rents put intense pressure on individuals and families struggling to balance their monthly budgets."
"To alleviate this pressure on household budgets, NeighborWorks organizations in 2016 used a variety of financing arrangements to build and acquire more affordable rental housing and also invested in sustaining their portfolio of affordable rental homes so that many families can have more certainty in their housing costs related to their income," Weech said.
More than 16,000 rental homes were constructed, acquired and preserved by NeighborWorks in 2016, while another 52,000 rental homes were maintained with investments in repairs. Even minor repairs to apartments have long-lasting effects on the residents and the quality of the property.
"Nonprofit owners of apartments are committed to maintaining their properties as affordable rental housing for the long haul," explained Weech. "By continuously investing in their communities with new and preserved rental homes and making ongoing small dollar investments, NeighborWorks owners maintain a supply of quality affordable rental housing that are valuable community assets."
About NeighborWorks America
For more than 35 years, NeighborWorks America, a national, nonpartisan nonprofit, has created opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. In the last five years, NeighborWorks organizations have generated more than $27.2 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals..