Builders Patch, Inc.

12/31/2024

📢 What's happening in the U.S. housing market?

📈 US Homelessness Spikes 18% - Why It Matters
🏘️ HUD Launches Major Anti-Homelessness Plan
🔑 Affordable Housing Crisis Takes National Stage

Builders Patch has been curating top industry news that you'll want to read. Check out our latest newsletter digest and subscribe to keep up with the latest news about housing markets and proptech.

Want to stay updated on what's happening in the U.S.

12/04/2024

🏘️ The concept of "cities as a concierge of data" - shared by Connor Lock (City of Long Beach) - captured a key insight at today's California Housing & Community Development panel. With 973k affordable units needed, the data is there, but we're working to build tools to sort through it quickly and meaningfully.

Grateful for the insights from Michael Massie Jamboree Housing Corporation and Connor Lock on bridging the data gap between cities and developers.

As mentioned on the panel, the housing crisis has many causes and needs many solutions. Check out Housing Count for our latest work on streamlining housing feasibility data.

12/03/2024

🏘️We are at the California Housing & Community Development Conference today, Tuesday 12/3 and tomorrow 12/4.

Come say hi at our booth, and drop in for our panel, Leveraging Technology and Policy to Accelerate California's Affordable Housing Pipeline at 2pm PST in the ballroom.

We'll discuss how cities, developers, and technology can work together to break through housing barriers.

04/18/2024

📢 Builders Patch has been curating top industry news that you'll want to read. This week's News Digest highlights:

📌 1. New York Nears a Housing Deal to Confront Affordability Crisis (The New York Times)

After Kathy Hochul's failed New York Housing Compact plan last year, New York State is trying again to tackle its severe housing crisis. According to anonymous sources close to the deal, New York state leaders have reportedly reached a tentative agreement on a legislative plan to tackle the crisis and will be presented to the full Senate and Assembly on Monday. The framework of the deal offers incentives for both developers and tenants. Developers would receive significant tax breaks to develop more affordable units, while tenants would benefit from enhanced protections against eviction in certain cases. Additionally, the agreement would allow landlords of rent-stabilized apartments to raise rents for renovation costs and eliminate size restrictions on new Manhattan apartment buildings, fulfilling long-standing desires of city officials.
📌 2. California's Housing Market Is Getting Worse for Buyers (Newsweek)

The housing market for buyers in California is becoming increasingly challenging. Prices are soaring while the inventory remains limited. Statistics reveal a stark reality: home prices have surged 9.7% over the past year, with the median home price now at $813,980. Meanwhile, inventory levels have plummeted by 48.3%, exacerbating the affordability crisis. Despite historically low mortgage rates, competition remains fierce, leading to bidding wars and further price escalation. Experts suggest that while the market may stabilize in the long term, immediate relief for buyers appears unlikely.

📌 3. Homebuyers’ quandary: to wait or not to wait for lower mortgage rates (The Daily Progress)

Currently, the average rate for a 30-year mortgage stands at around 6.9%, a significant decrease from late October when it peaked at nearly 8%. Despite expectations of rates declining later in the year, some buyers are opting to act now due to fears of increased competition. The combination of high mortgage rates and soaring home prices has made affordability a major concern, with many households earning less than what's needed to afford a median-priced home. While economists anticipate mortgage rates easing, uncertainty remains.

Check out these articles and many more on our news digest page.
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04/01/2024

📢 Builders Patch has been curating top industry news that you'll want to read. This week's News Digest highlights:

💡1. How LA Mayor Karen Bass is tackling homelessness (The New York Times)

Los Angeles Mayor Karen Bass took office in 2022 and since then, has been making a big push to address homelessness, particularly in Venice Beach. Mayor Bass initiated the Inside Safe program to provide motel rooms for homeless residents, resulting in cleaner sidewalks and parks in Venice Beach. However, challenges persist, including budgetary constraints and the need for permanent housing solutions. Critics accuse Bass of prioritizing aesthetics over long-term solutions, while supporters applaud her urgency in tackling the crisis. Despite progress, concerns remain about the sustainability and effectiveness of current efforts, highlighting the complex nature of addressing homelessness in Los Angeles.
📌 2. What makes mortgage professionals embrace, or balk at, AI use (National Mortgage News)

According to a recent market study report by Arizent, where the company surveyed professionals across different financial segments such as banking, insurance, mortgage, technology etc, there is a range of different opinions about AI. Most respondents have concerns over job displacement and ethical considerations persist, especially regarding generative AI's accuracy and fairness. The general attitude among mortgage professionals is to be hyper cautious towards adopting generative AI, and they citied uncertainty and budget constraints as top considerations.

🏥 3. Bipartisan housing policy efforts are gaining traction, but challenges remain (Housing Wire)

There are ongoing bipartisan efforts at various levels of government to address housing supply and pricing challenges in the United States. The importance of local action in addressing these issues, particularly through measures such as accessory dwelling units (ADUs), changes in zoning rules, and reduction of lot sizes, is increasingly becoming evident. Despite political differences, lawmakers in some states are collaborating on bipartisan housing legislation. However, challenges such as NIMBYism hinder progress at the local level, prompting calls for state-level intervention to overcome resistance to housing reforms.

Check out these articles and many more on our news digest page and subscribe today to have these delivered to your mailbox!
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03/20/2024

📢 Builders Patch has been curating top industry news that you'll want to read. This week's News Digest highlights:

💸1. Why private developers are rejecting government money for affordable housing (The Wall Street Journal)

In California, state and local governments have allocated substantial funds for affordable housing initiatives. Despite widespread acknowledgment of the need for affordable housing, publicly funded initiatives face challenges such as labor agreements and bureaucratic processes, which can inflate costs and slow down construction. Many private firms are moving away from a reliance on government funds, which according to them, drives up development cost owing to the red tape. Instead, these firms are exploring alternative financing models.
📌 2. Bill to hold WA cities accountable for affordable housing could return (The Seattle Times)

During the recent legislative session, House Bill 2474, aimed at holding Washington cities accountable for building affordable housing and shelters, gained momentum before dying at the Senate. Despite setbacks, advocates like Michele Thomas stressed the urgency of addressing homelessness, a critical issue highlighted by over 28,000 homeless individuals counted in Washington during the 2023 Point-in-Time count. With hopes for its return next year, the bill reflects a statewide imperative to bridge the gap in housing needs, projected to exceed 500,000 units for low-income earners over the next two decades.

🏥 3. In hospitals, affordable housing gets the long-term investor it needs (The New York Times)

There has been an emergence in partnerships between healthcare systems and affordable housing developers, such as the H3C project in New Orleans, aiming to integrate stable housing with better health outcomes. Supported by investments from entities like Aetna and Kaiser Permanente, these initiatives reflect a growing recognition among health organizations of the benefits of addressing housing insecurity. Such collaborations extend beyond traditional housing projects to include specialized care facilities and initiatives targeting populations with the greatest needs. Additionally, healthcare systems are exploring innovative approaches and interventions aimed at addressing health and housing disparities.

Check out these insightful articles and many more on our news digest page and subscribe today to have these delivered to your mailbox!
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02/06/2024

Excited for this upcoming discussion with founders from the Urban-X Accelerator Program at Columbia University.

🏘️I'll be sharing insights on building UrbanTech solutions for simplifying multifamily housing finance.
🌍You will hear from other terrific founders about integrating sustainability into new building construction.

Keen to join the conversation? Reach out to me on LinkedIn!👍

02/01/2024

Builders Patch has been curating top industry news that you'll want to read. This week's News Digest highlights:

1. Housing is now unaffordable for a record half of all U.S. renters, study finds (NPR)

Rising rents and reduced working hours during the COVID-19 pandemic have left many U.S. renters struggling to make ends meet, with a record 50% paying over 30% of their income on rent and utilities, per Harvard University's report. The unaffordability trend saw the most significant jump among households earning $30,000 to $74,999 annually, with a third of full-time renters still being heavily cost-burdened. Even lower-income renters, already facing severe challenges, experienced a further increase to 83% being cost-burdened. The report attributes the homelessness surge to a severe housing shortage and rising rent costs, exacerbated by a lack of affordable housing options.

2. Funding for proptech plummets 42% (Multifamily Dive)

In 2021 and 2022, the commercial real estate sector experienced a surge in proptech adoption, leading to increased investment. However, a recent report from the Center for Real Estate Technology and Innovation highlights a slowdown in momentum during 2023, attributed to factors such as inflation and geopolitical uncertainty. Venture capital investment in proptech witnessed a significant decline of 42% in 2023, amounting to $11.38 billion, compared to the previous year's total of $19.75 billion and the peak of $32 billion in 2021.

3. How AI and a changing rental market will shape property management in 2024 (Housing Wire)

In 2024, the rental market is poised for transformation with two key factors: the growing impact of artificial intelligence (AI) tools and heightened competition among the multifamily rental market. A survey by AppFolio indicates that nearly half of property management professionals either use AI or plan to adopt it. Property managers face the challenge of maintaining high occupancy rates amidst a competitive market, with delinquencies identified as a top threat. To thrive in this changing landscape, property managers are leveraging AI to enhance operational efficiency, streamline tasks, and improve employee satisfaction, while also focusing on understanding resident expectations and offering digital services to attract and retain modern renters.

Read short summaries on top headlines around affordable housing, proptech, housing policy updates and updates about the general U.S. housing market

01/17/2024

Builders Patch has been curating top industry news that you'll want to read. This week's News Digest highlights:

1. NYC housing costs grew 68% in last decade, highest jump in U.S., report says (Gothamist)

According to a new report by State Comptroller Tom DiNapoli, housing costs in and around New York City have surged by 68% between 2012 and 2022, outpacing other major U.S. metropolitan areas, The average household's housing expenses in New York City and Nassau, Suffolk, Rockland and Westchester counties rose from $18,000 to $30,300 during this period. Across the nation, housing costs make up 34% of average household expenses, whereas for New Yorkers, this has reached a record high of 40%.
2. Why the solution for cheap manufactured starter homes is failing (Business Insider)

Modular housing is seen as a solution to housing shortages, offering efficiency, and cost reduction, but many companies like Katerra and Veev have failed to achieve financial viability. What is ailing the manufactured homes market? Experts believe over-regulation by the Government in the form of restrictive zoning laws, hinders industry growth for these companies. They are unable to build at scale and therefore, unable to turn a profit. Perceptions of inferiority and a lack of consistent demand pose challenges as well.

3. Distress in CRE loans on nonowner-occupied properties rises at US banks (S&P Global)

In recent quarters, US bank loans backed by owner-occupied commercial real estate have outperformed those backed by nonowner-occupied properties. This shift began in 2020 when work-from-home policies impacted nonowner-occupied commercial real estate loans. The delinquency ratio for nonowner-occupied properties surpassed that of owner-occupied ones in 2022 and continued to rise in 2023. The trend suggests that loans on owner-occupied properties carry less risk, reflecting property owners' likelihood to stay current on loans.

Check out these insightful articles and many more on our news digest page and subscribe today to have these delivered to your mailbox! https://hubs.ly/Q02gLxzH0

12/22/2023

!! We are now in 18 states, across 102 cities !!

From affordable housing developers, HFAs to CDFIs, we are proud to be serving our customers all across America, so they can serve their communities better. Thank you for being a part of our network, we are grateful for your support. 🙌

12/07/2023

Are you trying to cut through the noise and understand AI’s potential in affordable housing? Join our CEO, Kanan Ajmera, and federal policymakers and thought leaders in academia, tech, and housing finance as they connect the dots during ’s virtual symposium on “AI and Affordable Housing,” December 13 at Noon ET. Learn more and register at https://hubs.ly/Q02cp8Jf0.

11/30/2023

Builders Patch has been curating top industry news that you'll want to read. This week's News Digest highlights:

1. The launch of a new pilot program called “Plus One ADU” in New York State.

The pilot program will make available $395,000 in funding through HPD and $2.6 million in grant funding from New York State Homes and Community Renewal (HCR), for eligible homeowners to build “accessory dwelling units,” or ADUs, which have proven to be one of the most effective local solutions to tackle housing affordability and offer additional living space for multi-generational housing.
2. Chicago's woes as the City Council comes under federal scrutiny for wrongly limiting affordable housing with aldermanic prerogative, according to HUD

HUD's Lon Meltesen, regional director of HUD’s Office of Fair Housing and Equal Opportunity wrote, "the department’s investigation indicates that the city affords each of its 50 wards a local veto over proposals to build affordable housing and that many majority-white wards use the local veto to block, deter or downsize such proposals.”

3. How where we build homes is helping explain America’s political divide

- Red counties are permitting more housing development than blue counties
- Part of the reasoning for the above could be because these localities are able to build more cheaply and be more responsive to housing needs
- Another reason could be more restrictive zoning, NIMBYism and environmental regulation in blue counties, which can deter housing growth, as we saw in the failure of the NYC Housing Compact case

Check out these insightful articles and many more on our news digest page and subscribe today to have these delivered to your mailbox! https://hubs.ly/Q02bvq480