AEW has released its essential housing report, which discusses essential housing in the U.S. residential sector.
Geographically, every metropolitan area in the country has a shortage of affordable housing stock, but the shortage is particularly acute in most of the nation’s higher-barrier-to-entry markets, as well as select other geographies where the share of the rental population that is cost-burdened is typically well over 50 percent.
Reflecting the vagaries of residential property development across the United States broadly as well as myriad market specific issues, capital investment in new residential property development disproportionately skews towards higher rent and higher classification rating properties. At the most basic level, land procurement and physical construction costs are largely comparable regardless of the quality or rent level of the property being constructed.
Adding to the high cost of construction, local requirements layer on additio
