Q&A: Affordable housing president discusses the misconceptions of the sector
Jonathan Needell, president and CIO of KIMC, a California-based real estate investment company that specializes in affordable and workforce housing units, discusses the constraints to affordable housing and looming misconceptions surrounding this corner of the residential real estate market.
1. What are the biggest misconceptions at the institutional level about investing in affordable housing and how do you remedy the problem?
There are three main misconceptions at the institutional level that are holding back greater investment in affordable housing.
Misconception 1: Affordable housing is riskier than market-rate housing.
This couldn’t be further from the truth, as I believe affordable housing represents a less risky investment thanks to higher occupancy rates and lower credit loss