The Cost of Affordable Housing: Does It Pencil Out?
While affordable housing for low-income families remains in high demand, developers are hard-pressed to find the investment funding they need due to the significant costs of building, operating, and maintaining rental properties, according to a new report from the Urban Institute. An accompanying interactive feature uses rental and income data from the Denver metro area to illustrate why low-income housing units often do not yield returns on investment because of low rents. The Cost of Affordable Housing: Does It Pencil Out? argues that government subsidies, ranging from rental assistance to tax credits and grants, are critical to making low-income housing developments more financially stable endeavors.