CREJ

Page 34 — Multifamily Properties Quarterly — May 2021 www.crej.com Many things actually.The media attention to housing is the most obvi- ous, but it’s more substantive than just news coverage. Even though it took a year of unrelenting lobbying, Congress allocated nearly $50 billion in emer- gency rental assistance between the last two COVID-19 relief packages.This is a truly staggering amount and far more than most housing advocates would have dreamed of when we started this campaign.To put it in perspective, for years the National Multifamily Housing Council had requested $20 million in additional housing voucher funding for victims of domestic violence. Congress just appropriated $5 billion for that very purpose. Policymakers also seem finally to understand that although most of the obstacles to building the new housing our country needs are erected at the state and local level through exclusion- ary zoning and costly regulations, there is a role for the federal government to play. It remains to be seen what Congress actually will be able to pass in an infra- structure bill, but it is even notable that President Biden’s $2.25 trillion infrastructure plan includes $213 bil- lion to produce, preserve and retrofit more than 2 million affordable and sustainable places to live. Perhaps more importantly, it seeks to leverage federal funding to incentivize the elimination of state and local exclusionary zoning laws. NMHC has been lobbying to have housing included in any infrastructure proposal.We were definitely making progress, but the pandemic’s role in emphasizing the importance of housing surely accelerated it. To be sure, the Biden proposal is just that for now, a proposal. And there is a lot more all levels of government can do to support housing affordability. Zoning reform, and specifically the elimination of single-family-only zoning, needs to spread beyond a few first-mover states and localities. Cities and states need to come to the table with more solutions- focused proposals, such as providing surplus public land for affordable hous- ing projects, tax abatement for dedi- cated workforce housing, by-right devel- opment for multifamily and dedicated funding sources to support housing. They also need to examine their exist- ing regulations through a housing lens to remove unnecessary barriers that drive rents higher. An NMHC/National Association of Home Builders research report found that government regula- tion accounts for an average of 32.1% of multifamily development costs, and in a quarter of cases, that number can reach as high as 42.6%. Without those kinds of targeted and intentional actions, there is simply no way for the private sector to create new housing that is affordable to most work- ing households because of high labor, land and materials costs. Policymakers also need to abandon seemingly “free” solutions, like rent control, that actually worsen affordability by discouraging new housing production and invest- ments in building repair and renovation and encourage rental housing provid- ers to remove their properties from the rental stock. But the first step to making any of those things happen is to be top of mind when elected officials think about the post-pandemic recovery and to have a seat at the table with policymakers. For those of us who have been in the trenches of housing policy for so many years, it does feel like maybe, hopefully, the pandemic has put housing front and center. s kduty@nmhc.org Continued from Page 1 Outlook increase in the number of offers. Assets that might have sat on the market a year ago are being snapped up.These trends are likely to continue, supported by interest rates that still sit far below prepandemic levels. Many owners took advantage of these historically low rates by refinancing their properties in 2020.Those refinanced properties will be held from the market, further contributing to low inventory, rising prices and a seller’s market. Projected new construction starts will compound this effect, falling well behind the prior five-year average and expanding by just 2.2%, or 6,820 units, in 2021. Inventory limitations are particularly apparent in Denver’s single-family market, with the median Denver MSA home price rising by 14% in the last year.These historically high single- family home prices will help to drive apartment demand as potential home- buyers find themselves outpriced.This will have a positive effect on occupancy and rental rates for Class B and C apart- ments. Investors may experience more obstacles to purchase, including a lack of available inventory, high prices and increased competition. However, cur- rent owners and investors who can participate in the Denver market will benefit from a spring and summer of increased leasing, occupancy and val- ues. s boomer.beatty@marcusmillichap.com peter.standley@marcusmillichap.com Beatty Continued from Page 4 of deals under pressure in the short run. Although some headwinds exist for investors looking to deploy capital into Colorado Springs, the newfound popularity should bring more liquid- ity to the market as current owners look to capitalize on tremendous price appreciation, new investors continue to target the market’s strong fundamentals and developers increase pace to add inventory to the market. It is exciting to see Colorado Springs step into the limelight as a preferred market on the Front Range, and the growth is far from over. In addition to the classic funda- mentals of a dynamic and diversifying economy, an unmatched quality of life and relative affordability compared to other western U.S. markets, the region also benefits from concerted public and private efforts to strategically revitalize downtown Colorado Springs, further investment in aerospace and technol- ogy and elevated national prominence as a crucial citadel of defense.These dynamics continue to attract new com- panies and encourage existing employ- ers to expand, leaving little question as to why this market deserves the atten- tion it has seen. s christopher.white@am.jll.com mack.nelson@am.jll.com White Continued from Page 6