Developers Discuss Dilemma: Low-income Housing for Florida Mortgages Seekers vs. Builder Profits

Those below the upper class looking to take out a Florida mortgage often face a few obstalces; namely, price.

Even as median home prices fall in the state, too many potential borrowers simply cannot afford property in most areas. A major reason why? Developers need to make their own money.

Here are a few views on the battle between supplying buyers with affordable housing and actually earning a buck themselves, presented by a trio of home builders:

Greg Matus, regional manager, Marcus & Millichap:

“Because building and land costs have gone up substantially, it’s hard for developers to build affordable housing. So many condo conversions have taken place, there’s not as much quality housing for young professionals. Rents have already been pushed 10 to 15 plus percent.

“There’s a plethora of tax credit housing surrounding [the Orlando housing market]. Tax credits are something the government issues to the developer to build houses for low-income families. And costs have gone up so much that we need the city and county to get involved to identify land and give them tax credits. If we can do that, we can continue to grow low-income housing.

“We also need to encourage more vertical construction so we can put more rental units on a smaller piece of land.”

Jay Ballard, senior director, apartment brokerage services, Cushman & Wakefield Inc.:

“From my perspective, I think it’s going to take a combination of government intervention and some sort of tax abatement or relief. Additionally, I think it’s going to take some relaxing of the Martinez Doctrine so sites could be rezoned to allow for more multifamily development, thereby allowing some sort of relief of barriers of entry related to school concurrency.”

Bob Miller, executive vice president, multifamily group, CB Richard Ellis:

“An apartment developer or owner is looking at how to make money. It’s all supply and demand. Not that many are being built, and rents are increasing.

“If there were some greater incentives for building tax-credit properties, then that would create more development for affordable housing, which is down right now.

“Unless they provide something, I don’t see it getting better; I just see it getting worse.

“There may be incentives for nonprofit organizations to develop. If you don’t have any incentives, people aren’t going to build them.”

What can you do to find out more? Our brokers will explain various aspect of bad credit home loans and show how many of these resources won’t disrupt your finances. It may be the best option you have until developers build more income-friendly units.