Our MissionOur mission is simple: Affordable Homes for America.
How bad is the problem?Glad you asked.
Starter Homes: A Thing of the PastFinding an affordable home is a crisis from coast to coast, and everywhere in between. Over one million new households are formed annually, but there is a deficit in supply of over 3 million homes – new construction simply isn’t keeping up with demand, particularly at the affordable end of the spectrum.
New construction today is squarely above $200,000 , which places the sale price of “starter homes” today at almost $250,000. At current interest rates, that would require an annual income of over $75,000 along with a downpayment.
Today, Americans at the median income make $29,000 less than the income needed to buy homes at the median sales price. How did this happen?
New construction today is squarely above $200,000 , which places the sale price of “starter homes” today at almost $250,000. At current interest rates, that would require an annual income of over $75,000 along with a downpayment.
Today, Americans at the median income make $29,000 less than the income needed to buy homes at the median sales price. How did this happen?
Debt Up, (Net) Income DownSince the 1970s, wages have not kept up with inflation. The ratio of home prices to income has doubled since 1985 – median home prices are now six times the median income. But that is only half the story.
While income has flatlined relative to the price of, well, everything, debt held by the current generation, especially student loans, is far greater than it was for their parents & grandparents. The result? The net income of young families today is lower than that of previous generations at this point in their careers.
Given these sobering statistics, the rate of homeownership for this generation is lower, and it is no great surprise that their propensity to further delay homeownership and rent has never been higher.
Thus the demand for single-family rentals is very strong, but the supply of these homes is limited – especially affordable ones – due to the factors discussed above. The result? Rents spiraling even further out of reach.
While income has flatlined relative to the price of, well, everything, debt held by the current generation, especially student loans, is far greater than it was for their parents & grandparents. The result? The net income of young families today is lower than that of previous generations at this point in their careers.
Given these sobering statistics, the rate of homeownership for this generation is lower, and it is no great surprise that their propensity to further delay homeownership and rent has never been higher.
Thus the demand for single-family rentals is very strong, but the supply of these homes is limited – especially affordable ones – due to the factors discussed above. The result? Rents spiraling even further out of reach.
SFR3’s ApproachAffordable housing is the existential crisis facing new households today.
What is the best way to turn the tide? Should we focus on different ways to increase supply, for instance manufactured homes or looser land use policies?
Or simply subsidize demand, making programs like Section 8 more widely available to young families? While there are many dimensions to an answer, we believe the most economically, socially, and environmentally sound solution must start with existing housing stock.
While other investors target more expensive finished homes, we find dilapidated houses in severe disrepair that haven’t been maintained in decades. Banks won’t finance this inventory, so we don’t compete with retail buyers (deep renovations at retail pricing would be uneconomical anyway).
We use local labor with materials sourced from neighborhood retailers. We reinvest in existing infrastructure – plumbing, sewers, driveways – rather than building new roads to new developments requiring longer commutes. The result? Revitalized neighborhoods with thousands of rentals from Cincinnati to Columbus, built & managed by people who live there. That’s our mission.
”Affordable homes that hard-working Americans at the median income can be proud to live in.”
What is the best way to turn the tide? Should we focus on different ways to increase supply, for instance manufactured homes or looser land use policies?
Or simply subsidize demand, making programs like Section 8 more widely available to young families? While there are many dimensions to an answer, we believe the most economically, socially, and environmentally sound solution must start with existing housing stock.
While other investors target more expensive finished homes, we find dilapidated houses in severe disrepair that haven’t been maintained in decades. Banks won’t finance this inventory, so we don’t compete with retail buyers (deep renovations at retail pricing would be uneconomical anyway).
We use local labor with materials sourced from neighborhood retailers. We reinvest in existing infrastructure – plumbing, sewers, driveways – rather than building new roads to new developments requiring longer commutes. The result? Revitalized neighborhoods with thousands of rentals from Cincinnati to Columbus, built & managed by people who live there. That’s our mission.
”Affordable homes that hard-working Americans at the median income can be proud to live in.”
Need Work?We’ve got thousands of homes…