So a developer working with the government and getting incentives builds a nice neighborhood of homes that people can afford. People in the target income group buy the houses. All good. But when housing prices spike, what keeps the houses in the hands of the targeted economic group. When owner goes to sell, won’t the market dictate what happens, opening up the neighborhood to what has been referred to as gentrification?
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At least speaking generally, affordable housing is rental property. Local governments look at average incomes (usually adjusted for size of household), set a maximum qualifying income, then set rent based on that (usually adjusted for number of bedrooms).
Landlords are then required to keep rent prices below those limits.
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