Do you expect more or fewer affordable housing units to start construction in 2024? And, why?
Fewer units, mostly because pencils were down for a while based on interest rates and insurance costs. If interest rates come down and insurance costs moderate, then we may see increased production toward the end of the year, but probably not until 2025.
What are your expectations for interest rates and financing conditions for affordable housing?
Based on the Federal Reserve’s most recent meeting [in December], we may start to see some interest rate cuts in 2024, which could be very helpful for affordable housing production in the next year.
Biggest threat to affordable housing?
Borrowing costs, construction costs, and operating costs.
Biggest opportunity in affordable housing?
The biggest opportunity would be the Live Local Act in Florida, designed to increase affordable housing opportunities for the state’s workforce.
What is HTG preparing for this year?
Housing Trust Group has 12 deals planned for [this] year. This includes two in Texas, the closing of 1,500 units in our pipeline, and completing construction of 696 units throughout seven developments.
Trend to watch in 2024?
The Federal Reserve’s decisions on interest rates will be something to look out for.