The Rent Roll with Jay Parsons EP#1 Bob Simpson | The Case For Middle-Income Housing
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Sep 19, 2024 Bob Simpson, the Head of the Multifamily Impact Council, brings his expertise from Fannie Mae and the Senate to discuss the pressing need for middle-income housing. He highlights the investment potential in affordable properties, stressing their long-term performance benefits. The conversation also tackles economic barriers in Texas, innovative solutions for construction, and the vital role of public-private partnerships. Simpson advocates for redefining affordability and the positive impact mixed-income housing can have on communities and investors alike.
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Affordable Housing Outperforms High-End
- Investing in affordable rental housing yields higher average returns and lower volatility over the long term than high-end properties.
- Well-maintained, newer vintage affordable apartments drive better performance without deferred maintenance drawbacks.
Middle-Income Housing Is Stable Investment
- Middle-income rental housing shows lower volatility and competitive returns compared to many other asset classes.
- It has low correlation with stocks and bonds, enhancing portfolio diversification for long-term investors.
Focus on Supply, Not Owners
- Evaluate rental markets by supply-demand dynamics instead of blaming institutional owners for rent increases.
- Understand that institutional investors target scale and stable returns, not rent spikes, which reflects in varied rent growth across regions.