Episode 324: Affordable Housing Crisis Not Just a Lower Income Phenomena, Former Fannie Mae Exec Says
The affordable housing crisis facing the United States today is not just a lower-income phenomena, but impacts individuals making six-figure salaries, says Kenneth Bacon, co-founder and managing partner of financial advisory and asset management firm RailField Partners, and former Fannie Mae executive.
Speaking on the REIT Report, Bacon, who also serves as board chair at Welltower Inc. (NYSE: WELL), said \u201cif you pull back the covers and look at the data, you'll see that young professionals, people earning six figure salaries in cities like San Francisco and New York, are hard pressed to find places that they can afford.\u201d
Bacon said the biggest problem behind the lack of affordable housing today is that the building process has become too long and difficult.
As for the state of the commercial real estate sector today, Bacon said that as interest rates rise he sees a return to a \u201cmore normalized investment ecology.\u201d That in turn will mean that investors are \u201cgoing to have to work a lot harder to get some of these returns. I think some deals just aren\u2019t going to get done.\u201d