Interesting when it comes to apartment building, the apartments themselves and their life cycle.
Most new construction in recent years has been at the top end of the market. This is partially due to that’s where the numbers pencil out best for developers but also because that’s where the strongest growth in households has been, in the $100,000 per year and over groups. The majority of the population cannot afford new construction today, but this has largely been the case historically as well.
However, over time housing does become more affordable as it depreciates. This is called filtering and has been a surprisingly contentious topic within the housing discussion lately. The key is that filtering does not happen overnight. It is very much a longer run process. Filtering is also one of the major ways to provide reasonably priced workforce housing for those making in or around the median family income.
To show how filtering works and put some local numbers to it…
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