As Babyboomers struggle to retire, and Millennials work hard to begin, affordable housing becomes a universal necessity. The two largest populated generations share the same need when the supply is at its lowest. The lack of it is a solvable, but currently debilitating problem. Without affordable housing, the entire community (young and old) suffers, while the real estate crowdfunding potentials to changing this climate have the potential to create wealth and additionally secure lives.
We can refer to people over 50 as Babyboomers. But no matter how we refer to each population, it is clear that our Demographics continue to dramatically change. According to the Joint Center For Housing Studies of Harvard University, "The number of people over the age of 50 is predicted to increase by 20% in the next 20 years. People who are now in their 50’s and 60’s, and moving into their 70’s and 80’s, currently drive household demands." Lifespans are increasing, but the income-producing years are not. The portion of the Babyboomers, who are primed for retirement, will likely settle into the homes they purchase now, for the remainder of their lives. Affordable housing, for homeowners and renters alike, is essential. And, it is essential now.
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Remodeling older homes with accoutrements to support the needs of the aging population, whether renters or homeowners, is setting a trend. Whether remodeling or building from the ground up, the trend in urban development, is to build with the Babyboomers in mind: to meet the unique demands of the largest senior population in American history. Creating homes that can accommodate physical needs of the aging, in locations convenient to community resources will prove to remain profitable, as this large population continues to drive housing demand. Investing in the support of Babyboomers now, will serve the ever increasing aging populations of our future. No matter our age, we are all increasingly likely to strive to maintain our independence for a long time, and naturally support and preserve our communities in return.
Affordable housing, particularly rental properties, is needed to propel the success of communities, particularly for our Millennials. People between the ages of 25 and 45 are marrying later, and are therefore likely to combine incomes and settle into home ownership later in life than the preceding Babyboomers. Young or old, many are paying 30-50% of our monthly income in housing costs, resulting in the sacrifice of other essential needs. Whether sacrifices come in the form of personal food and healthcare, or in decreased time to positively raise our youth, we all pay for the effects of high housing costs. And, whether we are on the investing/building or consumer side, we all benefit from the effects of increased affordable housing.
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There is no greater example of the exploding costs of housing than within the city of Los Angeles. As quoted in The LA Times this, “Housing prices in Los Angeles have grown four times faster than incomes since 2000.” And “One in four households spends at least half of its income in housing.”
Will this result in even more people moving farther away and commuting to cities of industry where housing is virtually unattainable to most? In addition to the community-wide impact of such sacrifices, there are ecological ramifications of forced commuting. Air pollution is an important one.
Young or old, renters or owners, we are suddenly aware of just how vicious this high-housing-cost cycle can be, and how valuable and urgent it is that we create affordable housing. Through crowdfunding? Of course. This is the community-wise, community involved, and wealth-building venue to expedite this urgent solve. With Patch of Land and other crowdfunding communities striving to make affordable housing a reality, where would you start?
