Excerpted from CoStar News story.
Rising costs of land, labor and materials have made it more profitable for developers to build luxury projects, leading to a shortage of units for middle-class residents, brokers and analysts say. In fact, government assistance is needed to close income gaps so more people can reduce exorbitant housing costs, according to a report released this summer by the Joint Center for Housing Studies at Harvard University.
“It’s very difficult, almost impossible, to develop the kind of apartments that the working class can afford,” Zach Ames, senior director for the Franklin Street brokerage in Tampa, Florida, said in an interview. “I don’t know that that’s going to change. It will continue to make value-add a hot subsection of multifamily.”
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