NAA undertook this survey to show that barriers create higher construction costs which in turn leads to higher rents while making it extremely difficult to build affordable housing, said NAA President and CEO Robert Pinnegar, CAE. The Barriers Index shows that housing, ultimately, is a local issue requiring local government solutions. Reducing burdensome regulations and standing up to NIMBYism will allow for more construction. Together, the rental housing industry and local governments can begin to meet the demand for apartments.
The Index ranked each market according to several factors including community involvement (NIMBYism), construction costs, affordable housing requirements, infrastructure, density and growth restrictions, land supply, environmental restrictions, process complexity, political complexity and time to develop.
Housing affordability is on the top of everyone's mind, Pinnegar said. As cities and states look for solutions, we encourage policymakers to engage all stakeholders, including property owners, to create workable solutions that best serve their community.
The United States needs 4.6 million apartments at all price points by 2030 to keep up with current demand; we have only begun in the last two years to meet these goals. But even so, decades of under-construction have left a massive shortage in overall apartment housing supply. This historic crisis demands an immediate response from the industry and policymakers. Barriers to construction stand in the way of the industry's ability to meet those challenges, and in so doing, relieve the pressure of demand that is driving rents up.
For more information, or to download the U.S. Barriers to Apartment Construction Index visit www.naahq.org/barriers.