America's Housing Challenge

• 30% - Nearly 1/3 of American households devote more than 30 percent of their income to housing costs.
• 50% - Eleven million renters spend more than half their household budget on a place to call home. 
• 2 Million - Two million seniors spend more than 50 percent of their income on rent during their "golden years."
• 37 - For every 100 extremely low-income household, there are just 37 affordable rental units available. 

New Housing is Expensive

The rising price of new housing developments is one part of the problem. In 2017, Fannie Mae estimated the average cost of building a one to three story apartment to be $192 per square foot, a 30% increase from 2013.

• This often translates into rents between $1,500 and $2,000 a month. 
• Families need to earn between $60k and $80k per year to afford that, which is beyond the reach of low-to-moderate income consumers. 

Why the Squeeze?

• Experts, like the Federal Reserve, say this housing shortage is due in part to zoning and land use regulations that limit available space for development.
• As a result, fewer multi-family and low-income housing units are built.

Banks Are Making a Difference

Banks understand that affordable housing requires more than making a loan. It takes flexible capital and cooperative relationships with consumer groups, nonprofits and government agencies to foster community development. 

To Help Meet These Housing Needs, Banks Work With:

• Nonprofits and Community Development Financial Institutions (CDFIs) to provide products with flexible underwriting standards and technical assistance.
• State Housing Finance Agencies (HFAs) to secure low interest rates, low down payment mortgages and closing cost assistance for low-and moderate-income buyers.
• The Department of Housing and Urban Development (HUD) to participate in their Rental Assistance Demonstration (RAD) program and Home Investment Partnership program (HOME).
• Government Sponsored Enterprises (GSEs) like Fannie Mae, Freddie Mac and the Federal Home Loan Banks to access funding for well-priced single family and multi-family loans and to participate in the Affordable Housing Program (AHP) and the Community Investment Program (CIP). 

This type of collaboration between banks and housing-focuses agencies helps many Americans in need find a place to call home in a challenging housing market.

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