Host Edition: The Challenges of Building Affordable Housing in Expensive Cities

Follow Mike and Shawn on Instagram:

• Shawn: @shawndimartile_
• Mike: @miketighe_

In this episode of the Real Estate Takeoff podcast, hosts Shawn DiMartile and Mike Tighe discuss the challenges of building affordable housing in San Diego, California. They delve into the numbers and costs associated with constructing affordable housing units, highlighting the reasons why it is difficult for developers to build such projects without government intervention. The hosts also explore the role of tax incentives and subsidies in making affordable housing projects financially viable. Through their insightful analysis, they shed light on the complexities of the affordable housing issue and provide valuable perspectives on the topic.

Some key takeways from this episode:

• Building affordable housing is challenging due to high construction costs, expensive land prices, and the need to charge higher rents to cover expenses and generate profits

• Developers often choose to build higher-end projects in more desirable neighborhoods to maximize their returns, rather than focusing on affordable housing

• Government intervention, such as tax incentives and subsidies, is necessary to bridge the financial gap and make affordable housing projects feasible

• Subsidies can be viewed as investments by the government, as they not only provide housing for low-income individuals but also contribute to the stability and growth of the local economy

• The government can recoup its investment through tax revenue generated by the affordable housing units over time

Learn more about Mike and Shawn:

• Shawn: www.investorshawn.com
• Mike: www.investormike.com
• Website: www.takeoffcapital.com