Oakland California is one of many US cities racing to provide thousands of new homes in a concerted affordable housing push. The city is currently on target of meeting its 2024 quota of 17,000 new homes. Unfortunately, affordable housing remains elusive. As a result, many city officials are concerned that the new developments have sidelined the indigent and vulnerable populations in need of affordable housing solutions.
The mayor of Oakland, Libby Schaaf has already issued building permits for more than 10,000 homes, but a meagre percentage of permits are designated for low income households. According to the City of Oakland, affordable housing development programs with nonprofit developers and for-profit developers are currently underway. The city is deeply invested in providing affordable housing to residents of Oakland, as evidenced by the construction of over 6000 units of housing since 1988. Affordable housing construction is facilitated by way of a loan program (Notice of Funding Availability). Affordable housing developers include a growing list of companies, trusts, and nonprofits expressly created for this purpose.
Luxury Living at Cut Rate Prices in the Greater Bay Area
One of the most exciting new initiatives in the greater Bay Area is spearheaded by leading real estate developer Danny Haber of oWOW. His company is involved in the construction, design, and development of adaptable spaces at affordable prices. These brand-new housing units are ideal for Bay Area residents who live and work at home. Unlike the majority of new housing projects in this neck of the woods, these brand-new units are affordably priced to tap into a niche section of the market. For example, 674 23rd Street features 24 units which were released within 4 weeks.
Owing to high demand and limited supply, affordable housing is being snapped up left, right, and center. This particular live and work building makes it easy for tenants to set up work from home businesses, reducing commute times andassociatedexpenses. This particular unit on 674 23rd Street features a sky deck, expensive courtyard, and a roof deck. The residents are locals in the area, comprising individuals, business associates, and families. The tenants supplement their income with many different side jobs, making for a thriving community-style environment. The objective of affordable housing developments like this one is to facilitate high-end products at the best price point possible.
The story of 674 23rd Street is an interesting one for those who have been following the work of oWOW. This particular tenement was vacant for 5 years, following a fire in a neighboring building. Since this structure was red-tagged, the owner of the building decided to sell to oWOW. The design and development teams at oWOW wasted no time getting to work, with the construction of MacroUnits. These trendy apartments are highly desirable, luxurious, and affordable. With all the apartments in the building renovated, remodeled, and ready, tenants quickly moved in and rented all spaces.
Rental Trends Across the United States
The World Property Journal recently published a report which indicates that housing rents have dropped for the first time in 2 years across the US. Now, average rentals have been reduced to $1471 per month (Yardi Matrix). Prices have declined in 56% of big cities, and 59% of small cities. Leading the charge as the most expensive rental market across the US is Manhattan with an average rental price of $4,336. LA apartments average $2,556 per month, and Washington DC apartments rent at an average of $2,232 per month.
In the San Francisco Bay area, rentals dropped by 0.1% and are now averaging $3,703 per month. Thanks to the ongoing efforts of affordable housing developers like oWOW in metropolitan areas like the greater San Francisco Bay Area, trends are slowly reflecting a decrease in rental prices. In the case of oWOW, decreased rental prices are possible thanks to repeatable designs that can be fully customized in the process.