Factors That Affect the Affordability of Housing

In the U.S., house pricing has only gone up in the past decade. Average citizens are not the only ones affected by this but also real estate investors. Moreover, the ongoing pandemic and the supply chain crisis have pushed the cost of housing and infrastructure development higher. Likewise, we discuss the factors that affect the affordability of housing:

• Supply
  The largest factor influencing housing affordability is the number of houses that are available in a given market or the supply. In areas like the suburbs with fewer homes and less available land on the market, vendors can charge a higher price. Meanwhile, bidders at auctions push their budget limits higher.
• Planning Restrictions
  Another factor affecting affordable housing is planning restrictions in a particular area. When there are limits on building new houses, addressing the issue of supply becomes even more difficult.
• Population Growth
  Population growth is another factor relating to supply. The number of people who want to live in a given area also affects pricing. When an area is more desirable due to factors like proximity to transport connections and employment hubs, it becomes less affordable overall.
• Lending
  Lending for infrastructure finance also affects the cost of housing. Lower interest rates encourage banks to lend more money which drives up the cost of housing as buyers can pay more, while higher interest rates tend to result in lower house prices.

We at IIB DEVELOPMENT GROUP specialize in providing funding for the development of infrastructure. In addition to providing financial resources to businesses, our projects finance worldwide as we provide financial resources to countries across the globe as well. Reach out to us to learn more about our projects and what we do.