When 1 out of every 2 renters in the nation earn less than $35,000 per year, the production of rental units continues to target the upper end of the market.  Additionally, for the first time in the last quarter, supply of rental units (coming to market or building permits) has exceed the 20 year average of unit delivery.  The question is – how does this supply curve match up with the demand curve?  In both rural and urban markets, we are seeing many rent projections targeted at the upper end market.  An in depth analysis of household demand (income qualified renters) paints a questionable proposition for these projects.  When the majority of renters in the market can only afford $600 per month, yet units are being provided at $1,000, the long term sustainability of that project does not look promising.  Another analysis – BLS data on median salaries – shows that the majority of renters in rural areas fall within the affordable to moderate income/rental guidelines.  Prairie Fire is in for the long haul – we own our projects long term.  As such, we make sure the demand curve is inelastic and sustainable. The data is out there.

ANNOUNCEMENTS

Prairie Fire to develop mixed-income workforce housing in Ottawa, Kansas using Housing Tax Credits, Housing Trust Fund and Moderate Income Housing Funds!

Prairie Fire Residences in Newton, Kansas is now leasing!  Contact manager.prairiefire@rentourspace.com for more information!

 

CONTACT

770 East 5th Street

Kansas City, MO 64106

816.686.2416

info@prairiefiredg.com