Now, we all know that it’s love that transforms a house into a home or an apartment into a home. We cannot help with the love part because that is what you have to bring to the table. However, we can help with everything else.
As you probably already know, if you’re reading this website, if you’ve ever tried to apply to rent an apartment in the Bay Area, you probably had a tough time. This happens all over the country. As the economy continues to improve, one very “happy problem” that arises is the pricing pressure on rental properties.
The inflation of rental rates is no joke. Ever since 2008 when America was hit by a housing crisis that saw tons of people crushed by foreclosures, the housing market has basically raged back to life.
To solve this problem, we are working with local governmental units as well as nonprofits and other institutions and organizations to promote access. There are many ways to do this. We can use government tax policy, tax credits, or even straight up subsidies. But in addition to this, we also work with the private sector using market-driven forces.
We are a think tank that truly believes that effecting any sustainable positive social change must involve both market forces as well as government initiatives. Accordingly, we are working with local home builders to implement high efficiency housing designs.
Our hope is that by using such designs, these companies would be able to reduce the cost of each housing unit so much that, given the pressure of competition, they would end up passing the savings to their customers. The more their customers save, the more customers come back to them, and this gives them a tremendous competitive advantage.
The hope here is that this pricing signal on a downward trajectory then signals to other market players that they need to get efficient as well. We hope to trigger some sort of chain reaction downwards instead of what’s going on, which is upwards.
Not losing money
Now, keep in mind that just because these market players are selling housing units for lower prices, it does not necessarily mean that they are losing money. Please understand that we are giving them efficient ideas to reduce their costs. In other words, they’re making the same amount of money, but the per unit cost of the homes that they do manage to assemble are much lower than prevailing market rates.
By working on both ends of the candle, we hope to make significant strides in the struggle against ever rising housing costs in all of the United States.