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Negocios Now - Latinos in Real Estate

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Page 5 of 31 6 Abril 2023 By Angela Azmitia, from Related Midwest R econciling increased urba- nization with the growing unaffordability of city living is one of the biggest cha- llenges the commercial real esta- te industry faces. Not providing enough quality, widespread affor- dable housing and community resources in economically diver- se locations will mean unattaina- ble housing for many, an increase in homelessness, gentrification- related displacement, and limi- ted upward mobility. As the affordable leasing direc- tor for related management, I see firsthand the repercussions of our city's limited options. Individuals and families wait as long as 20 years for subsidized housing and tax credit options with narrow bands of afforda- bility that make it difficult for individuals to qualify. According to the National Low Income Housing Coalition, in the US alone there is a current shortage of more than 7 million homes for our nation's over 11 million extremely low-income families. Assuming the move towards cities will continue due to economic, climate, and conflict motivations, 80–90% of the world's population will be living in, or in direct proximity to, urban centers by 2100. A consequence of increased urbanization and sustained income inequality means there will be more demand for diverse housing and household needs — demands that the CRE industry may not be ready to meet. The development of residential real estate as a mainstream inves- tment sector has had a direct impact on the global housing market causing inflated house prices, affordable housing shor- tages, inflexible housing stock, and underserved communities in need of economic investment. Who is responsible for provi- ding the diverse array of housing options needed — our public or private sectors? What should we, as an industry, be lobbying for? How can we build better investments to serve our com- munities? How does CRE, as an industry, further its efforts to create positive change? Below are examples of what it would look like to build community needs into our future develop- ment strategies. Integrate principles of good density into future develop- ments, and establish mixed-use, well-connected environments with high-quality placemaking. Revitalize existing urban cen- ters to offer supportive servi- ces (financial literacy training, access to healthy food, gyms, etc.) with input from locals and community leaders. Incorporate rent-controlled and privately funded subsidies into mixed-income property metrics that can target low-inco- me households relative to the federal poverty threshold. Attract impact investors loo- king for measurable economic returns by investing in social impact methodology. Lobby to incentivize cons- truction of affordable housing and rezoning for multi-family properties in areas where AMI is over 100%. Increase development of SRO housing in areas that can pro- vide economic mobility to resi- dents. Set goals as an industry to bridge cross-functional gaps between public and private sec- tors to make sure housing needs are being met. Huge challenge for commercial real estate industry El Especial | Latinos in Real Estate Angela Azmitia

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