In The News: A Senior Affordability Crisis Is Coming, And No One Can Make The Housing Math Work
Ray Kuniansky may be a developer now, but to explain the barrier to building affordable senior housing, he draws on his past life as a math teacher.
Each senior housing unit costs about $200K to build, he explains. But a one-bedroom rent for those who qualify for subsidized housing caps around $795 a month. With costs of $500 a month just to operate a unit, not including debt service, it is hard to make the arithmetic work out. The cost of building units isn’t bound by what federal subsidies pay out and is, in fact, only rising. In sum, the numbers are looking direr and direr for those developers who want to break into senior housing that won’t break the bank for residents.
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Source: BISNOW
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