Many people focus on the investing aspect when talking about the housing affordability crisis. Even though this is definitely a topic worth talking about, the problem goes far beyond this.
Much like many other issues on the macro level, it’s the poor that suffer the most.
By this, I don’t mean jobless or homeless people. Not at all.
I’m talking about families that should be able to afford a roof over their head. But the market keeps pushing them out. I mean this quite literally, as the crisis makes low-income families move further and further away.
You might be thinking, “That’s awful, but how is this making them poorer? Shouldn’t they have more money if they can find a more affordable home?”
That would be a good point, but think about where these people are moving to.
To find an affordable home, they have to go to less and less advantaged areas.
This means poorer education, fewer job opportunities, more commuting costs, and all kinds of other issues.
As the prices keep spiralling up, so does the income of poor families, only in the opposite direction.
While wealthy singles keep sitting in their four-bedroom homes, entire families can barely afford a place to stay. If this continues, the crisis will keep deepening this process of segregation.
The University of Melbourne, University of South Australia, and University of Adelaide joined forces in a study that explored the issue of unaffordable housing. They pointed to migrations as the single most important factor.
So where does this stop?
Are we going to keep letting the crisis push people out of their homes?
Here at Small Is the New Big, we definitely won’t.
Our goal is to use smarter investment strategies to help put a roof over people’s heads without burning a gaping hole in their pocket.
To do this, we need investors who are willing to think differently and employ a strategy in which everybody wins.
Would you like to know more? Click here for a FREE copy of our “National Report: High Yield Opportunities in Affordable Housing”.