RE Journals, a leading publisher in commercial real estate news published an article on September 16, 2024 quoting Aeon’s CEO, Dr. Eric Anthony Johnson. The article is entitled, “So many hurdles: Lack of affordable housing remains a serious problem for Twin Cities renters, buyers”.
The article discusses the urgent issue of affordable housing in the Twin Cities, where both renters and potential homebuyers face significant challenges. Rising single-family home prices and increased mortgage interest rates have intensified the housing crisis, making affordable options scarce. Anne Mavity, Executive Director of Minnesota Housing Partnership, emphasizes that 83% of low-income residents in the area are paying more for housing than they can afford, leading to broader social and economic issues.
Developers struggle to create affordable housing due to high construction costs and community opposition, or NIMBYism, which often prevents new projects from moving forward. Mavity argues that government assistance is essential to bridge the housing gap.
Dr. Eric Anthony Johnson, CEO of Aeon, highlights the disconnect between incomes and housing costs, noting that the region needs around 38,000 additional affordable units by 2030. He states, “We have to break free of this zero-sum-game thought pattern so that we can work together in a more creative way,” emphasizing the importance of collaboration among developers, communities, and government entities. Johnson underscores the critical need for solutions that prioritize affordable housing in the Twin Cities.
