Market Opportunity
The shortage of affordable housing in underserved communities is a pressing issue that affects the well-being and stability of countless individuals and families.
By directing our investments towards affordable housing, we aim to contribute significantly to alleviating the housing crisis and providing affordable living options for those in need. Athene’s view there are several economic drivers for increased affordable housing demand.
MILLENNIAL
DEMAND
65% of millennials are renting and targeting high-cost cities along with delaying major life events, elevating rental rates in traditionally more cost-effective surrounding areas, making rent for those in the 60-120% of Area Median Income (AMI) unaffordable.
COST TO
ACQUIRE
Inventory of Single-family homes remains below that of demand. Coupled with years of a low interest rate environment has pushed prices out of reach for millions of Americans, at least today. Down payments alone are more than many people in the 60-120% AMI can afford.
COST TO CONSTRUCT
Construction costs have continued to wreak havoc on construction. New construction isn’t keeping pace with demand, and those developing multifamily properties are focusing on Class A or subsidized housing, leaving a large population needing affordable housing, without any assistance.