Bruce Gunter, founder and president of Progressive Redevelopment Inc., wrote a thoughtful guest column in Maria Saporta’s Saporta Report this month, summarizing some of the issues affecting the affordable housing market in Metro Atlanta in the wake of the recession. An excerpt from the blog is below. Visit the Saporta Report website to view the full article.
Excerpt from Saporta Report:
“ Eventually, Atlanta will emerge from this devastating recession, but it will not look the same when it does. Now retrenching from an over-fed housing sector, the new economic and geographic landscape will impact many housing-related business sectors, entire neighborhoods, thousands of families, and land development patterns.
In this larger context, what will become of affordable housing in Atlanta?
First, our local markets are being shaped by national economic and financial factors. Homeownership rates will decline significantly, despite record low mortgage interest rates and more reasonable home prices.
Credit standards are tightening for all borrowers, and the reform of Fannie Mae and Freddie Mac, when it occurs, will almost surely result in a pull-back of these government sponsored enterprises from subsidizing anywhere near the level of affordable housing they did in the past…”
View full article here