Aligning Incentives for Affordable Housing | John Burns Real Estate Consulting

Aligning Incentives for Affordable Housing



There is no arguing homelessness is a widespread issue. It is not limited to just urban markets, nor is it limited to those we see on the streets. Homelessness affects the workforce: our teachers and paramedics, our servers and service workers. Realizing traditional approaches to creating affordable housing were inefficient, Atticus LeBlanc founded PadSplit. Keep reading below to see how PadSplit acts as a creative solution to the affordable housing shortage.

The Problem

  • Massive housing gap. Millions of working people earned incomes below the threshold to afford traditional housing options.
  • It is not just the monthly rent. Adding to the financial burden are security deposits, utilities, and furniture.
  • Traditional affordable housing solutions, such as subsidized housing, are often inefficient. Building new apartments at $200,000 per door doesn’t always pencil at affordable rental rates, even with subsidies.

A Creative Solution

  • PadSplit is a private equivalent of the Housing Choice Voucher Program and financially incentivizes homeowners to rent out spare rooms in their home.
  • PadSplit uses existing housing stock to increase the supply of affordable housing. This is far more efficient than constructing new housing.
  • PadSplit is extremely affordable. In some cases, PadSplit options are available at less than half the cost of a one-bedroom apartment in the same market.

Looking Forward

  • Atticus is developing PadSplit as a technology company so that its processes can easily be rolled out by anyone anywhere.
  • The need is everywhere, not just major urban markets. So, while PadSplit is currently active in Atlanta, New Orleans, Houston, Tampa, and Richmond, they are in the process of expanding into additional markets, potentially including rural areas.


For a full transcript of this episode, click here.

 

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