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Oct 21

Gandolf’s Target Market Is Growing Fast

The ever-increasing need for affordable housing in America has created a strong demand for both family and senior independent-living housing.

Affordable housing is especially needed for “baby-boomers” who are rapidly approaching retirement age. Gandolf understands this niche market.  Demand studies generated by local and regional governments throughout the country repeatedly indicate a severe shortage of quality, affordable housing to satisfy existing demand by seniors for affordable housing.
Affordable Housing
The typical Gandolf  senior resident earns 60% or less of the area average household income – often significantly less than 60%.  The typical Gandolf senior resident will spend between thirty and forty percent (30% – 40%) of household income on rent and utilities.  The typical annual household income for a senior  ranges from  $15,000 to $35,000.  These are independent senior citizens who are retired, live on social security, who may have a small pension and limited assets, but are healthy and want to live independently.   They are not yet in need of congregate or managed care.

The need for low to moderate income family housing is also well documented.  Many communities across the country are facing barriers to economic development because there is insufficient affordable housing for families earning moderate incomes.  Typically, these families are spending from forty to fifty percent (40% – 50%) of their income for housing.  The typical Gandolf  family will have an annual income from $18,000 to $35,000.  They may be employed full time, many with two adult workers paying taxes and supporting a family.

Finally, the supply of affordable housing is shrinking due to market rate conversions of existing affordable housing.  Many providers of affordable housing, who used low interest rate HUD financing, have been exiting the affordable housing market and converting their projects to market rates.   This is a result of expiring obligations to provide units at below market rate under the HUD financing program and the strength of the rental market.

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