Why ULI members are uniquely positioned to be part of the solution.
The housing crisis in the United States has been worsened by the pandemic, persistent inflation, and the cost and availability of housing. At the same time, the number of individuals experiencing homelessness increased more than 3 percent nationally, with Los Angeles—which has one of the nation’s most constrained housing markets—at the epicenter of the crisis.
Housing-related factors, such as absolute rent levels and rental vacancy rates, are the greatest predictors of a region’s homelessness rate—not drug use, mental illness, poverty, or local political context. In the words of University of Washington assistant professor Gregg Colburn, “Homelessness is a housing problem.”
As leaders in land use, real estate, and commercial development, ULI members can counter homelessness and advance solutions that are cost-effective and rapidly deployable. Indeed, last summer, through the support of members led by Preston and Caroline Butcher, ULI launched its Homeless to Housed (H2H) program with the release of the Homeless to Housed report showcasing eight projects that illustrate how the industry can help. From anchor housing with wraparound services serving 1,200 people per day in San Antonio to innovative strategies to finance housing for previously unhoused individuals in garden-style apartments in Charlotte, developers are finding new ways to house individuals and families at scale and in ways that make financial sense.
H2H has its roots in a ULI Advisory Services panel held in late 2017, chaired by Rafael Cestero and Leigh Ferguson. That panel explored homelessness in Los Angeles and fostered additional outreach and engagement in the region as well as three local summits that further explored the issue.
H2H plans to expand the solutions library with more case studies in the future; infuse ULI’s key convenings with meaningful conversations about homelessness; and work with the Institute’s network of district and national councils by providing grants and staff support for a range of local technical assistance activities that address homelessness.
ULI’s homelessness efforts are aligned with a renewed national focus, from the Biden administration’s plans to reduce homelessness by 25 percent by 2025 to California Governor Gavin Newsom’s release of $1 billion in funding for tiny homes. Already progress can be seen, with the number of homeless veterans falling 11 percent since 2020, the largest reduction in five years. Even so, the real estate community, in partnership with others, has a significant role to play.
While government’s role in creating affordable housing is to create policies, provide services, and build the crucial political will that encourages and promotes development of more housing, moving from policy to buildout cannot be achieved without the private sector.
The industry’s moral imperative is clear, but support for efforts aimed at easing the homelessness crisis also makes good business sense. Here are just three ways getting involved in affordable housing will benefit your bottom line:
- Reputation in the community. Developing communities that house and offer supportive wraparound services to individuals raises the profile of the developer in the community as well as forges business connections with local leaders and entities, which can lead to other projects.
- Economic benefits. Building housing helps neighbors in need while lifting up local businesses and economies and helping them thrive.
- Enhanced financing options and property stability. Federal and local entities are increasingly rolling out incentives, programs, funding, and grants to help finance affordable housing projects that once may have been difficult to pencil out. Once the housing is delivered, high demand for lower-cost units ensures low vacancy rates and enhanced financial stability for pre-existing properties.
Now is the time to explore the role of commercial real estate in advancing real estate solutions to homelessness. You can join the conversation at several upcoming events, including the ULI Los Angeles Homelessness Summit on June 8; the ULI Building Healthy Places Book and Film Club virtual meeting this summer, during which participants will engage with Colburn, author of the book Homelessness Is a Housing Problem; and, as preamble to the 2023 ULI Fall Meeting in Los Angeles, ULI’s first-ever national Homeless to Housed Symposium, on October 30.
Addressing homelessness lies at the core of the Institute’s mission because it is vital to creating and sustaining healthy, inclusive communities. Advancing concrete and workable solutions will require the real estate industry and government to work together. However, as developers, builders, and placemakers, ULI members can play an outsized role—if not the biggest role—in meeting the immediate needs of individuals experiencing homelessness: a home.
WILLIAM ZEH HERBIG, AICP, is senior director of ULI’s Homeless to Housed program.
