Whether Affordable Housing Policy Should Be Continued

Whether the Affordable Housing Policy should be Continued
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Chapter Summary
Housing is a major problem that affects the majority of the United States families especially the one living in urban areas. The cost of rental houses is increasing every day due to the increasing population as people move to towns and cities for various reasons. For this reason, the federal government has initiated programs on provision of affordable housing through the Affordable Housing Policy which aims to provide millions of United States citizens with houses they are capable of paying without much struggle. This policy has significant impacts on the citizens as well as the real estate companies as they take initiatives of running the program throughout the country. A good example of a private real estate company that has been experiencing high returns on the provision of affordable housing and housing facilities in the United States is the Summerlin Development in Las Vegas, Nevada. Various factors need to be considered before venturing into the deal to avoid future losses in the real estate field. Despite benefiting the members of the public, the real estate companies need to make profits from the initiated projects. These companies are directly involved in the construction of houses and the provision of land for the project. A major factor to consider as a company is the returns on investment and the viability and sustainability of the project. Different sources as used in this research indicate that the provision of affordable houses in a viable project that needs to be initiated across the country.
The objective of the Research
This research aims at providing a relevant argument on whether the affordable housing policy should continue. The research focuses on the impact of the policy to the citizens as well as how the project is likely to influence the real estate industry. At the end of the research, the paper should be able to define the impacts of affordable housing policy on the housing industry and conclude on whether the federal government should continue with the initiative.
Introduction
The larger population in the United States experiences difficulties in finding a conducive place to live that falls within their budget around the neighborhood they have been living for years. The problem is getting worse over time as the population increases and the house owners continue to increase the cost of renting thus making housing a major challenge in America. Affordable housing is defined with reference to the income of an individual thus defining your ability to pay rent. According to the general rule of thumb, rent should go at most 30 percent of a person’s salary (Madhyam, 2019). However, many people end up spending more than this even up to 50 percent of the salary on the rent due to unavailability of affordable houses especially in towns and urban areas. The formulation and implementation of affordable housing have more significant impacts in providing rental houses to the citizens and relatively lower prices. The policy also has a greater impact on the real estate companies as they target to invest in the project for the provision of affordable houses as discussed herein.<...