As the economy is slumping, affordable housing cannot compete with market rates.
Silicon Valley is experiencing a rather odd phenomena: affordable housing is less affordable than market rate housing. "Rents in the region have plunged as the economy sagged, allowing some low-income renters to find deals nearly as good or better on the open market." Despite move-in bonuses, deposit waivers, and other incentives, developers of low-income housing are finding themselves with many empty units. " 'Three years ago, we'd open a new project and fill it in 30 days,' said Richard Warren, property management director for the Housing Authority of Santa Clara County. 'Now, it takes up to nine months or longer.' " Some officials are considering to reduce the amount of low-income housing until there is equilibrium.
Thanks to Adam Weiss
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