2024 NHPF Industry Report

NHPF Industry Report

Innovations in Supply and Sustainability

“We face the dual challenges of affordable housing and making sure that all housing—new and existing—is of a quality that reduces energy, can withstand future climate effects, and will physically serve all households. Technology has stepped up, but we need innovations in our housing institutions to get that technology in the walls too.”

—CARLOS MARTÍN, DIRECTOR, REMODELING FUTURES PROGRAM, HARVARD UNIVERSITY JOINT CENTER FOR HOUSING STUDIES

According to the World Green Building Council (WGBC), buildings are responsible for approximately 39% of global carbon emissions. This includes ~ 28% from operational emissions (energy used for heating, cooling, and powering buildings) and ~ 11% from embodied carbon emissions associated with materials and construction processes. INNOVATIONS TO INCREASE HOUSING AND SUSTAINABILITY Historically, low and moderate income households along with marginalized households of color, have had limited housing options in terms of geography and affordability. These handicaps impact their daily lives via the negative effects of climate change, financial instability, and certain health outcomes. Housing has long been a defining factor separating the “haves” from the “have-nots.” From this premise of overcoming the challenges to boosting the supply of quality affordable housing for those in need and improving sustainability, survey-takers reported the following. Modular or component-based construction is emerging as a leading innovation in the affordable housing sector. The advantages are clear: modular construction is faster, more cost-effective, and allows for greater quality control compared to traditional building methods. It also contributes to environmental sustainability by reducing waste and promoting energy efficiency aimed at combatting the effects of climate change on affordable housing. Reforming zoning laws is another critical area of focus. Inclusionary zoning policies, which require developers to include a percentage of affordable units in new residential developments, have been successfully implemented in cities like New York, San Francisco, and Boston. Similarly, upzoning, which allows for higher-density development, has been

Innovations to Increase Sustainability & Environmental Responsibility Question: Affordable housing developers often struggle to build sustainably while keeping costs low. Please rank the following innovations based on their potential to increase sustainability and environmental responsibility where “1” is most effective and “5” is least effective. Base: Total Sample, (n=215) / JASPER COLIN 1 2 3 4 5

13%

18%

17%

19%

19%

19%

24%

22%

23%

27%

20%

15%

19%

18%

21%

20%

23%

19%

24%

20%

20%

22%

17%

18%

23%

Modular Construction

Community Land Trusts

Mixed-Use Development

Passive House Design

Net-Zero Energy Housing

6 • THE NHP FOUNDATION 2024 SYMPOSIUM: INDUSTRY REPORT

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