Nonprofits find upside of housing slowdown
March 4, 2008 – 11:52 amWhen I worked for a nonprofit affordable housing developer in San Francisco, I once had a conversation with a commercial broker who said, “Nonprofits tend to do better in slowdowns. They can compete for the land. In a rising market, they can’t compete as well.”
That’s been one of the issues in San Mateo County facing affordable housing developers. Developing anything costs a lot of money, so if land costs are going up, then it’s hard for nonprofits to compete. And today, the housing market has slowed down less here than in other regions of California, and the commercial market has been improving steadily, putting pressure on land costs in areas where a mix of uses are permitted, and offices could be developed.
This morning, National Public Radio ran a story about nonprofits finding opportunities in the downturn. One focus was on Habitat for Humanity in Modesto, an area that has been particularly hard hit by the mortgage meltdown. Here’s the link on NPR’s website:
Nonprofits Find Upside in Real Estate Slump
– Chris Mohr
