Affordable housing is in scarce supply in many urban areas – particularly in California. That’s why Governor Newsom just signed an executive order that aims to lower the startup costs for infill housing projects by cutting through the red tape.
The goal of the executive action – which was combined with a whopping $94 million in grants over 15 counties – aims to add 2.5 million new housing units to the state by 2030.
What is infill housing?
Essentially, it’s a real estate development strategy that aims to create new residential properties within previously developed urban (and sometimes suburban) areas – as opposed to using undeveloped land further away from a city. It often is used to reinvigorate “blighted” areas that suffered from changes in the urban landscape over time.
Infill housing offers sustainable urban growth by reducing urban sprawl, preserving existing green spaces and making efficient use of resources. It also provides convenience, since residents in the new spaces can benefit from existing urban infrastructures, like roads, public transportation and ease-of-access to shopping, restaurants, entertainment and medical facilities.
Many communities are recognizing the benefits of infill housing and are supportive of such developments. In that regard, they often favor zoning changes and even offer incentives to encourage developers and investors to make use of underused land.
Infill housing projects often – out of necessity – make use of smaller parcels of land, which allows for unique or creative architectural designs. That can attract buyers and renters who are weary of the typical “cookie-cutter” properties found in larger developments.
If you’re interested in investing in infill housing, it pays to make sure that you fully understand the real estate development process. Having all your contracts reviewed by a professional can make it easier to be secure in your investment strategy.