Multifamily & Affordable Housing

The Need for Affordable Housing in Today’s Economy

As housing prices in Las Vegas and across the country continue to rise, the struggle of finding affordable housing is ever prominent. The United States Census Bureau displays the median household income: families earning $96,401, married-couple families earning $113,728, and nonfamily households earning $47,090.[1] This knowledge is important as the way people consider housing is based off their income and the pricing of these habitations. Accessible housing plays a key role in addressing economic challenges, especially in locations such as Las Vegas. Many families are now considering multigenerational housing as a way of reducing intergenerational poverty from inflated costs. More workforce housing and higher paying jobs are needed for the local economy to balance. When this happens, a diversified economy will boost due to the creation of newer jobs and more money spent on local communities from rent growth.[2]  With the need for affordable housing contractors, architects, investors, developers, and lenders need to work together to help a project pencil and contribute to the Las Vegas multifamily market.

Understanding House Affordability

According to the US Department of Housing and Urban Development (HUD), affordable housing is when all occupants are “paying no more than 30% of gross income for housing, including utilities.”[3] while those who spend more are considered cost burdened. Types of housing affordability include low-income housing, for individuals who earn “below 80% of the local area’s median income.” (AMI)[4] Often supported by nonprofit organizations or local governments. Additionally, workforce housing, particularly designed for families that “earn around 80% to 120% of the AMI”.[5] Suitable for families who earn more than low-income, but struggle on finding affordable housing. Market-rate housing is based off already existing market values and demand, often being out of reach due to income or housing pricing. However, multifamily housing is a way of being able to provide affordable and accessible housing to individuals, no matter what their income level.

Providing Income-Based and Mixed-Income Housing

As stated by CommonBond, compared to market-rate housing, affordable housing is determined by the income level of the residents that live around the area. [6] While typically also having  support such as nonprofit organizations or government subsidies. This is important as it gives low-income families the ability to afford a residence. According to the National Low Income Housing Coalition (NLIHC), there has been “a shortage of more than 7 million affordable homes for our nation’s 11 million-plus extremely low-income families.” [7] This housing gap has resulted in housing instability and homelessness in communities. In a way, this is why mixed-income projects exist. Multifamily investors and brokers are focusing on offering buildings that are affordable for individuals and families with different income levels, and multiple income streams. Through mixed-income and mixed-use housing, it can bring stability to a variety of families, being able to decrease the current housing gap [8] while still allowing the developer or owner to collect on the commercial mixed-use portion of the project at a leasable market rate.

The Versatility of Multifamily Housing

Multifamily housing is property that is designed for more than one housing unit. There are a variety of diverse property types for multifamily housing from duplexes, townhouses, apartment complexes, or semi-detached housing.[9] The most common type of multifamily housing are apartment complexes and duplexes, being types of residencies that can provide homes to singles, families, and multi-generational families. This makes them multi-age homes, being affordable to a variation of incomes. Spanning from boomers to millennials, etc., these multifamily homes can provide a residency for generations. This versatility also helps shape both investment sales and development leasing strategies, being able to bring long-term growth into the market by the variety multifamily housing can provide.

Residential vs. Commercial Use in Multifamily Properties

There are diverse ways a multifamily home can classify as: residential, commercial, or mixed-use. This classification depends on the number of units contained in these buildings. It is completely different from single family homes verses multifamily homes, having more than one unit. Multi-use residential units are buildings that typically contain two to four units that are primarily for individuals and families to live in. Mixed-use Commercial units, meanwhile, contain more than five units in a building, and has a mix of homes and businesses. However, the number of units in a building does not deter the possibility of a multifamily home serving as a dual purpose. This dual purpose, also called mixed-use, provides housing for both residents and businesses in the same building.[10]

Multifamily Homes Provide Affordable Housing

As affordable housing becomes a challenge in achieving, multifamily housing is a practical solution to this problem. With its versatility from diverse property types to providing a residency for families with varying income levels, it allows residents and even businesses to reach the path of housing affordability. Especially in locations such as Las Vegas, where housing is crucial for an increasing population. This brings the opportunity of delivering stability towards the generations through economic mobility and playing a critical role in reducing intergenerational poverty.

Planning for Multifamily & Affordable Housing

If you are in the beginning stages and planning for a multifamily or affordable housing project, we encourage your to reach out and learn how SCA Design can be of assistance from beginning stages of land selection and entitlements to rezoning, site fit, and design to maximize your site plan and amenities. We provide full design and construction documents for permitting and project construction. As well as the services you need to guide you in the right direction through construction completion. Reach out for more information.

Comprehensive Architectural Services

At SCA Design, we offer a full range of architectural and design services, including:

Commercial architecture – Office buildings, retail spaces, land development, urban infill
Multi-Family architecture – Affordable housing, worker housing, apartment housing, community centers
Residential architecture – Custom luxury homes and high-end residential projects, Casita Accessory Dwelling Unit (ADU)
Retail architecture – Ground-up, freestanding, gray shell and second generation
Casino & Hospitality design – Casinos, entertainment venues, and sports facilities
Restaurant design– Restaurant architecture, QSR, food court and coffee shop design
Warehouse architecture – Industrial, Manufacturing, and Warehouse Office
Interior Design – Thoughtful model home design, stunning interiors, space planning, blending aesthetics with functionality, inclusivity, tailored experiences, and technology.
Tenant improvements & renovations – Enhancing and repurposing existing spaces, façade, adaptive reuse
Master Planning & Entitlements – Concept design, programming, site evaluation, zoning variance, rezoning, special permitting and approvals, design review with AHJ
Self-certified Architect & Quick permit – CD Permit Set alternative to Building Department building plan review for code compliance*
Construction Services- Project management, construction management, bid and permit support.

We specialize in design-build, design-assist, and ground-up architectural design. Our firm also integrates ADA accessibility, LEED-certified sustainability, and green energy solutions to meet modern green building standards.

Start Your Project with SCA Design

Looking for experienced licensed architects in Nevada, Arizona, Utah, and Idaho? Let us bring your vision to life! Read more about the process here. Schedule a free consultation with our expert architects today! Call SCA Design at 702-719-2020.

 

Footnotes:

[1] https://data.census.gov/profile/United_States?g=010XX00US#income-and-poverty

[2] https://commonbond.org/economic-benefits-of-affordable-housing/

[3] https://www.nlc.org/article/2024/01/08/what-is-affordable-housing/

[4] https://bfpminc.com/affordable-housing-vs-low-income-housing/

[5] https://www.doorloop.com/definitions/workforce-housing

[6] https://commonbond.org/market-rate-housing-vs-affordable-housing/

[7] https://nlihc.org/explore-issues/why-we-care

[8] https://www.localhousingsolutions.org/refine/developing-mixed-income-housing/

[9] https://www.rocketmortgage.com/learn/what-is-a-multifamily-home

[10] https://www.mrisoftware.com/blog/is-multifamily-considered-commercial/

About the Author

My name is Gabby Bazan, I am a summer intern at SCA Design. I have had the opportunity to research and develop website blogs to inform potential clients about architecture-related topics. This process has strengthened my ability to create engaging content that resonates across generations. Throughout the internship, I contributed to Instagram content creation. I researched and gathered quality information to deliver thorough and informative content for readers. This experience has helped me deepen my knowledge about marketing. Additionally, I have gained valuable insight working in a professional environment. I reported to Ms. Nickel Lowman, Regional Marketing & Business Development Manager of SCA Design, an experienced team member within the architecture firm. For questions regarding content and Multifamily & Affordable Housing design capabilities, ask for Nickel Lowman.