Community Housing Services

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 6,500 community housing providers in the US offer emergency and transitional housing. Firms may also subsidize housing using existing homes, apartments, hotels, or motels. The industry includes organizations that provide low-cost housing in partnership with the homeowner who assists in construction or repair of a home (Habitat for Humanity) and that repair homes for the elderly or disabled homeowners.

Dependence on Government Funding

The community housing industry is dependent on government funding, which accounts for about 60% of social assistance (over 40% of total revenue).

Shift to Permanent Housing

Government policy that prioritizes ending homelessness quickly has created more permanent housing solutions for the homeless.

Industry size & Structure

The average community housing provider employs between 15 and 23 workers and generates between $1.7 million and $2 million annually.

    • The community housing industry consists of about 6,500 organizations that employ about 128,000 workers and generate almost $13 billion annually. Temporary shelters account for 48% of establishments and 44% of revenue. Other types of community housing account for 52% of establishments and 56% of revenue.
    • The industry is highly fragmented; the top 50 companies account for between 25.8% and 29.2% of industry revenue.
    • Most organizations are small and independent and operate at a local level. National organizations like Habitat for Humanity are the exception. Almost all organizations (over 95%) are tax-exempt.
    • The community housing industry is part of a complex network of emergency shelters, transitional housing, permanent supportive housing, and public housing.
    • US cities with the highest rates of homelessness include Washington DC, Boston, New York, San Francisco, and Santa Rosa, CA.
                                    Industry Forecast
                                    Community Housing Services Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    Jun 15, 2022 - Relief Burden Shifts To States
                                    • Emergency rental assistance centers are closing nationwide as the remaining short-term federal aid is spent. The closures leave states scrambling to protect vulnerable renters facing sharp housing cost spikes. At least 150 emergency aid centers were in the process of closing or were no longer accepting applications as of mid-June, said Haydar Kurban, a professor of economics and director at the Center of Excellence in Housing and Urban Research and Policy at Howard University. The $47 billion allocated by the federal government for rental assistance programs through the 2020 Covid relief package and the 2021 American Rescue Plan have largely been spent or returned to the US Treasury Department. The gap forces states to allocate more of their own money or watch the housing crisis deepen.
                                    • One of the biggest obstacles to increasing housing affordability by creating more living spaces is zoning regulations, according to many experts. Common restrictions include limiting a building’s height, having strict parking requirements or outright bans on multifamily housing. “There is a significant cohort of municipalities throughout the United States that use zoning as a tool to essentially say, ‘we want to keep this community physically the same,’ which means all single-family homes,” said Yonah Freemark, a researcher at the Urban Institute. The Biden administration hopes to boost affordability within five years through a plan to provide grant money to localities that reform zoning regulations to incentivize more development of multifamily or high-density housing.
                                    • Experts and politicians predicted that evictions would soar when the Supreme Court struck down the Centers for Disease Control and Prevention's federal eviction moratorium in August 2021, but US eviction filings remained well below the historical average through 2021, according to the White House and housing experts. Evictions are at 60% of the historical average in early 2022, according to Peter Hepburn, Princeton Eviction Lab statistician and quantitative analyst. Hepburn credits the influx of state and federal resources and ramped up legal assistance implemented during the coronavirus pandemic for the downward trend. The US Congress allocated $46 billion in rental assistance during the coronavirus pandemic. Just $1.5 billion was earmarked for renters during the Great Recession of 2008.
                                    • Housing advocates in New York City say that they’re seeing a wave of tenants, often foreign-born people in low-income neighborhoods, being forced from their homes. Eviction filings in several Texas cities are among the highest in the nation, according to the Texas Tribune newspaper. “We're reaching a critical moment for low-income people who may be struggling to stay in their homes while many of the safeguards are collapsing at the same moment,” said Ben Martin, a senior research analyst for the nonprofit advocacy group Texas Housers.
                                    • All of the $46 billion allocated by Congress to prevent evictions during the coronavirus pandemic is expected to have been disbursed by mid-2022. Community housing services may see a significant demand increase if other funding sources aren’t found.
                                    • Some housing advocates say that evictions are increasing in many parts of the country after remaining relatively low during the first few months after the termination of the federal eviction ban in August 2021. Evictions remain below pre-pandemic levels due to the infusion of federal rental assistance and other pandemic-related assistance like expanded child tax credit payments, but some of those benefits are expected to end in early 2022. The increase is due in part to courts catching up on the backlog of eviction cases. Advocates say the upsurge also shows the limits of federal emergency rental assistance in places where distribution remains slow and tenant protections are weak. Rising housing prices in many markets also are playing a role.
                                    • Groups that build or repair low cost housing are struggling to deal with rising construction material prices. The construction manager for Charleston (SC) Habitat for Humanity said that the organization used to get one sheet of oriented strand board plywood for just under $8, but now one sheet costs between $38 and $42. Vinyl siding that once cost $3,000 per house now costs between $6,000-$7,000 per house.
                                    • It typically costs Habitat for Humanity of Greater Jonesboro, AR, $100,000 to build a home, but it now costs $120,000, according to executive director Micheal Sullivan.
                                    • The US Congress approved $25 billion of emergency rental assistance in December 2020 and another $21.5 billion in March 2021. Some landlords have declined to participate, however, because they may have more to gain by forcing out tenants in arrears and attracting those better able to pay, according to The New York Times.
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