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 Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation 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

                                    Recent Developments

                                    Nov 14, 2022 - Cryptocurrency Exchange Bankruptcy Casts Shadow Over Crypto Philanthropy
                                    • The November Chapter 11 bankruptcy filing by cryptocurrency exchange giant FTX has cast doubt on the future of so-called crypto philanthropy. FTX founder Sam Bankman-Fried’s philanthropic fund has halted donations. Community housing providers receive revenue for providing shelter and assistance services primarily through private and government contributions, gifts, and grants. Bankman-Fried had emerged as a leader of what has been dubbed the "effective altruism" movement, which sought to reshape philanthropy. Crypto philanthropy has exploded over the last two years. Fidelity Charitable received around $330 million in cryptocurrency in 2021 up from $28 million in 2020. The Giving Block, a cryptocurrency donation platform, reported $69 million in total donation volume last year, an impressive 1,558% spike from 2020. Major exchanges like Coinbase and Binance launched their own philanthropy initiatives. Most nonprofits don’t keep the crypto they receive: They convert it to traditional currency.
                                    • US housing officials are turning to judges to slow the rise in evictions. The state supreme court in New Mexico, for example, launched an eviction diversion program, an effort to bring landlords and tenants together to resolve their disputes and to connect renters with resources to bring their accounts up to good standing. The Biden administration highlighted the New Mexico initiative during an August 2022 summit on evictions, an event focused specifically on judiciary actions to try to prevent evictions at the court level. An eviction diversion program in Philadelphia has led to settlement or resolution in 85% of the cases that have come up for mediation, reducing total evictions by more than two-thirds. At least 180 jurisdictions across 36 states have adopted some form of eviction diversion since President Biden took office, the White House says.
                                    • Inflation is blunting the impact of charitable giving, according to Giving USA. Consider a donor who gave $10,000 to their charity of choice in 2021. To have the same impact in 2022, that donor would have to give about $10,700. Donors are more likely to make that $10,000 gift again, however, which can blunt the impact they’re able to make on beneficiaries.
                                    • 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.
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