Income Stagnation Holding Down Growth

NEWPORT BEACH, CA—Income has not moved for the average American family in 35 years, which is holding down growth and increasing the need for affordable housing, according to speakers at the 'Best of the West' real estate capital conference held at the Fairmont Newport Beach here last week. Bellwether Enterprise Real Estate Capital LLC, the commercial and mortgage banking subsidiary of Enterprise Community Investment Inc., hosted the event, which attracted commercial real estate property owners, developers and investors.

According to Andrew Nelson, chief economist, USA, at Colliers International, “The economy is good, especially for commercial real estate in the West and throughout the country. With low interest rates, strong housing markets, consumer confidence that is up and oil prices that are down, it all translates into strong demand for products and tells us we are trending in the right direction.”

Nelson addressed the need for affordable housing, saying, “Income has not moved for the average American family in 35 years, which is holding down long-term growth.” Affordable housing and preservation of aging housing are a big concern, as well as infrastructure. John Monahan, senior managing director at John Hancock Real Estate Finance, said, “We are a first-world country heading into third-world status, and I fear it will take a catastrophic event before anyone takes the infrastructure problem seriously.”

Ned Huffman, president of Bellwether Enterprise, said his firm is on a mission to help solve the affordable-housing crisis by providing financing for new affordable-housing projects and refurbishing older multifamily structures. “With our newly expanded affordable-housing group and regional offices such as our new Irvine office, we hope to serve as a valuable resource in both affordable and conventional lending throughout the country. Our goal is to be the most-respective, mission-oriented commercial mortgage banking company in the country.”