Housing redevelopment leads to healthier, happier neighborhoods,
as well as economic benefits — new report
CLEVELAND, OH, September 26, 2023 – Neighborhoods that see the redevelopment of rundown properties experience short and long-term social benefits, as well as economic ones, according to a new report published today.
‘Here Comes the Neighborhood: The Economic and Social Impacts of Private, Residential Real Estate Developers’ is published by Upright, a leading real estate development platform. Drawing on multiple authoritative industry and government data sources, as well as original research, the report shows:
- Development creates economic value: New analysis shows that the values of comparable neighboring residential properties increase by between 4.8%-13.0% when new housing developments are undertaken, outpacing local market growth;
- Development creates jobs: One new job is created for every two new home sales, and 0.75 jobs for every $100K invested in rehabbing;
- Development stimulates the local economy: Small businesses such as shops and cafes are more likely to locate in streets where they are neighbored by attractive residential properties, rather than vacant or rundown buildings;
- Development leads to health and happiness: As well as costing cities money and proving an eyesore, vacant and rundown properties increase crime rates, fire risk, and contribute to higher levels of anxiety among local residents; the enhanced visual amenity of a neighborhood may therefore be said to contribute to greater levels of health and happiness among local residents.
Upright CEO, Matt Rodak says: “I have long been convinced that local, private real estate developers play a vital role not just in our economy, but in the life of our nation, and its neighborhoods. This research shows that each new housing development or rehab brings long-term economic benefits, and may also make local residents happier and healthier. We are calling this ‘The Mister Rogers Effect’.”
Meeting the housing need
The report also highlights the role that the nation’s 50,000 private real estate developers have in helping to meet the demand for housing. According to various estimates, there is a national housing shortage of between 3.8M and 6.8M homes, with a gap between demand and supply that grows every year.
“Not only can the major house builders not meet that demand,” says Rodak, “They are generally not interested in redeveloping individual properties. That’s where private real estate developers come in. They redeveloped or built more than 800,000 properties last year; that’s 800,000 homes that would otherwise not exist, or be unfit for purpose. We should be doing all we can to make it as easy as possible for this nation’s army of real estate entrepreneurs to redevelop and build more homes like this.”
Upright, formerly known as Fund That Flip, was originally established as a means of enabling private real estate developers to access funding for their projects, and passive investors to enjoy the returns delivered by investing in residential real estate. The platform is now expanding to provide a comprehensive suite of services for active and passive investors alike, removing friction at every stage of the process, from finding investment properties, financing, construction and management, through to disposition.
The ‘Here Comes the Neighborhood’ report is available to download for free from upright.us/neighborhood.
Upright (formerly Fund That Flip and FlipperForce) is an award-winning fintech platform that provides real estate investors with software tools to help them scale their businesses, capital to help them grow their portfolios, and passive income opportunities for accredited investors, all under one roof. With offices in New York City and Cleveland, Ohio, the company helps restore communities across the United States through its network of experienced, dedicated real estate professionals backed by a diverse base of institutional and individual investors.