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Creating Sustainable and Affordable Housing Solutions
UPCOMING AFFORDABLE HOUSING PROJECTS IN KENYA
Affordable Housing, Our Key Business Sector
Affordable housing is part of Maylan’s real estate development, which is our core business because real estate is an important class of real asset assets. Real estate development drives economic growth, in addition to the agriculture and manufacturing sectors, which produce food and jobs, respectively, as other necessities.
Shortage of Affordable Housing in the US and Globally
We invest in affordable housing developments in the US and internationally in response to market demand, which has long exceeded supply, causing housing shortages globally. These shortages are due to construction of homes not keeping up with demand fueled by rapid urbanization and population growth, resulting in millions of people becoming homeless in most major cities worldwide.
Supply Has Not Kept Up with Demand
This massive housing deficit is a result of a high increase in demand for housing in large cities in recent years due to demographic shifts, population and economic growth, and low-interest rates. However, the supply of new homes has not kept up with such demand for decades, resulting in a record number of housing shortages, high prices in housing costs, increased homelessness, and other social and economic problems.
Shortage of Affordable Housing, A Global Crisis
Housing Shortage in the U.S.: 3.8 – 6.8 million Homes
In the US, the shortage of affordable housing has become a pressing concern affecting millions of Americans. According to the most recent estimates from Freddie Mac (June 2023), the US has a shortage of about 3.8 million housing units, both for-rent and for-sale, because there are not enough homes built to keep up with demand. The National Association of Realtors put the number of housing shortage to even a higher number, between 5.5 and 6.8 million units, with the gap between supply and demand widening every year (Jul 7, 2023).
California Needs to Build 3.5 million Homes by 2025 to Alleviate Its Housing Shortage
Housing shortage is most severe in California, causing house prices to become unaffordable for a large segment of the population. According to the Public Policy Institute of California (August 2023), the demand for housing would require supply of 3.5 million homes by 2025 to alleviate widespread homelessness and many socio-economic problems caused by the housing crisis.
High Home Prices and Living Costs Prompting California Exodus of More than 800,000
The high prices of homes in both renting and sales have caused Californians to spend 50% higher in median monthly housing cost than the average national median, and renters pay 44% above the average national median rent, even though California median household income is only 22 percent higher than the nationwide median. This high living cost is the main reason that prompted the current exodus in California, causing its population to drop 1.2% or more than 800,000 people between 2020 to 2023, and leaving the California’s total population to be just over 39 million people. However, despite the exodus, the housing shortage in California is so severe that it will need a long time for supply to meet demand.
Housing Crisis in Other Major Cities: San Antonio, Dallas, Houston, and Orlando
The housing shortage is also severe in 4 other metropolis cities, including San Antonio, Dallas, and Houston in Texas, and Orlando in Florida, according to a new Bank of America research. High population growth from an influx of new residents, a booming labor market, and a low housing inventory in these cities have contributed to a lack of housing, driving house prices in recent years to be far higher than usual. Compared to data from the same month in 2019, home prices in Orlando increased by 58%, and those in Dallas increased by about 49%.
Housing Shortage Outside of the U.S.
The US is not alone in facing the housing crisis. Many countries around the world also experience severe housing deficits due to a long-term insufficient supply of new homes to meet demand.
• United Kingdom: Shortage of Over 4.3 million Homes
According to the “Centre for Cities” in the UK, there is currently a shortage of 4.3 million homes in England. This housing shortage has become a housing crisis, as homelessness in England has increased by 165% since 2010, primarily because of the housing shortage.
• Canada: Shortage of Over 5.8 million Homes
Canada needs 5.8 million new homes by 2030 to solve the current housing crisis, according to the Canadian Mortgage and Housing Corporation (Jul 9, 2023). As a result, housing shortage has driven high cost of living in Canada, resulting in increased homelessness and social and economic problems.
• Brazil: Shortage of Over 6 million Homes
Brazil currently faces a shortage of more than 6 million homes. This severe housing deficit has resulted in 49% increase in 6 years in the homeless population in Brazil, from 138,332 in 2018 to 206,044 in 2023, according to the Brazilian Observatory of Public Policies with the Homeless Population.
• Germany: Shortage of over 700,000 Homes
According to a study by the Eduard Pestel Institute for Systems Research, Germany currently has a shortage more than 700,000 homes, especially in the affordable segment.
• Africa: Shortage of over 51 million Homes
In Africa, cities become new homes for over 40,000 people a day. However, Africa currently faces a shortfall of at least 51 million housing units, according to the latest statistics from the Centre for Affordable Housing Finance (CAHF) of Africa. The housing shortages in Africa's three most populated countries account for most of this shortfall, with Nigeria having a housing deficit of 28 million units, the Democratic Republic of Congo having a housing deficit of 3.9 million units (263,039 housing units per year), and South Africa having a housing deficit of 3.7 million units.
Creating Sustainable Affordable Housing Solutions
Turning Housing Crises into Investment Opportunities
We have the unique ability to turn affordable housing crises into attractive investment opportunities through sustainable infrastructure and housing development with curtailed modular construction solutions and industry experience in project finance and development.
Tailored Modular Construction Solutions
We build affordable housing with speed and efficiency, utilizing innovative solutions, advanced modular design and prefabrication, and resolving the supply shortage from the root cause to deliver quality and low-cost homes on schedule.
A Resilient and Experienced Team in Developing Countries
With industry experience in developing countries, we can navigate our work through challenging working environments lacking infrastructure, public services, frequent changes from evolving business laws, socio-economic problems, and impacts of climate change to deliver results.
Integrated Affordable Housing and Supporting Industries
We invest and build affordable housing developments as stand-alone projects or integrated with agriculture or manufacturing as supporting industries.
Private or PPP Affordable Housing Projects
We build affordable housing projects as wholly owned private projects or in collaboration with government under Public and Private Participation (PPP) arrangement.
