The Rent Roll with Jay Parsons EP#76 Nick Andersen | Affordable Housing Isn't What You Think
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Mar 19, 2026 Nick Andersen, President of Development at Dominium and a longtime LIHTC developer, demystifies affordable housing. He tackles myths about residents and buildings. Conversations cover why LIHTC rents can outpace market rents, how construction and unit mix differ, design and durability for families, and regulatory complexity that drives costs.
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Rental Affordability Is Deeply Bifurcated
- Rental affordability is bifurcated with deepest needs concentrated at the lowest incomes, not evenly across renters.
- Harvard shows households under $30k spend >80% of income on rent, while those over $75k spend <20%, revealing polarized demand.
High Income Renters Drive Net New Demand
- Most net new renter demand is driven by higher-income households, not low-income groups.
- Since 2014, Harvard finds ~4 million net new renters earning ≥$75k, and Class A properties captured the bulk of recent absorption.
LIHTC Max Rents Can Exceed Market Rents
- In many high-supply markets LIHTC maximum rents (60% AMI) now exceed average effective market rents after concessions.
- Markets like Austin and Raleigh show 60% AMI rents 30–40% above prevailing average market rents, shrinking LIHTC advantage.