Affordable Upstate News & Blog

Vista West III answers key questions in the local affordable housing

Thu, 23 Apr 2026 17:37:44 GMT

A brilliant day for affordable housing

Two former outdated apartment complexes off White Horse Road officially started a new chapter Thursday morning as community members welcomed 38 new affordable units at Vista West III.

The ceremony yesterday was about more than bricks and mortar, said Mario Brown, CEO of Affordable Upstate, who owns Vista West III and oversaw the redevelopment of the property with support from Lowe’s.

“This started with a vision to change how people look at affordable housing,” Brown said. “For too long, our community has accepted substandard housing as the norm. That is changing. We are leading that change.”

This was a project that started in July 2024 when Affordable Upstate purchased a two-story building at 100 Lily Street that had 14 units, and an L-shaped, two-story structure that had 24 at 2001 West Parker Road .

The goal was to restore them and combine them into one community instead of demolishing the units and building something new, and much more expensive for residents. This was the company’s third acquisition on Lily Street and gives them a significant competitive advantage, with the entire Vista West portfolio on Lily Street and West Parker Road being 160 units.

“The key thing is stability. This is the front door to Berea,” Brown explained. “Many times, apartments such as these are bulldozed and then something new comes and creates gentrification. We didn’t do that here. We invested in the actual communities to keep them affordable.”

Vista West III underwent a full “gut” renovation by essentially turning a tired 1970s-era complex into a “like-new” community, Brown said.

Everything from the plumbing and electrical systems to the windows and fixtures were replaced or upgraded.

The renovation includes interiors (new appliances, finishes, and energy-efficient systems), improved insulation and windows for lower utility costs, repaired structure and roofing, refreshed exteriors and landscaping, and added amenities for safety and comfort. By upgrading all 38 units at once (rather than a building-half at a time), the project also gained efficiency and presented a fully improved community.

Affordable Upstate partnered with Southeast Affordable Housing Administration (SAHA), a non-profit organization that works and educates third-party for-profit owners on affordable housing incentives, to subsidize the relocation of residents to nearby Affordable Upstate assets while Vista West III was refurbished. SAHA provided moving expenses as well as subsidizing the rents of the existing residents.

Much of this story has been captured in a documentary that will come out in the coming months.

“Vista West III exemplifies how thoughtful apartment renovations can preserve affordable housing units in an appreciating market,” said Delores Brown, Executive Director of SAHA. “Berea is a submarket that has historically been one of Greenville’s affordable areas and this project prevents the loss of 38 affordable homes and sets a standard for rehabilitating aging apartments without losing sight of the existing residents. It’s a win-win for the neighborhood.”

In addition, Affordable Upstate worked with NOAH Property Management, which is an economically mobility-driven property management company, to help place residents’ economic health at heart of the project. The organization does things such as reporting all positive payments by residents to credit bureaus thus increasing their credit score. It also offers a deposit alternative that gives owners more coverage than a traditional deposit and allows residents, often credit challenged, from having to produce first and last month’s rent.

“This is a brand-new complex in almost every way possible,” said Chris Cloud, CEO of NOAH Property Management . “Most typical rehabs only do superficial upgrades, whereas here everything is brand new.”

About Affordable Upstate:

Affordable Upstate is a real estate investment firm focused on redeveloping and redefining naturally occurring affordable housing in the Upstate of South Carolina. Since 2017 they have placed over $50 million of investor equity into socially responsible, environmentally enhanced workforce housing assets, resulting in a diverse and thriving portfolio with over 1,450 apartment units that satisfy the expectations of residents, investors, and communities. Learn more at Affordable Upstate.

Affordable Upstate wins Chamber honor

Wed, 15 Apr 2026 14:27:54 GMT

Affordable Upstate named Greenville Chamber Small Business of the Month

GREENVILLE, SC – A company that has helped thousands of Upstate families find affordable apartments has been named the Greenville Chamber Small Business of the Month for April.

Affordable Upstate was founded in 2017 with a focus on providing affordable housing that surpasses typical market standards.

A real estate investment firm focused on redeveloping and redefining naturally occurring affordable housing in the Upstate of South Carolina, the company’s foundation reflects a collaborative effort rooted in leadership, community insight, and a commitment to a people-centric approach to real estate investing.

Affordable Upstate had placed more than $50 million of investor equity into socially responsible, environmentally enhanced workforce housing assets, resulting in a diverse and thriving portfolio with more than 1,450 apartment units that satisfy the expectations of residents, investors, and communities.

Led by CEO Mario Brown, Affordable Upstate has helped change the way people in the region look at affordable housing. They aim to identify assets in markets with strong multifamily fundamentals, employment growth, population growth and other key demand drivers. All the properties they acquire possess value-add characteristics that include the ability to reposition the asset through capital improvements and upgrades, renovating the interior units, improving operations, decreasing expenses and creating other revenue-generating projects.

“Our mission is to modernize and preserve naturally occurring affordable housing in the Upstate of South Carolina by investing in communities that are as equally fulfilling for our residents as they are strategic for our investors,” Brown said.

 About Affordable Upstate:

Reframing Affordability: How Affordable Upstate Is Quietly Reshaping Greenville’s Housing Future

Mon, 06 Apr 2026 17:21:16 GMT

Affordable Upstate has demonstrated that affordability and scale are not mutually exclusive. But our true impact lies less in volume and more in strategy.

The Upstate of South Carolina is one of the Southeast’s fastest-growing economic hubs.

But with that growth has come a familiar and pressing challenge: housing affordability. Rising rents, population inflows, and a widening gap between wages and housing costs have placed increasing pressure on workforce households. Within this context, Affordable Upstate has positioned itself not simply as a real estate firm, but as a catalytic force redefining how communities think about housing.

We founded Affordable Upstate in 2017 in direct response to Greenville County’s affordability crisis. Affordable Upstate represents a new model of mission-driven real estate investment. Our focus is on “naturally occurring affordable housing” (NOAH). These are existing properties that can be preserved and improved without displacing residents. It signals a shift away from traditional development approaches that often prioritize luxury inventory over accessibility.

The firm’s measurable footprint is significant. With more than 1,450 units across the Upstate and over $160 million in assets, Affordable Upstate has demonstrated that affordability and scale are not mutually exclusive. But our true impact lies less in volume and more in strategy.

At its core, Affordable Upstate’s model addresses a critical gap in the housing ecosystem: the “missing middle.” By revitalizing aging multifamily properties, we preserve affordability while elevating living standards. Residents benefit from modernized, energy-efficient housing without the cost burdens typically associated with new construction. This approach not only stabilizes neighborhoods but also mitigates the displacement that often accompanies urban revitalization.

Equally important is our broader view of housing as infrastructure for economic mobility. Through partnerships with property managers and community organizations, Affordable Upstate has added benefits such as flexible rent payments, reduced upfront costs, and credit reporting for tenants. These initiatives help residents build financial stability by transforming housing from a fixed expense into a platform for upward mobility.

This philosophy reflects a deeper understanding of housing’s role in regional prosperity. Affordable housing is not merely a social good; it is an economic imperative. By enabling workers such as teachers, service employees, and healthcare staff to live within the communities they serve, Affordable Upstate supports labor market stability and local business ecosystems. The firm’s redevelopment projects also generate construction activity and stimulate surrounding commerce, creating a ripple effect that extends beyond individual properties.

Moreover, Affordable Upstate’s emphasis on sustainability introduces a forward-looking dimension to its impact. By integrating energy-efficient systems and environmentally conscious design, we combine affordability with long-term cost savings and environmental stewardship. In a region experiencing rapid growth, this dual focus is critical to ensuring that development remains both inclusive and resilient.

However, the organization’s influence also raises important questions for the Greenville area’s future. As demand continues to outpace supply, can preservation-focused models scale quickly enough to meet regional needs? And how can public and private sectors collaborate to amplify these efforts? Affordable Upstate’s success underscores the importance of cross-sector partnerships, but it also highlights the limits of relying solely on market-driven solutions.

Ultimately, Affordable Upstate’s greatest contribution may be its reframing of the housing conversation. By proving that affordability can coexist with quality, profitability, and community impact, the firm challenges long-held assumptions about what workforce housing should look like.

In a region defined by growth, Affordable Upstate offers a compelling blueprint: one where development is not just about building units, but about building opportunity.

An Updated Look at Greenville’s “Missing Middle” Housing

Thu, 26 Mar 2026 20:12:57 GMT

In Greenville City planning discussions in early 2026 , “missing middle” housing was a major focus for leadership and council members.

For many Greenville residents, housing affordability has become one of the most pressing challenges of the past decade.

The surge in people moving here coupled with new housing construction lagging has created the current environment of drastically rising costs to live with little end in sight.

In Greenville City planning discussions in early 2026 , “ missing middle ” housing was a major focus for leadership and council members. During the annual City Council retreat, planners and council members emphasized the importance of creating housing types between traditional single-family homes and large multi-unit apartment buildings. These include duplexes, triplexes, townhomes, and small multi-unit buildings designed to fit into existing neighborhoods while offering more attainable price points.

What “Missing Middle” Means Today

The term “missing middle” refers to housing that fills the gap between low-density single-family homes and high-density luxury complexes. In other words, it’s a gap that’s become increasingly visible in Greenville’s rapidly growing housing market. Without enough of these mid-range options, many local workers, young families, and long-time residents are either priced out or forced to live far from job centers.

Even as the city implements new zoning tools to enable missing middle housing types (like allowing duplexes and triplexes in more zones and reducing barriers for small-scale infill development), there’s still much to do. Policies passed over the past few years are now starting to make room for this type of housing in both community-scale and neighborhood-scale zones . This is a step toward integrating missing middle units into established parts of the city.

Why New Construction Alone Isn’t Enough

Across Greenville County (our county and city governments are separate here and people sometimes confuse that fact), most new construction in recent years has been concentrated on market-rate apartments and luxury units, which are profitable but often out of reach for many households. Nationwide, developers naturally gravitate toward higher-end rentals, leaving a relative shortage of units that are affordable for people earning around 50–80% of the Area Median Income (AMI). Preserving and improving existing housing stock remains essential.

Local Progress & Emerging Solutions

Instead of relying solely on expensive new construction, Greenville and surrounding communities are blending multiple strategies:

• Preserving existing affordable housing stock: Research shows it’s often significantly less expensive to rehabilitate and preserve existing homes than to build new ones. Efforts are underway to invest in aging properties, so tenants don’t have to choose between affordability and decent living conditions. Yes, that is what we do at Affordable Upstate.

• New affordable developments moving forward: The Alliance affordable housing project near downtown Greenville received key approvals and state tax credits, allowing around 100 deeply affordable units (targeted between 20%–70% of AMI) to proceed thus bringing new housing options closer to jobs and transit.

• County-wide focus on housing needs: Organizations such as United Way of Greenville County emphasize that rising prices and rents are squeezing incomes, leading to increased calls for rental assistance and support services. These trends highlight the need for housing solutions that span from emergency support up to homeownership.

Looking Ahead

Greenville’s missing middle housing strategy continues to evolve in 2026. The city’s updated development code, incentives for affordable units, and long-term investments aimed at preserving and creating housing for a range of income levels show where the conversation has shifted: from why it matters to how we build it.

Families shouldn’t have to choose between affordability and a decent place to live. By combining policy reform, preservation, and creative development, Greenville is working toward a housing market that serves the broad spectrum of residents who call this vibrant city home.

Seen in the Greenville News

Thu, 05 Feb 2026 21:27:26 GMT

Check out this great opinion piece in the Greenville News from our CEO, Mario Brown.

The Greenville News recently ran this opinion piece on the state of affordable housing in our region. You can read it all here.

Why Business Investors Should Seriously Consider Affordable Housing in Upstate South Carolina

Thu, 05 Feb 2026 13:53:11 GMT

The Upstate is emerging as one of the most compelling investment landscapes for affordable apartments and housing in the Southeast.

As the U.S. rental housing market continues to evolve, savvy investors are looking beyond the traditional gateway cities and toward regional markets with strong economic fundamentals, rising demand, and room for long-term growth. The Upstate of South Carolina, which is anchored by Greenville, Spartanburg, Anderson, and surrounding communities, is emerging as one of the most compelling investment landscapes for affordable apartments and housing in the Southeast.

1. Strong Population and Job Growth Create Ongoing Demand

One of the clearest fundamentals driving multifamily and affordable housing demand is population growth. The Upstate region has consistently seen inbound migration and population increases that outpace much of the country. That draws both remote workers seeking a lower cost of living and families relocating for job opportunities. This influx directly translates into rental demand, especially in entry-level and workforce segments where renting remains the most attainable housing option.

Economic growth is equally robust. Major employers such as BMW Manufacturing, Michelin North America, Lockheed Martin, and an expanding tech and healthcare sector are fueling job creation that supports stable household formation and reliable rental occupancy. Steady employment paired with competitive wages attracts a diverse renter base from young professionals to middle-income families.

2. Market Fundamentals Favor Investors

What makes a market attractive for investors? Fundamentally, it’s the combination of supply/demand balance, rent growth potential, and long-term stability . In Upstate South Carolina:

Absorption rates remain strong with new apartments are being leased quickly even as delivery continues, showing that demand keeps pace with supply.
Rents continue to trend upward with occupancy solid even as new units come online.
Housing affordability challenges elsewhere push more renters toward apartments especially workforce and mid-tier units that many developers under build relative to high-end luxury projects.

For affordable and workforce housing investors, this translates into consistent occupancy, predictable cash flow, and strong long-term rental demand even as luxury markets fluctuate.

3. Affordability Remains a Regional Strength

Compared to many Sunbelt and coastal metros, Upstate South Carolina offers a relatively lower cost of living and lower barrier to entry for both residents and investors . Spartanburg and Anderson offer particularly strong value propositions for housing, attracting residents priced out of more expensive markets while offering investors solid rent-to-price ratios.

This affordability isn’t just good for tenants, it’s an investment advantage. Lower cost bases for acquisition and renovation allow investors to scale portfolios more easily than in overheated regions, while still capturing rent growth as the market continues to attract newcomers.

4. Favorable Business and Regulatory Environment

South Carolina’s business climate contributes to investor confidence. The state’s relatively landlord-friendly regulations (including a lack of rent control and efficient eviction processes) reduce regulatory risk. Additionally, competitive tax structures and incentives for business growth help keep operational costs down and improve net operating income potential for housing investors.

This pro-growth policy posture, combined with local initiatives that support housing preservation and redevelopment, makes the Upstate an attractive environment for capital looking for both yield and social impact .

5. Strategic Value of Affordable Housing

Affordable and workforce housing isn’t just socially responsible. It’s strategically smart. With rising home prices making traditional homeownership increasingly out of reach for many households, demand for quality rental options is accelerating. Investing in affordable apartments not only meets a growing social need, but also positions investors to benefit from sustained occupancy, government incentives, and long-term demand tailwinds .

Moreover, investors who focus on value-add strategies such as renovating underperforming assets or modernizing units for efficiency that can create tangible value while stabilizing communities. This dual economic and community impact enhances investor reputation and asset resilience.

For investors evaluating the next strong region for multifamily and affordable housing investment, Upstate South Carolina stands out .

With strong population growth, job creation, favorable market fundamentals, and a business-friendly climate, the region offers compelling reasons to invest now. Whether you are a seasoned multifamily investor or looking to diversify into a high-growth regional market, the Upstate presents both opportunity and stability that few areas can match in today’s economic landscape.

Mario on Investor Fuel

Mon, 02 Feb 2026 17:45:42 GMT

Give this great podcast a listen!

Check out this fantastic interview of Mario Brown with Investor Fuel. Or give it a listen here. Either way, why don't you give Investor Fuel a follow!

Mario shares his journey into real estate, which began with a sales role at a home builder and evolved into a passion for community-focused housing solutions. He emphasizes the importance of aligning professional skills with community needs, leading to innovative approaches in property management and resident engagement. Mario discusses the operational challenges he faced and how they inspired him to create businesses that not only manage properties but also enhance the living experiences of residents.

5 Key Affordable Housing Investment Trends to Watch in 2026

Thu, 15 Jan 2026 15:53:29 GMT

Here are five major trends poised to define affordable housing investment in 2026.

Affordable housing continues to be one of the most pressing socioeconomic challenges across many regions, and 2026 looks to be a pivotal year for investors who want to make an impact and earn sustainable returns.

Shortages in supply, evolving demographics, policy shifts, and innovative financing are converging to create new opportunities and reshape how capital flows into this asset class. Here are five major trends poised to define affordable housing investment in 2026.

1. Policy Momentum and Expanded Tax Credit Programs

One of the most important trends shaping affordable housing investment next year is the rollout of policy changes designed to stimulate new development. A significant shift comes from updates to the Low-Income Housing Tax Credit (LIHTC) program, which is one of the most powerful federal tools for financing affordable units. In 2026, the industry will see an unprecedented supply of housing credits hitting the market, as permanent increases to LIHTC allocations take effect and bond financing tests are reduced thus making more deals feasible, according to Housing Finance.

This change isn’t just incremental. It’s structural. With more credits available and lower thresholds for bond-financed projects, developers and investors can pursue larger portfolios of affordable units with improved financing economics. As these credits become available, capital allocators will need to think strategically about timing, project eligibility, and geographic deployment to maximize impact and returns.

2. Public-Private Partnerships and Creative Capital Flows

Investors increasingly recognize that traditional finance alone can’t meet the scale of demand for affordable housing. That’s why public-private partnerships (PPPs) are gaining traction as a way to pool resources, share risk, streamline approvals, and accelerate construction timelines, according to the real estate website TBH Land.

Governments at all levels are offering incentives ( land leases and tax abatements to zoning flexibility ) in exchange for affordable unit commitments. Meanwhile, community development financial institutions (CDFIs) and impact-oriented funds are stepping into the market with new vehicles that attract institutional capital while delivering social returns. Impact investing, where financial gain is tied to measurable community benefits, is also emerging as a differentiated strategy within real estate portfolios.

For investors, PPP structures and impact vehicles can unlock access to deals that might otherwise be too costly, while aligning with Environmental, Social, and Governance (ESG) mandates that many institutions now prioritize.

3. Rise of Build-to-Rent and Alternative Housing Models

The build-to-rent (BTR) trend -- long popular for single-family rental homes -- is increasingly crossing into the affordable space. Traditionally seen in higher-income suburban markets, BTR communities offer institutional investors a hybrid between multifamily scale and detached unit demand. Analysts expect BTR to accelerate as developers aim to meet rental demand from households priced out of homeownership.

This shift is significant because it broadens the scope of affordable housing beyond income-restricted units to include naturally affordable product types. Combined with demand from Millennials and Gen Z renters, who continue to delay home buying , BTR projects in secondary and tertiary markets may offer long-term stable cash flows with lower tenant turnover.

Alternative models such as co-living or modular/prefabricated construction also promise cost efficiencies and faster delivery timelines. Although these formats are still emerging, they represent creative responses to persistent supply challenges.

4. Preservation Takes Center Stage Over New Build

While new construction remains essential, the preservation of existing affordable housing stocks is becoming just as strategic -- especially when barriers like high material costs and slow approvals slow down greenfield development. Investors are actively seeking to modernize and refinance older income-restricted properties, extending their usable life and ensuring affordability is maintained without waiting for new units to be built, according to CRE DAILY.

Portfolio repositioning also aligns with broader ESG goals and rent stability objectives. From a risk perspective, preservation deals often come with predictable operating histories and established tenant bases, making them attractive for long-term holders.

5. Institutional Capital and Growing Investor Appetite

Survey data from industry participants indicates growing optimism among investors and developers about affordable housing in 2026 , with a strong majority expecting increased investment activity. In fact, around 90% of affordable housing professionals believe investor appetite for the sector will rise next year.

This sentiment is driven by both need and opportunity: demographic shifts contributing to rental demand, ongoing housing shortages, and the perception of affordable housing as a recession-resilient, income-producing asset class. As institutional capital such as pension funds, REITs, and insurance companies expands its exposure, more sophisticated financial instruments (like affordable housing bonds and social impact funds) are likely to emerge.

Affordable housing investment in 2026 will be defined by policy support, innovative financing, and adaptive asset strategies. Investors who align their capital with long-term demand fundamentals (while leveraging new public policies and partnership models) stand to benefit not just financially, but socially.

AU's Mario Brown named to Sc 500 List

Fri, 19 Dec 2025 16:52:05 GMT

The South Carolina 500 is SC Biz News’ first-ever list of the Palmetto State’s most powerful and impactful leaders in business, nonprofits, government and higher education.

SCBIZ News has named Affordable Upstate’s Mario Brown to the inaugural South 500 list.

The South Carolina 500 is SC Biz News’ first-ever list of the Palmetto State’s most powerful and impactful leaders in business, nonprofits, government and higher education. The South Carolina 500 is based on staff research, not nominations.

An Anderson native, Brown earned degrees in English as well as in Political Science from Gardner-Webb University while also being an All-American football player. After cutting his teeth in business management and marketing with a national sports training company, Brown decided to go all-in on Greenville in residential construction and brokerage. He spent three years representing a regional production builder. Eager for a more integrated, local work concentration, he joined Milestone Custom Homes, an exclusive luxury home builder, as their director of sales and marketing. The four years he spent at Milestone helped him truly understand the creative impact builders and developers have on the residential landscape. The education and exposure he received being a part of best-in-class developments like Hartness Village stick with him to this day.

A graduate of Leadership Greenville, the program inspired Brown to co-found Affordable Upstate in 2017. Since then, Affordable Upstate has placed more than $50 million of investor equity into socially responsible, environmentally-enhanced workforce housing investments.

“Every day I get to make a difference in people’s lives through affordable housing,” Brown said. “To be honored for that is amazing.”

About Affordable Upstate:

$59M refinancing secured for Affordable Housing portfolio

Mon, 15 Dec 2025 13:49:18 GMT

We helped secure almost 600 affordable housing units in Greenville today.

Affordable Upstate has secured a $59 million loan for the crossed collateralized cash-out refinancing of Paris Park, Terrain at Haywood, and Mauldin Meadows through a partnership with JLL Capital Markets.

JLL is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients, whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. JLL worked on behalf of Affordable Upstate in arranging the three-year interest only loan through Truist Bank.

Affordable Upstate acquired these properties between December 2021 and September 2022 with a common equity structure allowing for the cross collateralization. They represent affordable housing for 598 families in Greenville County.

Since acquiring them, Affordable Upstate has invested more than $13.6 million in capital improvements, self-imposed affordability restrictions at 80% of AMI and 60% of AMI at each asset, and efficiently managed the assets with the team at NOAH Property Management to drive an increase in net operating income by roughly 65% across the portfolio.

“This refinance demonstrates how financial institutions can advance permanent affordability through policy-aligned capital structures,” said Mario Brown, CEO of Affordable Upstate. “Truist’s support of assets with self-imposed affordability and proven operational discipline shows how CRA-aligned financing can substitute private risk with public participation. This partnership strengthens a regional housing infrastructure that delivers durable, predictable outcomes for residents and communities across North and South Carolina.”

JLL Capital Market’s Debt Advisory team representing the borrower was led by Director Carter Wroblewski, Managing Director Taylor Allison, and Analyst Sydney Powell.

“Appreciate for Truist’s non-recourse solution demonstrating continued lender confidence in affordable housing strategies that create both social impact and strong returns," said Wroblewski. "Affordable Upstate's proven track record of improving properties while maintaining affordability makes them an ideal partner for lenders and investors seeking mission-driven opportunities.”

The financing addresses the growing need for affordable housing in the rapidly expanding Greenville metropolitan area. This transaction ensures that these 598 units will remain a source of quality, affordable housing for the community, providing stability for residents amidst regional growth.

“This transaction reflects Truist’s commitment to responsible financing solutions that preserves long-term affordability in the communities we serve,” said Andy Holland, Mid-South Market Manager at Truist National Real Estate. “We’re proud to work alongside our partners to keep quality housing accessible for families in the Greenville area.”

A Year of Impact, Innovation, and Community in 2025

Tue, 09 Dec 2025 14:34:58 GMT

Looking back at our 2025 achievements while previewing what we have in store for 2026

As 2025 comes to a close, Affordable Upstate is reflecting on a year marked by bold progress, deepened partnerships, and meaningful outcomes for residents across the communities they serve. What started as a shared mission to preserve affordability and elevate housing quality has now grown into a regional model of what responsible, community-focused real estate can look like. This year brought new projects, stronger systems, and expanded resident services—each milestone reinforcing the belief that stable, dignified housing is the foundation of lasting opportunity.

Preserving Affordable Housing at Scale

One of the most significant achievements of 2025 was Affordable Upstate’s continued expansion of naturally occurring affordable housing (NOAH) preservation. Through several strategic acquisitions, the organization successfully protected hundreds of units from market-rate conversion, ensuring that long-time residents could remain in their neighborhoods without facing displacement.

These acquisitions weren’t just about maintaining affordability—they were about revitalizing aging properties without pricing out the very people who call them home. By focusing on older mid-sized buildings often overlooked by large developers, Affordable Upstate strengthened its role as one of the region’s most reliable stewards of long-term affordability.

NOAH Property Management: Raising the Bar for Resident-Centered Care

Behind every well-maintained building is a dedicated team, and this year NOAH Property Management continued to redefine what resident-centered property management can look like.

In 2025, NOAH Property Management rolled out new quality-of-living initiatives, including a streamlined maintenance request system that improved turnaround times, enhanced landscaping and common-area upgrades, and community-driven programming shaped by direct resident feedback. The results were clear: higher satisfaction scores, stronger communication, and safer, more welcoming environments for families.

NOAH Property Management also invested heavily in staff development, recognizing that the people supporting residents each day deserve the same level of care and commitment. More training, clearer processes, and new mentorship opportunities helped build a culture where employees feel empowered, and residents feel the difference.

Investing in Energy Efficiency and Long-Term Sustainability

Sustainability took center stage in 2025 as both organizations accelerated their push toward healthier, more efficient buildings. Through partnerships with local energy-efficiency programs and private sustainability consultants, Affordable Upstate implemented a series of upgrades such as LED conversions, improved insulation, and HVAC overhauls.

These improvements not only reduced operating costs -- a savings ultimately returned to the long-term affordability of the properties, but also created more comfortable, stable homes for residents. Environmental responsibility and economic responsibility went hand-in-hand, reinforcing the belief that affordable housing and sustainability are not competing priorities but complementary ones.

Deepening Community Partnerships

Affordable Upstate and NOAH Property Management have always believed that a home is more than a unit—it’s a gateway to opportunity. In 2025, they expanded partnerships with local nonprofits, service agencies, and workforce development organizations.

These collaborations brought after-school programs, financial literacy workshops, health screenings, and neighborhood events directly to residents. The result was stronger connections, more resource accessibility, and a greater sense of belonging across the communities served.

Looking Ahead: A Promising 2026

If 2025 was a year of momentum, 2026 is shaping up to be a year of transformation. With new properties in the pipeline, expanded resident services on the horizon, and continued investments in sustainable building practices, both Affordable Upstate and NOAH Property Management are poised to deepen their impact in unprecedented ways. Residents, partners, and supporters alike can look forward to a year where affordability is protected, communities are strengthened, and the promise of stable housing continues to open doors to brighter futures. The foundation laid in 2025 is strong, and the work ahead in 2026 will make it even stronger.

As seen in UpstateBizSc

Mon, 08 Dec 2025 19:47:17 GMT

Mario Brown piece on affordable housing demands makes regional news

We are honored to share this story from UpstateBizSc that featured our CEO Mario Brown talking about the demand for affordable house and how it creates an impact on schools. You can read it here.

Lack of Affordable Housing is Hurting Schools

Mon, 17 Nov 2025 16:16:50 GMT

A lot of places are looking at how to handle the issue of teachers and housing, and South Carolina is not immune from this problem.

We hear a lot about educators leaving their profession, and that there is a looming teacher shortage across the country.

While we often hear about low pay and burnout being the major factors, there is another major issue. Lack of affordable housing. Many teachers are being priced out of the communities they work in. That leads to them leaving the profession or simply leaving a school system for another that has cheaper housing.

A lot of places are looking at how to handle this issue, and South Carolina is not immune from this problem.

As someone who works in affordable housing, here are some things I would like to see done in South Carolina to help get teachers closer to the schools they want to teach at.

1. Inventory and leverage publicly owned land

Action: State education agencies (the South Carolina Department of Education) and each district should conduct a land-asset audit : identify under-utilized or surplus real estate (closed or under-used school sites, district offices, buffer parcels) that could be repurposed for educator housing.
Why: California school districts own more than 75,000 acres of potential developable land, which they have used to help create affordable housing for educators.
Tip: Prioritize sites near schools, transit, or community hubs to reinforce the “live-where-you-teach” ideal.

2. Create a dedicated educator‐housing financing stream

Action: Establish a state or regional fund (via South Carolina infrastructure/housing finance mechanisms) that supports educator-housing developments (grants, low-interest loans, tax abatements).
Why: These projects often require novel financing tools (certificates of participation, philanthropic partnerships) because conventional housing finance may not reach this niche.
Tip: Structure incentives so that developers offer reduced rent/purchase terms to teachers for an initial period (for example: first three to five years) to ease the transition into community.

3. Require or encourage teacher‐eligibility occupancy clauses

Action: For any housing development built via district or public‐private partnership, include an eligibility clause: “resident must be full- or part-time school district employee” for a defined initial term.
Why: Many teacher housing programs require occupancy on being a district employee at move-in (so that housing serves the workforce, not just any renters).
Tip: Consider “portable” eligibility: if a teacher leaves the district, allow them to stay for a grace period or convert to market rate rather than immediate displacement.

4. Integrate housing with teacher recruitment, retention and community engagement

Action: Pair housing initiatives with professional-support programs such as mentoring and community orientation.
Why: When teachers live locally, they build stronger relationships with students, families, community spaces, which can deepen trust and retention.
Tip: Track outcomes: retention rate, commute time, community involvement, student outcomes. Use data to refine the strategy.

5. Facilitate modular / alternative housing models in smaller/rural districts

Action: Recognize that in South Carolina many districts are rural or small; pilot alternative models: converted motels, tiny homes, clustered modular units, teacher home-buyer assistance in partnership with local housing authorities.
Why: In Fort Stockton, a small, rural town in West Texas, the school district bought a motel in 2022 and converted it into teacher housing. In Arizona, the Chino Valley Unified School District built tiny homes for its teachers in 2023, renting them at $550 per month.
Tip: For rural districts, consider partnering with regional housing authorities or developers to spread cost across multiple districts or share services.

6. Build cross-sector partnerships: housing, education, economic development

Action: Establish an Educator Housing Task Force in each region (or at state level) bringing together: school district leadership, housing agencies (e.g., South Carolina State Housing Finance & Development Authority), city/county economic development, and local philanthropy/nonprofits.
Why: The model works best when it’s not purely a school‐district project but a community/municipal housing initiative aligned with workforce/education.
Tip: Use the task force to identify funding gaps, align zoning/regulatory incentives (expedited permitting, density bonuses), and community outreach.

Educators are the bedrock of our communities and our future workforce. If South Carolina is to attract and retain high-quality teachers, especially in growth corridors, underserved rural areas, and high-need schools, then we must consider housing as part of the solution.

Building or repurposing housing for teachers isn’t just a “nice‐to‐have, it’s a strategic lever to strengthen schools, stabilize communities, and reinforce the bond between educators and the places they serve.

By proactively aligning housing policy, school district workforce strategy, and public-private partnerships, South Carolina has an opportunity to be ahead of the curve. Let’s commit to ensuring that teachers can not only work in our communities, but live there, engage there, and be part of their neighborhoods.

Five Ways Greenville is embracing affordable housing

Fri, 10 Oct 2025 13:12:56 GMT

Taking a look behind what Greenville is doing with affordable housing

Affordable housing is a major buzz word in the Upstate right now. As people move in, it creates more demand for housing of all kinds. And with a short supply of available housing, that has created a major increase in prices.

As a lifelong resident of the Upstate (save for my college years), I am often surprised and alarmed when I see the prices of houses on Zillow and other listing services. For someone who works heavily in the affordable housing sector, it could feel discouraging, but there is a lot to celebrate.

Here are five major positive developments in affordable housing in Greenville that have happened in the past six months.

1.New Affordable Housing Projects Opening & Underway: There are several new developments that are delivering affordable housing units for those earning low and moderate incomes:

The Riley at Overbrook: 88 affordable units have opened in the Overbrook neighborhood. These serve renters making 20–60% of the Area Median Income (AMI), with some units reserved for households under 30% AMI.
Southpointe Senior Residences : A project exclusively for seniors (55+), with 90 one- and two-bedroom units. Preleasing is expected to begin in December 2025.
Southernside Senior East (and West coming soon): This project is adding 93 units for low- and moderate-income seniors, with many amenities. Construction is underway .
The Alliance: Located near Laurens Road and Ackley Drive, this project will create 100 fully affordable units (serving families earning up to 60% AMI), plus some commercial space.

These developments don’t just create units, they provide a variety of housing types (senior housing, family units, different AMI levels), helping address needs across the savings/earnings spectrum.

2.Flexible & New Funding Tools & Incentives: Greenville has been aggressive about using funding tools and incentives to make affordable housing viable.

Low-Income Housing Tax Credits (LIHTC) have been used to fund multiple recent projects (The Alliance, Southernside Senior, Summit House renovation) bringing in tens of millions in investment.
The City committed $2.5 million annually to the Greenville Housing Fund (GHF) for several years. That gives local affordable housing developers stable backing.
Using tourism/accommodations taxes for affordable and workforce housing is a newer money source . This was made possible by state law.

These tools help bridge the financial gaps (land, construction, operations) that often make affordable housing difficult to build in fast-growing, rising cost markets like Greenville.

3.Strategic Planning & Policy Commitments: Greenville isn’t just reacting; it’s planning. The city has put policies in place aimed to ensure future growth doesn’t leave people behind.

GVL2040 Comprehensive Plan: Among other goals, this plan aims for at least 10% of all new housing in the city to be income-restricted (i.e., affordable), up from current levels.
The City has updated its development code to include affordable housing incentives: things like bonus density or height for developments that include affordable units, waived fees, expedited permitting, and more.
Large land purchases to protect neighborhoods and set aside land for future affordable housing development: e.g., acquisition along Church Street / the Haynie-Sirrine area to resist speculative development and hold land for affordable uses.

This kind of forward-looking work is essential to avoid housing shortages, displacement, and rising costs that price many people out.

4. Focus on Deep Affordability & Special Populations

It’s not only about building more housing, but ensuring it's affordable to those who need it most, and designing it with varying household types in mind.

Several projects set aside units for very low income households (20–30% AMI). For example, The Riley at Overbrook includes units for those at ≤30% AMI.
Projects for senior citizens, a group often underserved in affordable housing, have made real headway: Southernside Senior East, Southpointe Senior Residences, Summit House, etc.
Also intersecting with services: some developments include supportive services, amenities, and community spaces, not just units. For example, Mercer Housing’s Belvedere in Mauldin includes onsite services for wellness, academic enrichment, and more.

Ensuring deep affordability is harder (lower subsidies, more financial risk), so these are especially encouraging.

5. Preservation & Land Banking

It’s good to see that Greenville isn’t only building new affordable housing, but working to preserve what already exists and secure land for future needs.

Preservation / Rehabilitation: The Summit (senior complex downtown) will undergo renovation of 101 units so they remain safe and affordable.
The Greenville Housing Fund has also acquired land for future affordable and workforce housing via its land bank. Land banking can reduce acquisition costs and give more flexibility.
Policies or practices like waiving fees, grants to renovate existing affordable homes, etc., help retain affordability and prevent loss of units. Taken together, these positive developments show a multi-pronged approach: building new units, preserving existing ones, applying policy tools, targeting deep affordability, and investing in planning. Greenville is not only responding to its affordable housing shortage but working proactively to shape growth in a way that keeps housing options open for more people.

The need for affordable housing explained in four numbers

Fri, 05 Sep 2025 13:29:47 GMT

We are taking on a behind the numbers look at what is affecting affordable housing in the Upstate of South Carolina. Get ready to learn!

Everyone involved in planning, working in the real estate sector or having a pulse has heard something in the past year about the need for affordable housing in our community.

And I’m here to tell you again with four numbers to remember.

31: That is the percentage increase over three years in average rents in Greenville . I don’t have the number of the average wage increase, but I’m willing to guess that number isn’t anywhere near 31 percent.
18,876: The average rent for a one bedroom apartment in Greenville is $1,573 per month, according to RentCafe . That is $18,876 a year on housing for a one bedroom. A person would need to be making roughly $60,000 a year just to be paying less than one-third of their salary on housing.
33,249: That is the gap in housing that we have in Greenville versus what we have in the market, according to the latest data . That is more than the number of people who live in the City of Anderson. Imagine that, the city of Anderson having no place to live. That’s not even looking at affordable housing. So, the next time someone tells you we don’t need more housing in the Upstate? That we are “full.” Tell them about Anderson.
91,000: That is the average number of people to South Carolina each year. Not all of them move to the Upstate obviously, but when we look at the compounding factors leading to our affordable housing shortage…this is a main factor.

What does this all mean and why does it matter?

It’s because this is about more than just affordable housing. Without affordable housing, workers face long commutes or displacement, undermining job productivity and local economic growth. Displacement and rising costs disproportionately impact vulnerable populations and low-income households, deepening inequality and fraying community bonds. Research shows that affordable housing reduces eviction risk, improves health outcomes, and stabilizes families.

To address this multifaceted crisis, we as a community must:

Ramp up construction and preservation of units aimed at the lowest income brackets, those earning below 50% of AMI.
Expand policy tools such as stronger incentives, raising funding thresholds, exploring rent control, utilizing hospitality taxes, or other creative financing; public demand has pushed leaders toward action.
Promote inclusive, mixed-income developments that will ensure affordable options are integral to new growth, not sidelined.
Preserve voucher-accepting units and prevent displacement in historically low-income neighborhoods.

As Greenville keeps growing as a thriving economic and cultural hub, the rising cost of housing and a growing shortage of affordable units pose a serious threat to the well-being of many working families.

Affordable Upstate featured in The Greenville Blog

Wed, 13 Aug 2025 14:18:56 GMT

Read this great piece from our CEO Mario E. Brown that dives into an important issue in our community

If you are looking to get into the multifamily industry, then you need to read this insightful thought leader piece that looks directly at some of the key issues that don't often get spoken about. Read it here .

Tackling the issues of The Eviction Crisis

Fri, 08 Aug 2025 17:56:29 GMT

Our CEO Mario Brown recently opined about the issues with the Eviction Crisis in Greenville

Greenville County is confronting a mounting eviction crisis.

Our CEO Mario Brown was interviewed about this situation by the Simple Civic Podcast , but we want to explain more about what is happening.

According to eviction filings tracked by the Legal Services Corporation, more than 66,000 eviction cases have been filed in Greenville County since March 2020. That’s more than 900 a month on average. Data from Princeton’s Eviction Lab shows that over the past 12 months one in five renters in Greenville County has had eviction papers filed against them (roughly a 20% filing rate). That rate is three times the national average and places Greenville among the highest‑eviction counties in South Carolina

What’s driving rising evictions?

Several structural trends are fueling this crisis:

Rents are soaring faster than incomes can keep up. Many residents who spend more than 35% of their income on rent are described as cost-burdened. Nearly a third of county renters now fall into that category.
Stagnant wages and unexpected costs (such as medical bills or auto repairs) push tenants behind on rent and into eviction.
Legal disadvantages, In South Carolina, eviction is a civil case, not criminal, so tenants seldom have legal representation. Nearly 99% of renters facing eviction have no lawyer, severely impairing their ability to defend themselves.
Evictions remain on the public record , even if the case is dismissed or settled, making future housing access extremely difficult.

Community‑led response

In early 2025, more than 300 residents and local clergy rallied under GOAL (Greenville Organized for Accountable Leadership) to push action on housing affordability and eviction reform. Their Nehemiah Action campaign called for two major reforms:

Establish a Greenville County Housing Court by 2025–2026 that is modeled after successful programs in Charleston and Richland counties and will offer free legal representation for income‑eligible tenants and mediate landlord‑tenant disputes.
Support state legislation (Senate Bill 56 and House Bill 4270) to allow eviction filings to be sealed from public record when tenants prevail or settle favorably.

In addition, groups such as the Greenville Homeless Alliance, Catalyst Consulting, and United Way/Furman University have advocated a layered set of solutions:

Legal representation/right to counsel : A statewide program funded at around $7.2 million per year could save $21 million in social costs, for every dollar spent yielding nearly three dollars in savings.
Tenant & landlord education: rent‑responsibility workshops, landlord “lunch‑and‑learn” events, credit counseling, and guidance on Fair Housing laws.
Expand affordable housing supply: liberalizing zoning, allowing denser development, building more mixed‑income housing, especially near downtown and transit corridors like White Horse Road.
Financial assistance: prioritizing rental aid using predictive tools that identify high-risk households can prevent evictions proactively, rather than reactively.

Our take on it:

This is a social problem, but it’s also an economic problem that, for those of us in tune with the vibrancy of Greenville, the small business community, if we care about our service workers and our baristas, we care about our children’s teachers, the folks that actually need to access attainable housing, we should care about this issue because this impacts them. The issues, the cost that they incur within housing, 100% is reflected in the cost of the cup of coffee that we buy every morning.

Check us out on the Simple Civics Podcast

mario@affordableupstate.com (Mario Brown) — Thu, 31 Jul 2025 17:57:53 GMT

Affordable Upstate's Mario Brown was interviewed about issues facing the affordable housing community on Simple Civics

We are excited to share this recent interview with Mario Brown on Simple Civics , which is an amazing asset created by Greater Good Greenville. Mario talked at length about the eviction process in Greenville and beyond.

At Affordable Upstate, we’ve seen the eviction problem up close. Managing over 1,500 naturally occurring affordable housing (NOAH) units across Greenville and Upstate South Carolina, we deal with evictions weekly.

Interview with Upstate Trail Talks

Wed, 16 Jul 2025 16:53:29 GMT

Interview with Upstate Trail Talks on the growing world of affordable housing

Proud to share this interview our CEO Mario Brown did with Upstate Trail Talks that just came out. This was no ordinary interview. Mario did this with while walking the Swamp Rabbit Trail that connects all of Greenville, which is really fitting for what we do here at Affordable Upstate.

We are connecting people from all the corners of Greenville (and beyond) to make a stronger, better community.

Give it a listen below, and let us know your thoughts.
https://open.spotify.com/episode/4R97odCwyaKhzX4Xg4rNL0

Affordable Upstate partners with Homes of Hope

Mon, 07 Jul 2025 18:43:37 GMT

AU in the Columbia Business Report

Last month, we announced this story about a partnership with Homes of Hope in Rock Hill.

Below is what the Columbia Business Report wrote about this project.

"In a collaborative effort to strengthen the landscape of affordable housing in South Carolina, Homes of Hope and Affordable Upstate have finalized the transfer of 18 single-family rental homes in Rock Hill.

This partnership safeguards the affordability of the units while supporting the continued growth and mission-driven work of both organizations, a news release stated.

The project reflects a shared vision: ensuring that South Carolina families continue to have access to stable, affordable housing — even as the region faces escalating housing costs and a significant shortage of quality affordable units, the release stated.

“This transaction will be transformational in its impact, and more importantly, incredibly stabilizing for the families living in these homes,” said Don Oglesby, president and CEO of Homes of Hope , in the release.

The homes will remain affordable under the stewardship of Affordable Upstate, whose mission is to preserve affordability through intentional ownership and community-centered housing solutions, the release stated.

This strategic decision allows Homes of Hope, a leading provider of affordable housing and workforce development in South Carolina, to maximize its capital needs while ensuring the long-term affordability of these homes for families who need them most, the release stated. The sale reflects a shared commitment to addressing the region’s deepening housing crisis through thoughtful collaboration and forward-looking solutions.

South Carolina faces a dire shortage of affordable housing, with thousands of families burdened by rising rents and limited housing options, according to the release. By transitioning ownership of the Rock Hill properties to Affordable Upstate, Homes of Hope ensures continuity in affordability while preserving the integrity of its mission and positioning itself for continued impact in the years ahead.

“Through a model that seamlessly integrates collaboration across sectors, Homes of Hope shows what’s possible when cities, nonprofits, investors, and developers unite around a shared vision,” said Mario Brown, co-founder and CEO of Affordable Upstate, in the release. “We are especially grateful for the Fieldmont Group and Clark Merritt, whose deep management experience and facilitation will play a pivotal role in preserving the legacy of affordability that Homes of Hope has established here.”

Revitalizing Naturally Occurring Affordable Housing (NOAH): A Value-Add Approach

Tue, 27 May 2025 19:02:40 GMT

Revitalizing Naturally Occurring Affordable Housing (NOAH): A Value-Add Approach

What is “Naturally Occurring Affordable Housing” (NOAH)?

Naturally Occurring Affordable Housing (NOAH) refers to older, unsubsidized apartment properties that are affordable due to their age, condition, or location – not because of any government affordable-housing program. These are typically Class B or Class C multifamily buildings (often 20+ years old) that have lower rents simply because they’re a bit dated or worn.

Importantly, NOAH units receive no direct public subsidy; their affordability is “natural” – a product of low market value, older features, or less-desirable location rather than rent control or tax credits. In fact, the majority of affordable rentals in the U.S. – about 75% – are NOAH units without any government assistance .

Lower-income households rely heavily on this aging housing stock for reasonably priced shelter. However, because these properties are older and cheaply priced, they are vulnerable – many face deteriorating conditions or get bought by investors who upgrade them into luxury units, causing rent spikes and displacement. Preserving NOAH has therefore become a critical strategy to maintain affordable housing options as cities like Greenville grow.

The Challenge: New Affordable Construction is Cost-Prohibitive

One might ask: why not just build new affordable apartments? The reality is that developing new housing with rents below $1,000 is nearly impossible without heavy subsidies , especially in today’s market. Construction material and labor costs have surged, and financing costs are high, so any brand-new apartment complex typically needs to charge much higher rents (often well over $1,200–$1,500 for a basic unit) to be financially viable. In the Greenville, SC area, this challenge is stark – recent data showed only 2% of apartments were listed for under $1,000/month. When you factor in utilities, the effective housing cost becomes unaffordable for over two-thirds of local workers.

Simply put, without significant government subsidies (which are limited), private developers cannot profitably build new units and rent them for under $1,000 . This leaves a huge gap in the market where moderate-income families can’t find newly built housing within their budget. As a result, preserving and improving older affordable complexes is often the only feasible way to offer sub-$1,000 rents. It’s a pragmatic response to high construction costs – rehabilitating existing apartments tends to be far cheaper than ground-up development , sometimes costing 30–50% less per unit than building new . Thus, revitalizing NOAH isn’t just a feel-good option; it’s an economic necessity in many markets.

Preserving Affordability with Value-Add Renovations of Class B/C Propertiesvv

Given the hurdles of new construction, acquiring and renovating aging Class B and C multifamily properties has emerged as an effective strategy to preserve affordable housing . This approach treats older apartments as an opportunity: investors purchase a worn-down complex at a lower price, invest capital to rehab the units (new roofs, HVAC, interiors, etc.) , and in doing so extend the property’s useful life by decades. The result is a value-add multifamily project – the property value and rents may increase after renovation, but the key is how it’s done. A mission-driven value-add strategy for NOAH focuses on keeping the upgraded units rent-accessible for moderate-income tenants (often below market rates) , so the housing remains affordable even after improvements.

This model works well for several reasons:

Cost Efficiency: It is far cheaper to rehab an existing unit than to build a new one from scratch. Upgrading an older apartment (fixing deferred maintenance, updating interiors) can cost a fraction of new construction, allowing investors to charge reasonable rents while still covering costs. As McKinsey notes, preserving an existing NOAH unit can be done at a fraction of the cost of building a new affordable unit ( mckinsey.com ), which makes preservation a financially savvy move in supply-constrained markets.

Faster Delivery: Renovations generally have shorter timelines than new development (no lengthy permitting for new structures or land acquisition hurdles). This means improved units can come online faster for renters in need.

Preventing Displacement: By buying these properties before purely profit-driven speculators do , mission-oriented investors can prevent scenarios where NOAH buildings are flipped into high-end rentals. In many markets, older affordable complexes get acquired by outside developers who then do luxury upgrades and raise rents by hundreds of dollars, effectively pricing out long-time residents. A preservation-minded renovation still upgrades the property (improving safety and quality) but keeps rent increases moderate , often aiming to stay below market rates so that existing residents can return or new low-to-middle income tenants can afford to move in.

Community Revitalization: Renovating a dilapidated property lifts up the whole neighborhood. It addresses issues like code violations or blight, increases curb appeal, and can reduce crime – all while maintaining a place for current community members to live. It’s a way to revitalize without gentrifying, when done thoughtfully.

Investor Upside: From an investor’s perspective, this is still a classic value-add multifamily investment . The property’s net operating income and value typically increase post-renovation (through improved occupancy, slightly higher yet still affordable rents, and lower maintenance costs going forward). Investors can achieve solid returns via higher valuation or cash flow, even while charging below-market rents, because the basis (purchase price + rehab cost) remains low.

As Mario Brown of Affordable Upstate puts it, “We operate at the intersection of profit and purpose… This efficient approach allows us to deliver substantial returns to our investors while charging below market rent to future residents, demonstrating that community support and financial success can go hand in hand.” In short, preserving NOAH can satisfy both the social impact goals and the financial objectives of savvy real estate investors.

Case Study: Vista West III – Preserving NOAH in Berea (Greenville County)

A prime example of NOAH revitalization is Affordable Upstate’s Vista West III project in Berea, SC , an unincorporated community in greater Greenville. This project involves two aging apartment complexes (one 14-unit building at 100 Lily St. and a 24-unit building at 2001 West Parker Rd) that backed up to each other and together comprised 38 units . These properties were classic NOAH – older, naturally affordable apartments serving lower-income residents in the Berea area. As Greenville’s growth began to put pressure on nearby neighborhoods, Affordable Upstate saw an opportunity to preserve these units as long-term affordable housing while significantly improving their condition .

Vista West III is undergoing a full “gut” renovation – essentially turning a tired 1970s-era complex into a “like-new” community. Everything from the plumbing and electrical systems to the windows and fixtures are being replaced or upgraded. “This is going to be a brand-new complex,” noted Matt Foster of NOAH Property Management in a site visit, emphasizing that most typical rehabs only do superficial upgrades, whereas here “everything’s going to be brand new.” The renovation is comprehensive: modern interiors (new appliances, finishes, and energy-efficient systems), improved insulation and windows for lower utility costs, repaired structure and roofing, refreshed exteriors and landscaping, and added amenities for safety and comfort. By upgrading all 38 units at once (rather than a building-half at a time), the project also gains efficiency and will present a fully improved community to returning tenants on day one.

Crucially, Affordable Upstate made tenant well-being a top priority throughout this process . All residents living in the complex were temporarily relocated before construction, with zero evictions . The company partnered with a nonprofit, Southeast Affordable Housing Administration (SAHA), to subsidize the relocation of residents to nearby properties within Affordable Upstate’s portfolio during the rehab . SAHA even covered moving expenses and subsidized the displaced tenants’ rents at their interim housing. This ensured that the renovation could proceed with vacant units (speeding up construction) without displacing the families – they had somewhere safe and affordable to live in the meantime. Furthermore, all former residents were given guaranteed preference to return to the upgraded apartments once Vista West III is complete. In fact, as soon as residents saw the fast progress on-site, many got on the waitlist excited to come back. This commitment to the community is summed up by Mario Brown, co-founder of Affordable Upstate: “This isn’t just about redeveloping buildings; it’s about rebuilding trust, pride, and opportunity in the community.”

When Vista West III reopens, the rents will remain below the market rate for comparable new units , fulfilling the NOAH preservation promise. By charging affordable rents (while still a modest increase from pre-renovation levels to reflect the property’s improved quality), the project can attract a stable tenant base from the local workforce and ensure the original community members aren’t priced out. The property will be managed by NOAH Property Management, which takes an innovative, resident-centric approach . For example, NOAH Property Management will report residents’ on-time rent payments to credit bureaus to help boost their credit scores, and it offers a deposit alternative program to reduce upfront cost burdens for renters. These measures improve residents’ financial stability – a meaningful quality-of-life upgrade beyond just the fresh paint and new appliances.

Overall, the Vista West III rehab is transforming an outdated complex into “Greenville’s premier affordable housing community” . It exemplifies how thoughtful apartment renovations (or “housing rehab investments”) can preserve NOAH units in an appreciating market. In Berea, a submarket that has historically been one of Greenville’s affordable areas, this project prevents the loss of 38 affordable homes and sets a standard for rehabilitating aging apartments without losing sight of the existing residents. It’s a win-win for the neighborhood: the community gets a facelift and safer, higher-quality housing, while longtime residents retain an affordable place in that community .

Improving Quality of Life While Boosting Returns: The Benefits of NOAH Revitalization

Revitalizing NOAH properties like Vista West III carries significant benefits for both tenants and investors:

Better Housing for Tenants: Residents enjoy a higher quality of life after renovation – units are safer, cleaner, and more modern. Features like new HVAC systems, updated kitchens, and repaired infrastructure mean fewer maintenance issues and healthier living conditions. Upgraded properties are often more energy-efficient, lowering utility bills for tenants. In Vista West III’s case, residents will return to like-new apartments with modern comforts, without a sharp rent increase keeping them out.

Community Stability and Pride: Rather than being displaced, tenants can remain in their neighborhood and even take pride in the renewed community. Preserving affordable housing keeps families and social networks intact , avoiding the disruption that comes when people are forced out by rising rents. The surrounding community also benefits from the elimination of blight – a renovated property can inspire broader neighborhood improvements and reduce crime, fostering a sense of safety and pride locally.

Extended Building Lifespan: A comprehensive rehab effectively resets the clock on an older building. By addressing structural issues and replacing aging systems, investors can extend the property’s useful life by decades , safeguarding these affordable units for the next generation of renters. This prevents the loss of affordable stock to physical deterioration. In other words, rehab = preservation of housing that would otherwise eventually become uninhabitable or ripe for luxury redevelopment.

Maintained Affordability: Crucially, the rents are kept affordable relative to the market. In a rising-demand area like Upstate SC, this means working-class individuals and families (teachers, service industry workers, retirees, etc.) have access to quality housing at a attainable cost. Affordable Upstate’s strategy demonstrates that it’s feasible to offer upgraded apartments at below-market rents if the acquisition and rehab are managed wisely . This model directly addresses the regional shortage of affordable units and helps prevent rent spikes that lead to displacement.

Attractive Returns for Investors: From an investment perspective, NOAH preservation can be quite lucrative when done at scale. Value is created through forced appreciation – the renovations increase property value and allow slightly higher (but still modest) rents, improving cash flow. Because the properties were acquired at low cost, the post-renovation value often significantly exceeds the total project cost, boosting equity . Investors in Affordable Upstate’s projects, for example, see both financial returns and “social returns.”

There’s also less competition in this niche; not all investors are willing to put in the effort for socially conscious rehabs, so those who do (with the right expertise) can find great deals. Additionally, occupancy in these revamped affordable communities tends to be very high (given the huge demand for affordable housing), leading to stable income streams. The Vista West III project illustrates this balance: by concentrating the renovation in a tight timeframe and utilizing partnerships to lower costs, the developers can deliver solid returns to passive investors while still charging below-market rents .

A Smart, Impactful Investment Strategy for Upstate SC

Revitalizing naturally occurring affordable housing is not only a socially responsible endeavor – it’s also a financially smart strategy for passive real estate investors , especially in growing markets like Upstate South Carolina. By focusing on NOAH preservation and value-add multifamily apartment renovations , investors like Affordable Upstate are effectively addressing the region’s housing affordability crisis and capitalizing on a sustainable business model. As Greenville and its suburbs expand, demand for quality workforce housing is surging, yet new supply at affordable price points is scarce. This puts well-located Class B/C properties in the Upstate in a sweet spot for rehabilitation and repositioning.

The approach championed by Mario Brown and his team marries “profit and purpose,” demonstrating that you don’t have to sacrifice returns to do the right thing. Investors who participate in these housing rehab investments are essentially investing in the community’s future while diversifying their portfolio with income-producing assets. Over time, this strategy can help preserve the character and diversity of neighborhoods in Greenville County by ensuring that long-term residents aren’t pushed out by redevelopment. It also aligns with growing investor interest in ESG (Environmental, Social, and Governance) and impact investing – putting capital to work in ways that yield positive social outcomes alongside financial gains.

In conclusion, preserving and revitalizing NOAH properties is a win-win strategy . It protects critically needed affordable housing stock , improves living conditions for residents, and delivers competitive returns through savvy value-add execution. The Vista West III case study in Berea showcases how this can be done: with planning, partnership, and a commitment to keeping housing attainable. As Upstate SC continues to grow, doubling down on NOAH preservation will be key to inclusive prosperity. For passive investors looking for stable returns with upside potential – and the knowledge that their investment is making a positive impact – NOAH revitalization projects offer an ideal opportunity to do well by doing good . By revitalizing yesterday’s apartments for today’s families, investors like Affordable Upstate are proving that quality affordable housing can be saved, improved, and kept affordable , to the benefit of all stakeholders involved.

Workforce Housing vs. Class A Apartments: Why “Affordable” Matters for Investors

mario@affordableupstate.com (Mario Brown) — Wed, 21 May 2025 17:46:49 GMT

Workforce Housing vs. Class A Apartments: Why “Affordable” Matters for Investors

What Are Class A vs. Class B/C Apartments?

In multifamily real estate, properties are commonly classified by quality and price point. Class A apartments are the luxury units – typically newer buildings with high-end amenities, prime locations, and top-tier rents. These might be downtown high-rises or upscale suburban complexes built in the last 10-15 years. By contrast, Class B and Class C apartments (often called “workforce housing” or the “ missing middle ” of the housing market) are more modest, naturally affordable units . They are usually older properties (think 1980s-2000s builds for Class B, even older for Class C), with fewer frills and more basic finishes. Rent prices for Class B/C apartments are lower, targeting middle-income households rather than high earners. In essence, workforce housing represents that middle segment between subsidized low-income housing and luxury developments – providing decent, accessible homes for the average worker.

Tenant demographics differ between these classes. Class A tenants often include young professionals, executives, or affluent downsizers who can afford premium rents for upscale amenities and locations. Class B/C tenants are typically middle-income workers – teachers, nurses, police officers, retail managers, manufacturing technicians – essential community members who earn roughly 60% to 80% of area median income . These residents seek safe, clean housing within their budget, often near employment centers. They may not need a rooftop pool or concierge service, but they value affordability and reasonable quality. Understanding these distinctions is key for investors, as it sets the stage for differences in demand, rent growth, and investment performance between luxury and workforce multifamily properties.

Rent Levels and the Affordability Gap

One striking difference is the rent price gap between luxury Class A units and naturally affordable Class B/C units. Nationally, Class A apartments command significantly higher rents – often hundreds of dollars more per month. In mid-2023, Cushman & Wakefield reported the average rent premium for Class A over workforce housing to be about $650 more per month ( multifamily.cushwake.com ). Even when luxury landlords offer concessions or discounts, the price difference remains substantial. This means a family renting a Class B apartment might pay, say, $1,200 per month, whereas a comparable Class A unit in the same city could be $1,850+. For many middle-income renters, “trading up” to luxury is financially out of reach . As a result, they tend to stay in Class B/C housing, keeping demand high.

In markets like Greenville–Spartanburg, SC , this affordability gap is evident. The influx of new upscale developments has pushed average asking rents in the Upstate South Carolina region to around $1,333 per unit as of late 2024 ( whosonthemove.com ). Those new deliveries are mainly Class A projects with high-end finishes. Meanwhile, older and modest properties remain much more affordable – often several hundred dollars below that average. The “missing middle housing” (duplexes, fourplexes, garden apartments, etc.) has seen little new construction in recent years, so existing Class B/C units face diminishing supply . In fact, CBRE research notes that over 100,000 older affordable units are removed from the U.S. market each year (due to obsolescence or redevelopment) stessa.com . This shrinking supply of workforce housing, combined with the rent gap, creates a classic supply-demand imbalance : plenty of renters need mid-priced homes, but new supply is mostly luxury. For investors, this means workforce housing properties often enjoy less pricing pressure and more consistent tenant demand than their pricier Class A counterparts.

Occupancy Trends: Stability in Workforce Housing

One of the biggest advantages of Class B/C multifamily is its track record of high occupancy and stable demand . Because they serve an “essential” slice of the renter pool, workforce housing properties typically see lower vacancy rates than luxury complexes. For example, prior to the pandemic, vacancy rates in Class B and C apartments were at all-time lows (around 5%) and remained in the low single digits ( stessa.com ). Even during economic swings, many renters simply cannot afford to leave workforce housing – there aren’t cheaper alternatives that offer the same quality of life. This keeps occupancy elevated. By contrast, Class A buildings experience more churn; renters have more options (including homeownership or moving to cheaper units if budgets tighten).

Recent data underscores this resilience. In 2024 , despite a flood of new apartments hitting the market, Class B units led the nation in occupancy gains. By the end of 2024, Class B apartments reached about 95% occupied , slightly outpacing Class A (94.5%) and Class C (94.8%) nationally ( yieldpro.com ). This was a notable shift – historically Class C (the cheapest segment) often had the highest occupancy, but the strong absorption of mid-tier units has pushed Class B to the top. In effect, workforce housing is staying full even while luxury lease-ups compete to find tenants . Industry analysts attribute this to the broad renter base for affordable units and the fact that new supply is overwhelmingly targeting the high end , leaving mid-priced rentals undersupplied . Even with a 50-year high in overall apartment construction deliveries in 2024, the rebound in demand has been strongest in Class B properties.

In Upstate South Carolina , a similar pattern appears, albeit with local nuances. The Greenville-Spartanburg market has been booming with new development (over 1,300 new units delivered in late 2024 alone ), which caused a temporary uptick in vacancy as those units lease up ( whosonthemove .com ). Overall market occupancy in the region hovered in the high-80s to around 90% during that supply wave. However, it’s important to note that much of the new supply is Class A luxury , which typically opens with some empty units as they attract renters. The underlying demand for workforce housing remained robust – Class B/C communities in the area generally stayed near full, as local workers and new migrants sought affordable places to live. In fact, Colliers reports that after years of rapid building, strong absorption by late 2024 actually boosted the Upstate’s overall occupancy above 89% for the first time since 2022 , suggesting the market is quickly soaking up new units thanks to population growth . For passive investors, the takeaway is that well-located Class B apartments tend to have steady, reliable occupancy . Fewer empty units means more consistent cash flow and less revenue lost to vacancies.

Rent Growth and Returns: “Affordable” Doesn’t Mean Less Profitable

There’s a misconception that because workforce housing charges lower rents, it must yield lower returns. In reality, “affordable” does not mean unprofitable . Investors often find that Class B/C properties can deliver very competitive returns , thanks to solid rent growth and higher initial cap rates (pricing). Rent trends in recent years illustrate how mid-tier apartments can hold their own. Coming out of the pandemic, luxury Class A rentals did see a spurt of high rent growth in 2021–2022 (as affluent renters rushed back to cities and new upscale supply was absorbed). By early 2023, Class A annual rent growth nationally was about 5.7% year-over-year , slightly ahead of Class B’s ~4.6% growth ( realpage. com ). However, that gap didn’t last. As economic conditions normalized and a wave of new Class A supply hit the market, luxury rent growth cooled . Meanwhile, Class B rent growth stayed more steady . By mid/late 2024, data showed Class B outpacing Class A in rent gains – for example, through August 2024, Class B effective rents were up ~2.5% year-to-date, versus ~2.0% for Class A ( alndata .com ). In other words, the once red-hot luxury segment slowed to a modest growth rate, while the workforce segment kept chugging at a similar or better pace.

Why is this important for investors? Steady rent growth coupled with high occupancy means reliable income streams . Class A assets might boast higher absolute rents, but they also can experience rent volatility – soaring in boom times but flattening or even declining when supply outstrips demand. We see this in many Sun Belt markets where thousands of new upscale units forced Class A landlords to offer free rent and concessions in 2023–2024 ( mrisoftware.com ). Class B owners, by contrast, seldom need to give large concessions; their rents are already at a value point that draws consistent demand. Additionally, initial cap rates (investment yields) on Class B/C properties are often higher than on trophy Class A buildings. An investor might acquire a workforce housing complex at a, say, 5.5% capitalization rate, whereas a luxury asset in the same city might trade at 4.5%. The higher yield, combined with stable rent growth, can produce strong cash-on-cash returns. And if the investor adds value (through renovations or better management), workforce housing offers upside potential as well – upgrading an outdated Class B property can push rents up while still keeping units affordable to a broad renter base. Many Class B/C deals are value-add opportunities that benefit from improving the property (new appliances, updated flooring, etc.) and capturing higher rents, all while demand remains deep.

Moreover, exit strategies for workforce housing can be favorable. Because these assets provide solid yield and social impact, there’s robust demand from other investors and even institutional funds for stabilized affordable multifamily. Recent years have seen growing recognition that the “missing middle” segment is under-served and poised for long-term demand , which can support favorable valuations. All told, a well-bought Class B/C asset can appreciate in value through income growth and cap rate compression, delivering a compelling total return that rivals or exceeds more glamorous properties. The key is that returns in workforce housing are driven by occupancy and long-term demand, not just luxury rent premiums .

Recession Resilience and Risk Factors

Perhaps the most compelling reason passive investors gravitate toward workforce housing is its recession resilience . While no real estate investment is completely “recession-proof,” history shows that mid-priced apartments weather economic storms better than luxury complexes . During the 2008 Great Financial Crisis (GFC), for instance, many high-end apartment projects struggled with vacancies and rent concessions as job losses hit young professionals and would-be homebuyers. Workforce housing, however, outperformed during the GFC , maintaining more stable occupancy and collections ( multifamily.cushwake.com ). The logic is simple: even in a downturn, people need affordable places to live. If anything, demand for affordable rentals can increase in tough times – renters downgrade from Class A to Class B , or delay plans to buy a house and stay in an apartment. Higher-income tenants have options (and may leave expensive rentals), but middle-income renters are more likely to keep renting what they can afford , prioritizing housing payments in their budgets. This dynamic insulates Class B/C to a degree. A pre-pandemic Fannie Mae analysis projected that in a hypothetical recession scenario, Class A vacancies could exceed 10% while Class B/C vacancies would remain in the mid-5% range ( stessa.com ). In other words, luxury apartments might see double the vacancy rate of workforce housing during a downturn, due to their greater economic sensitivity.

We saw a real-world test of resilience during the 2020 COVID-19 downturn as well. Initially, there were concerns about rent payments across all classes. But over time, Class B/C properties held up relatively well in occupancy. In fact, after the initial shock, many Class A urban buildings faced more vacancy (as remote workers left expensive cities or sought more space), whereas suburban Class B apartments filled up with renters seeking cheaper housing. Fast forward to the recent cycle: in early 2024 the apartment market experienced a soft patch (occupancy nationally dipped to ~94.1% in Q1 2024 amid record new supply) ( yieldpro.com ). Yet even then, workforce housing demand remained steady , and by Q4 2024 overall occupancy rebounded to ~94.8% – near long-term norms – largely thanks to strong absorption in Class B units ( yieldpro.com ) . Class B was the first segment to fully bounce back , rising by 0.8 percentage points in occupancy by late 2024, more than the gains in Class A or C. This illustrates a key point for risk: Class A has a higher “beta” – it’s more volatile with the market cycle – while Class B/C has a stabilizing effect in a portfolio .

That said, investors should also understand the risks unique to each class . Class A investments carry the risk of oversupply (developers love building luxury units when capital is cheap, which can lead to competitive leasing and rent softness). They are also more economically sensitive – a tech company layoff or a slowdown in professional hiring can quickly hit luxury rentals in a city. Class B/C investments , on the other hand, face risks around tenant financial stability and property age . Workforce renters may have less savings and could be more vulnerable if they lose jobs (so diligent tenant screening and diversified employment bases are important). The properties themselves are older, which means higher maintenance and capital expenditure needs – roofs, HVAC, and appliances may need replacement, and dated interiors might require upgrades to remain competitive. However, these risks can be mitigated with proper asset management and by investing in strong locations.

Notably, in a place like Greenville-Spartanburg , many Class B/C communities benefit from being in proximity to stable employment hubs (manufacturing plants, logistics centers, hospitals, universities). For example, the Greer submarket (between Greenville and Spartanburg) has seen explosive job growth in manufacturing (BMW, Michelin, etc.) and revitalization of its downtown – attracting an influx of middle-income workers. Those workers need housing they can afford, and they provide a reliable tenant base for well-kept Class B apartments. As long as an investor conducts thorough due diligence – ensuring the property is in a strong job market with diversified employment – the risk of prolonged vacancies in workforce housing remains relatively low.

Upstate South Carolina Case Study: Resilient Demand in a Growing Market

The Greenville–Spartanburg, SC region (often called “Upstate SC”) offers a timely example of how workforce housing can shine, especially in high-growth markets. Over the past few years, Upstate SC has been one of the fastest-growing areas in the country . From 2023 to 2024 alone, South Carolina’s population grew by 1.7%, adding 91,000 new residents ( dew.sc.gov ). Spartanburg’s metro area was the 10th-fastest growing in the U.S. , expanding by about 2.7% in one year . Much of this growth is driven by domestic migration – people moving in from other states for jobs, affordability, and quality of life. Greenville and Spartanburg counties consistently rank among the top destinations for inbound moves.

That trend has only accelerated in recent years. According to U-Haul’s 2024 Top 25 Growth Metros report, Greenville ranked among the top 10 most moved-to metro areas in the U.S. , reflecting its growing national appeal as a relocation destination ( uhaul.com ). Additionally, South Carolina ranked as the #1 growth state based on one-way U-Haul rentals, surpassing traditional leaders like Texas and Florida. This data reflects a clear and ongoing migration boom—especially from high-cost states—bringing thousands of new residents to the region who need access to quality, affordable housing.

This surge of population has translated into strong housing demand at all levels . Developers responded by building thousands of new units – however, the vast majority of new apartment construction in Upstate SC has been Class A luxury communities . As mentioned, roughly 20,000 new units were delivered in the past five years ( whosonthemove.com ), pushing the market’s total inventory to new heights. These shiny new complexes typically target top-of-market rents (often catering to newcomers used to big-city rents, or local high earners). While absorption of new units has been good, the heavy supply caused the overall vacancy rate to tick up temporarily in 2023-2024. Yet, tellingly, workforce housing properties in the region remained near full . Local operators of Class B apartments frequently report waitlists or quick lease-ups for any vacant units, because demand from local workers far exceeds supply in the mid-priced rental category. The Greenville area’s average rent of ~$1,300 covers a wide spectrum – new downtown flats might be $1,800+, whereas an older suburban 2-bedroom might rent for $1,000 – and it’s that latter segment that sees endless renter demand .

Upstate South Carolina’s economy provides a sturdy foundation for workforce housing. The region’s job growth is diversified across manufacturing, logistics, healthcare, and professional services . Companies like BMW, Volvo, Michelin, and Boeing (nearby in North Charleston) have created a manufacturing boom, while Greenville’s emergence as a tech and education hub draws young talent. These industries employ thousands of “missing middle” income earners – folks who earn too much to qualify for subsidized housing but not enough to comfortably afford a luxury apartment or single-family home. For instance, a BMW assembly technician or a hospital nurse might earn $50k-$70k per year; they prefer rental options in the $900-$1,300 per month range, which is the sweet spot for Class B/C units. As a result, occupancy in well-managed workforce housing around Greenville and Spartanburg tends to stay high even if new luxury flats down the road are offering a free month’s rent to fill units . The region’s multifamily reports note that multifamily demand is bolstered by the area adding over 30,000 residents per year via in-migration ( whosonthemove.com ) – a trend that is forecast to continue. This influx supports steady rent growth . Indeed, despite a lot of construction, the Upstate saw rent growth remain steady (though moderate) even as supply peaked , a sign of the persistent demand.

For passive investors considering markets like Greenville-Spartanburg, the implication is clear: investing in workforce housing aligns with powerful demographic and economic tailwinds . You are effectively supplying a product that the market sorely needs – clean, affordable homes for the very workers fueling the region’s growth. Not only can this strategy yield stable financial returns, but it also carries a feel-good component of community impact (housing teachers, nurses, and factory workers who make the local economy run). It’s truly a case where you can do well and do good.

Impact and “Missing Middle” Opportunity

Beyond the numbers, many passive investors are drawn to Class B/C multifamily for the tangible impact it has. Investing in workforce housing often means revitalizing older apartment communities , improving living conditions for residents, and preserving affordability in a market that might otherwise price out essential workers. It’s sometimes called “missing middle housing” investment because it fills the gap between low-income housing (often government-subsidized) and luxury developments. By putting capital into these properties, investors help ensure that cities maintain a stock of reasonably priced housing for middle-class families . This has socio-economic benefits: it stabilizes communities, reduces commuter burdens (people can live near where they work), and supports local businesses with a steady customer base of nearby residents.

From an investment perspective, focusing on the missing middle can also be seen as forward-thinking and defensive . With housing affordability a growing challenge nationwide, there is increasing political and social attention on preserving and creating workforce housing. Some cities and states are even offering incentives for developing or maintaining affordable units. While our focus here is on naturally occurring Class B/C stock (not deed-restricted affordable housing), the broader trend is favorable – affordable rentals will remain in high demand, and policies may further encourage investment in this segment . By contrast, luxury housing can sometimes face community pushback (the proverbial “luxury condos while locals can’t find housing” narrative) and is more dependent on a smaller pool of well-heeled renters.

It’s also worth noting that workforce housing demand is less “fad-driven.” Luxury properties might try to one-up each other with fancy amenities (from golf simulators to dog spas), essentially engaging in an arms race to justify premium rents. While that can attract a segment of renters, it also adds to operating costs and can become outdated as trends change. Workforce housing, on the other hand, competes on fundamentals: price, location, and basic quality of life . Investors can add value by ensuring properties are safe, clean, and well-managed – things that never go out of style for renters. Simple upgrades like energy-efficient appliances, on-site security, or playgrounds for kids can enhance appeal without breaking the bank. And because the tenant base is broad , marketing a Class B community is about reaching the general workforce population, which is always renewing itself (new graduates, people moving for jobs, etc.). This contributes to lower leasing risk and turnover costs relative to a niche luxury building that might cater to a narrow demographic.

Conclusion: Steady Returns and Community Wins

For passive real estate investors seeking stable, recession-resilient opportunities , workforce housing (Class B/C multifamily) presents a compelling case. The key differences between Class A luxury and Class B/C housing – in tenant profile, price point, and performance – all point toward the latter being a dependable workhorse in an investment portfolio. Class A apartments can certainly thrive in boom times, but they also ride more ups and downs. Class B/C properties offer steadier occupancy, reliable rent collections, and a deep pool of demand that persists through economic cycles . As one industry blog succinctly put it, while no asset is entirely recession-proof, workforce housing tends to be less susceptible to downturns because demand for an affordable place to live “remains constant” ( colonyhillscapital.com ). Landlords of these properties often enjoy lower vacancy and consistent cash flow , even when luxury projects in the same city are struggling to fill units.

In today’s market (2023–2025), data shows that workforce housing is holding strong . Occupancies for Class B/C are in the mid-90% range in many areas, often outperforming Class A on this metric ( yieldpro.com ). Rent growth, while modest compared to the frenetic pace of 2021, has been positive and stable for affordable units – and even outpacing Class A in some cases ( alndata.com ). Meanwhile, macro trends like net migration to affordable regions (the Southeast, Midwest, etc.) and a shortage of middle-income housing supply act as tailwinds for the sector. In places like Upstate South Carolina, the story is especially upbeat: rapid population and job growth, coupled with a high cost-of-living influx from relocators, is keeping demand high for every decent, affordably priced apartment .

Crucially, “affordable” does not mean sacrificing returns . Investors in Class B multifamily can achieve healthy yields and long-term appreciation, all while mitigating downside risk . The combination of reasonable purchase prices (often below replacement cost per unit), value-add potential, and enduring renter demand often leads to a favorable risk-adjusted return profile. And beyond the numbers, there’s a pride of ownership in providing quality housing to the backbone of the community – the nurses, teachers, technicians, and service workers who make the city hum. This community impact angle resonates with many passive investors who want their capital to do more than just generate profit.

In summary, when comparing workforce housing vs. luxury apartments , the differences are clear: Class A offers glitz and higher highs, but Class B/C offers grit and consistent performance . For passive investors educated on these distinctions, investing in workforce housing can be a savvy strategy – leveraging recession resilience, stable occupancy, and solid returns, all while addressing a critical housing need . In a world of flashy developments, the unassuming Class B apartment community might just be the quiet hero of your portfolio, delivering steady cash flow through good times and bad. Affordable does not mean less profitable; in fact, it can mean durability and dependability – qualities any investor should value in the long run.

Sources

Sources:

SC Dept. of Employment & Workforce – 2024 Population Estimates: Migration Drives Rapid Growth in South
U-Haul Growth Index 2025 – U-Haul Growth Metros and Cities of 2024: Dallas Top Metro for In-Migration
Colliers South Carolina – Q4 2024 Greenville-Spartanburg Multifamily Report
Cushman & Wakefield – U.S. Multifamily MarketBeat Q2 2023
YieldPro Magazine – "Class B Apartments Lead Occupancy Increases" (Jan. 30, 2025)
ALN Apartment Data – "Uneven Performance Between Price Classes" (Aug. 2024)
Colony Hills Capital Blog – "Why Invest in Workforce Housing" (Feb. 15, 2024)
Veritas Equity Partners – "Workforce Housing: A Smart Investment"
Stessa (with Fannie Mae insights) – "What is Missing Middle Housing?" and market performance trends (2019–2020)

Bracing for Stagflation: 5 Ways We’re Supporting Tenants & Safeguarding Investments

mario@affordableupstate.com (Mario Brown) — Mon, 05 May 2025 19:24:51 GMT

Bracing for Stagflation: 5 Ways We’re Supporting Tenants & Safeguarding Investments

As we navigate the challenges of stagflation, I want to provide insight into how Affordable Upstate is addressing these economic headwinds. With a portfolio of 1,500 affordable units across the Carolinas and an average effective rent of $930, our residents are squarely in the crosshairs of the current economic environment. These units serve households earning modest incomes, many of whom are particularly vulnerable to rising costs and stagnant wages. Below, I’ll share the five key initiatives we’ve implemented to support our residents while protecting your investments.

1. Open and Transparent Communication

We believe that communication is the foundation of strong tenant relationships. To ensure residents feel supported, we provide 24/7 customer service, allowing them to speak with a real person at any time about their account, questions, or concerns. This level of accessibility fosters trust and helps us address issues before they escalate into missed payments or disputes.

How This Benefits You:

Reduced Risk of Disputes: Proactive communication minimizes tenant misunderstandings and potential conflicts.
Improved Retention Rates: When residents feel heard and supported, they are more likely to renew their leases.
Operational Efficiency: Resolving issues quickly reduces administrative burdens and keeps operations running smoothly.

2. Flexible Payment Terms

Our Flex Pay program allows tenants to align their rent payments with their income schedules—whether weekly, bi-weekly, or monthly. This flexibility has been transformative for our residents and our portfolio: currently, one-third of our tenants participate in Flex Pay, resulting in a significant reduction in evictions and improved cash flow predictability.

How This Benefits You:

Lower Eviction Costs: Fewer evictions mean reduced legal fees, repair expenses, and unit downtime (saving an average of $3,500 per eviction).
Stable Occupancy Rates: Flex Pay helps tenants stay in their homes during financial challenges, reducing turnover and vacancy rates.
Consistent Cash Flow: Flexible payment schedules ensure more timely rent collection, even during economic uncertainty.

3. Positive Credit Building

Through our initiative to report on-time rent payments to credit bureaus, we empower tenants to improve their credit scores. This program has already delivered significant results: last year alone, 35 residents became “credit visible” for the first time, with average credit score increases of 25–44 points. Many residents have transitioned from subprime to prime credit status as a result.

How This Benefits You:

Increased Tenant Loyalty: Residents who see tangible financial benefits from renting with us are more likely to renew their leases.
Stronger Communities: Financially stable tenants contribute to a healthier rental community with fewer delinquencies.
Enhanced Reputation: Offering programs that improve residents’ financial well-being positions us as a landlord of choice in competitive markets.

4. Advanced Tenant Screening Practices

To ensure we attract financially stable tenants while minimizing turnover risks, we’ve adopted Payscore, an automated income verification tool that uses bank-verified data rather than outdated or fraudulent documentation like pay stubs. Payscore allows us to assess applicants’ financial capacity in real-time with unparalleled accuracy.

How This Benefits You:

Payscore Report | Click to Enlarge

Reduced Rental Fraud Risks: Payscore’s 100% bank-verified data ensures we only approve qualified applicants.
Faster Leasing Decisions: Automated verification speeds up the approval process, reducing vacancy periods.
Higher Quality Tenants: With improved screening accuracy, we maintain a portfolio of financially reliable residents.

5. Prioritizing Retention Through Efficient Property Maintenance

We know that timely maintenance is critical for tenant satisfaction and retention. Across our portfolio, our average work order completion rate stands at an impressive 93%, reflecting our commitment to prompt service. Additionally, we’ve partnered with the nonprofit organization SAHA to deploy case managers onsite who provide personalized support for residents facing unique challenges—connecting them to resources like food programs or rent assistance.

How This Benefits You:

Lower Turnover Costs: Satisfied tenants are more likely to renew leases, reducing costly vacancies and turnover expenses.
Stronger Tenant Relationships: Personalized support from SAHA case managers fosters goodwill and community stability.
Preserved Property Value: Prompt maintenance ensures properties remain in excellent condition, protecting your investment over the long term.

Navigating Challenges with Confidence

While stagflation presents undeniable challenges, it also offers opportunities for innovation in property management. By combining open communication, flexible payment options, tenant credit building, advanced screening tools like Payscore, and efficient maintenance practices with nonprofit partnerships like SAHA, we are not only mitigating risks but also positioning ourselves as leaders in this space.

These initiatives directly benefit you by reducing operational costs, improving tenant retention rates, ensuring consistent cash flow, and safeguarding the long-term value of your investments.

Thank you for your continued trust in us as we navigate these uncertain times together. If you have any questions about these strategies or would like more details on how they’re impacting your investments, please don’t hesitate to reach out.

How Property Owners Can Reduce Evictions and Strengthen Communities

Thu, 03 Apr 2025 17:11:02 GMT

How Property Owners Can Reduce Evictions and Strengthen Communities

Evictions aren’t just a legal hassle or a line on a landlord’s spreadsheet—they’re a human crisis that ripples from one person to entire communities. At Affordable Upstate, we’ve seen the eviction problem up close. Managing over 1,500 naturally occurring affordable housing (NOAH) units across Greenville and Upstate South Carolina, we deal with evictions weekly. It’s not a challenge we can eliminate entirely, but as our CEO Mario Brown said on the Simple Civics: Greenville County podcast , “ We cannot solve the problems of evictions, but we can impact it. ”

Listen to Podcast

In 2024, we’ve proven it—slashing eviction filings with practical solutions that property owners like you can use too. Here’s how the eviction crisis unfolds—and how we’re fighting back.

The Person: A Permanent Mark

Imagine you’re a renter in one of our communities. Life throws a curveball—maybe a temporary job loss, a medical emergency, or a car breakdown—and suddenly, you’re behind on rent.

An eviction filing lands on your doorstep. Even if you scrape together the funds to resolve it, that filing sticks with you like a permanent tattoo. It’s a mark that can haunt you for years, making it harder to secure a new place to live. In Greenville County, where 20% of renters faced an eviction filing between March 2020 and August 2024, this isn’t a rare story—it’s a common one.

The impact is immediate and profound. Kids might have to switch schools mid-year, disrupting their education. Stress piles up, affecting mental and physical health. For some, it’s a direct path to homelessness. This isn’t just a statistic; it’s a neighbor, a barista who pours your morning coffee, or a teacher shaping your child’s future. The personal toll is steep, and it’s where the eviction crisis begins.

The Community: A Shared Burden

Zoom out a bit, and you see how one eviction ripples through a community. When families are uprooted, neighborhoods lose stability. Schools see higher turnover, small businesses feel the pinch as service workers struggle to stay local, and the fabric of a place like Greenville starts to fray. Mario put it perfectly on the podcast:

“ If we care about our service workers and our baristas, we care about our children’s teachers, the folks that actually need to access attainable housing, we should care about this issue because this impacts them. ”

The economic fallout is real too. When housing costs spike due to instability, that $3 latte becomes $3.50. It’s not just about compassion—it’s about the sustainability of the vibrant Upstate community we all love. Evictions don’t just displace people; they strain the very ecosystem that keeps our region thriving.

The City, State, and Beyond: A Systemic Challenge

Step back even further, and the picture gets bigger. Greenville County’s eviction filing rate hovers around 22% —nearly three times the national average of 8%. South Carolina as a whole struggles with some of the highest eviction rates in the country. This isn’t just a local quirk; it’s a systemic issue tied to inconsistent processes, economic pressures, and a lack of affordable housing options. The variability in how evictions are handled—depending on the county, the magistrate, or even the day of the week—only deepens the problem. It’s a mess that costs cities and states in lost productivity, increased homelessness, and overburdened social services.

Nationally, experts like Matthew Desmond have pointed out that evictions are a cause of poverty, not just a symptom. When one in five renters in a place like Greenville faces this threat, it’s a signal that the system isn’t working—for anyone .

The Property Owner: Caught in the Middle

Now, let’s bring it home—the property owners. At Affordable Upstate, we’re not just observers; we’re in the thick of it. Evictions cost us too, and not just emotionally. Mario shared on the podcast that each eviction process runs between $3,000 and $5,000—about 18% of our operational leakage. That’s lost rent, attorney fees, and the downtime of turning over a unit. It’s a hit we feel every time, and it’s one we’d rather avoid.

But here’s the kicker: those costs don’t just disappear. They get passed on. A unit that could’ve rented for $1,000 might now need to be $1,050 or $1,100 to offset the loss. That’s the harsh reality of multifamily ownership—sustainability demands revenue, and evictions chip away at it. For us, it’s not about wanting to evict; it’s about needing to keep the lights on, pay our own mortgages, and maintain quality housing for the majority of residents who do pay on time.

What Property Owners Can Do

How We’re Making an Impact

At Affordable Upstate, we’re not here to pretend evictions can be wiped out entirely—non-payment happens, and we’ve got to keep our properties sustainable. But we can shrink the numbers, and in 2024, we’ve done just that. Partnering with NOAH Property Management, we’ve rolled out strategies that have cut eviction filings across our 1,500+ units, saving families from displacement and keeping our bottom line healthier. Here’s how we’re doing it—and how you can too:

#1 - Flex Pay Program: Payments That Fit Real Life
Rent’s due on the 1st, but paychecks don’t always line up. That’s why we launched Flex Pay, letting residents choose to split their rent into weekly or bi-monthly payments upfront. It’s not a reactive fix—it’s a proactive option they can sign up for from day one. In 2024, NOAH’s impact report showed that residents enrolled in Flex Pay had a 33% lower eviction rate than those on standard monthly schedules. Why? Because smaller, regular payments match how most people actually earn—week by week, not month by month.

How to Implement It: Start by surveying your residents—ask how they’d prefer to pay. Set up a simple system (we use property management software to automate it) where they can opt in at lease signing. Offer two or four payments per month, and stick to a firm schedule. It’s not about leniency after the fact; it’s about building flexibility into the structure. The result? Fewer missed payments, fewer filings, and happier tenants.

#2 - Positive Payment Reporting: Turning Rent Into a Reward
Renters pay on time, but their credit scores don’t budge—meanwhile, a single eviction filing can tank them. We flipped that script by reporting on-time rent payments to credit bureaus, giving residents a tangible boost for consistency. In 2024, this move correlated with a double-digit drop in late payments across our portfolio—fewer of which escalated to evictions. It’s a win-win: residents build financial stability, and we get steadier cash flow.

How to Implement It: Partner with a service like Rent Dynamics or LevelCredit (we use a similar platform) to report payments to Equifax, Experian, and TransUnion. It’s a small upfront cost—usually a few bucks per unit—but the payoff is huge. Promote it to your residents as a perk, and watch engagement climb. Pro tip: Make it opt-in to keep it simple, and highlight the credit-building angle in your marketing.

#3 - Proactive Communication: Catching Problems Early
Evictions don’t start with a filing—they start with a missed payment. Our team at NOAH doesn’t wait for that to spiral. We reach out within days of a late payment, offering flexible terms (like a short-term payment plan) or connecting residents to local resources—think rental assistance programs or nonprofits we’ve vetted. In 2024, this approach kept hundreds of families in their homes, reducing our eviction filings by a measurable chunk compared to prior years. It’s not about coddling; it’s about catching the issue before it’s a crisis.

How to Implement It: Train your staff to act fast—set a policy to contact residents within 48 hours of a missed payment. Build a cheat sheet of local aid options. Offer a one-time payment plan—say, splitting the overdue amount over two months—but tie it to a signed agreement. It’s low-cost, high-impact, and keeps units occupied instead of vacant.

These aren’t pie-in-the-sky ideas—they’re tested, data-backed moves that made 2024 a turning point for us. NOAH’s impact report shows we’ve slashed eviction filings year-over-year, not by avoiding tough calls, but by giving residents tools to succeed and ourselves a buffer against turnover costs. For us, that’s $3,000 to $5,000 saved per avoided eviction—money we’d rather reinvest into our properties than lose to legal fees and downtime.

Whether you manage 10 units or 1,000, the principles scale: align payments with reality, reward consistency, and intervene early. You’ll keep more residents housed, cut your own losses, and prove that multifamily ownership can be profitable and purposeful. At Affordable Upstate, we’re living proof it works.

Make sure to check out the media below!

Trailside on Main Beautification Project: Planting Roots and Highlighting the Daniel Morgan Trail

Tue, 25 Mar 2025 14:02:04 GMT

Trailside on Main Beautification Project: Planting Roots and Highlighting the Daniel Morgan Trail

At Affordable Upstate, we’re passionate about creating not just homes but vibrant, thriving communities. Our recent beautification initiative at Trailside on Main in Spartanburg, SC exemplifies this mission by combining the power of collaboration with impactful improvements to enhance quality of life.

This 138-unit community, located alongside the historic Daniel Morgan Trail’s River Birch section, is uniquely positioned to offer residents something extraordinary: direct access to one of the region’s most exciting trail systems.

A Trail at Your Backdoor

The Daniel Morgan Trail is more than just a scenic trail; it’s a gateway to healthier lifestyles and stronger connections. Currently undergoing exciting extensions, the trail will soon connect key areas like West Blue Ridge Drive and Poinsett Highway, adding infrastructure such as new bridges and an e-bike charging station. These improvements aim to make the trail safer, more accessible, and better integrated into daily life.

For Trailside on Main residents, having such a remarkable resource right at their doorstep is a game-changer. Whether it’s walking, jogging, cycling, or simply enjoying the green spaces, the trail offers countless opportunities to embrace an active, healthy lifestyle. Projects like this align perfectly with our vision of creating spaces where residents can thrive, connect, and enjoy the natural beauty of their surroundings.

Planting Trees, Growing Connections

Two weeks ago, we joined forces with local partners to kick off our beautification project. Volunteers from Spartanburg Community College, PAL Spartanburg, and the Noble Tree Foundation teamed up to plant 19 trees along the River Birch Trail. Under the guidance of horticulture expert Dr. Kevin Parris, these trees were carefully selected to enhance the area’s ecosystem and create a lush, green canopy for everyone to enjoy.

This effort isn’t just about aesthetics—it’s about fostering a sense of connection and community. Improved green spaces contribute to mental well-being, promote healthier lifestyles, and encourage shared purpose among residents and neighbors.

Why Beautification Projects Matter

Creating affordable housing is only part of the mission at Affordable Upstate. The real magic happens when we work to enhance the spaces in which our residents live and grow. Projects like the one at Trailside on Main aren’t just about aesthetics (though the improved views are undeniably enjoyable). These efforts directly contribute to the quality of life for residents and the neighborhood.

Here’s what improved green spaces mean for our community:

Improved Mental Well-being – Studies consistently show that green spaces reduce stress, promote relaxation, and enhance overall happiness.
Healthier Lifestyles – With easy access to trails, residents can enjoy walking, jogging, or cycling right outside their doorstep.
Stronger Communities – Collaborative efforts like tree planting foster a sense of belonging and shared purpose.

At Trailside on Main, we’re taking these benefits a step further by incorporating more tie-ins to the trail system and introducing a new mural on-site in the coming months.

Community Spirit in Action

None of this would have been possible without the collective efforts of our partners and supporters. A heartfelt thank you goes to Pamela Adams-Singleton of Dream Designs & Innovations for implementing the visionary design of this project. Her expertise brought our dreams of a greener, more welcoming Trailside on Main to life.

We are also deeply grateful for the support of the Noble Tree Foundation , whose generous grant funded this mission. Their commitment to Spartanburg’s ecological well-being is making a tangible difference.

To the students at Spartanburg Community College and every volunteer who lent their time and energy, thank you for being part of this transformation. Your hands-on involvement has not only beautified this space but also strengthened our bonds as a community.

Looking Ahead

The work at Trailside on Main is just the beginning. As the Daniel Morgan Trail continues to grow and expand, it will play an even greater role in shaping the Spartanburg community—connecting neighborhoods, promoting sustainability, and improving quality of life.

For us at Affordable Upstate, this project represents more than just affordable housing. It’s about creating spaces that empower lives, foster connections, and strengthen neighborhoods. Trailside on Main is a testament to what’s possible when we combine vision, collaboration, and a commitment to community.

What Is Affordable Housing? | A Guide for Investors

mario@affordableupstate.com (Mario Brown) — Tue, 18 Feb 2025 18:21:56 GMT

What is Affordable Housing
A Guide for Investors

By: Mario Brown

Affordable housing is rapidly becoming one of the most pressing issues in real estate today. For investors, this often-overlooked sector presents a rare win-win opportunity—one that combines meaningful social impact with sustainable financial returns. But what is "affordable housing," and how can you get involved? This guide walks through what defines affordable housing, the market challenges it addresses, and how investors can take part in creating brighter futures while growing their portfolios.

What is Affordable Housing?

Affordable housing refers to residential units designed for individuals and families earning below the median income of a given area. The general benchmark used is that housing costs, including rent and utilities, should not exceed 30% of household income to be considered affordable.

Programs promoting affordable housing often target workforce sectors—teachers, healthcare staff, retail workers—who are vital to a community’s functioning yet struggle to afford market-rate housing. Developers and property managers may work within frameworks such as the Low-Income Housing Tax Credit (LIHTC) program to attract funding while keeping rent manageable for tenants.

Creating affordable housing is not only about lowering rents. It involves thoughtful planning to provide quality, safe, and accessible housing that creates a foundation for long-term stability for residents.

The Problem at Large

The demand for affordable housing far exceeds the current supply. Recent data from the National Low Income Housing Coalition reveals that no state in the U.S. has an adequate supply of affordable rental homes for its low-income residents.

Contributing factors include rapid population growth in urban and suburban areas, rising land and construction costs, and stagnant wage growth. Even as municipalities attempt to address the crisis, zoning restrictions and limited funding often pose significant roadblocks.

The shortfall in affordable housing is no longer isolated to major cities; it's a nationwide challenge that demands both local and national solutions.

Zooming in Locally: The Issue in Upstate South Carolina

Affordable housing is particularly relevant in regions like Upstate South Carolina. A growing job market, driven by expanding industries, has brought an influx of new residents to the area. While this growth is undeniably positive, it has also placed strain on the local housing market. Median home prices in cities like Greenville have surged, pushing many out of reach for middle and low-wage workers.

For residents of Upstate SC, affordable housing isn't just a need—it’s a foundation for sustaining the region's impressive economic trajectory. Employers depend on a stable local workforce, and affordable housing plays a major role in ensuring those workers can live near their jobs. If workers struggle to find affordable places to live, businesses will face challenges in recruiting and retaining employees.

The Opportunity for Investors

The affordable housing sector represents a unique intersection of financial returns and socioeconomic impact. For real estate investors, it offers advantages that are often harder to achieve in conventional market-rate housing.

Financial Benefits

Stable Demand: Affordable housing consistently outpaces supply, ensuring ongoing demand.
Tax Incentives: Programs like LIHTC and Opportunity Zones provide substantial tax benefits to developers and property owners.
Resilience in Downturns: Unlike luxury or higher-end rentals, affordable housing shows strong performance even during economic downturns, as the demand for affordable units remains high.

Social Impact

Affordable housing investments allow you to create meaningful change in your community. By providing stable, quality housing, you’re empowering residents to focus on building brighter futures—whether through career advancement, education, or simply a greater sense of security.

Further, community-driven investments contribute to accelerating regional growth by supporting workforce stability and reducing social disparities. This ethos is a central value of organizations like Affordable Upstate, which bridges the gap between investor interests and community needs.

The Transformative Impact on Residents

For residents, having access to affordable, quality housing is a lifeline. It improves their financial well-being, health, and sense of belonging in a community. Here's how affordable housing transforms lives:

Financial Stability: With lower housing costs, residents can allocate more of their income to essentials like food, healthcare, and education while also building savings.
Improved Quality of Life: Affordable housing ensures access to clean, safe, and well-maintained residences, which significantly impacts both physical and mental health.
Proximity to Opportunity: Affordable housing is often strategically located near schools, public transportation, and work hubs, giving residents access to opportunities that might otherwise be out of reach.

For low- to moderate-income families, the chance to live affordably means more than just having a roof over their heads—it can redefine what’s possible for their future.

How to Get Started as an Investor

If you're ready to explore affordable housing investment opportunities, here are a few steps to help you get started.

1. Partner with Expert Organizations

Work with entities like Affordable Upstate, which specializes in bridging investors and community-driven projects. They’ll guide you through identifying opportunities, maximizing financial benefits, and ensuring ethical practices in affordable housing investments.

2. Explore Tax Credit Programs

Gain a solid understanding of the Low-Income Housing Tax Credit (LIHTC) and how it can offset your investment costs. Collaborate with industry professionals who have experience navigating these programs.

3. Assess Local Needs

Focus your efforts on regions with a clear demand for affordable housing, like Upstate SC. This grassroots approach increases the impact of your investments and connects you to a community that values your contributions.

4. Prioritize Sustainability

Invest in housing developments that incorporate eco-friendly materials and energy-efficient designs. Sustainable projects reduce long-term operating costs while aligning with modern environmental goals.

5. Stay Committed to the Community

Treat tenants as stakeholders. Learn their stories and ensure property management reflects the shared mission of creating stable, high-quality living environments.

Building Better Futures

Affordable housing investment is more than a financial opportunity; it’s a chance to contribute to a solution that strengthens communities, boosts regional economies, and reshapes lives. For investors ready to make a difference, the time to act is now.

Affordable housing isn’t just a moral imperative—it’s a smart, forward-thinking play that delivers value for years to come.

How Flexible Payments Boost Affordable Housing & Economic Mobility

mario@affordableupstate.com (Mario Brown) — Tue, 28 Jan 2025 13:58:18 GMT

How Offering Flexible Payment Plans Can Boost Affordable Housing & Economic Mobility

By: Mario Brown, Jan. 13, 2025

A staggering 48% of renters in the United States are classified as "cost-burdened," spending over 30% of their income on housing. The rising cost of living, combined with income instability, has forced many renters into financial difficulties that make conventional rent payment structures unsustainable. This financial stress often leads to high eviction rates, poor credit scores, and significant barriers to upward economic mobility for renters, particularly those in affordable housing.

Flexible rent payment systems offer a promising solution by aligning payment schedules with residents' income patterns. This article explores their role in reducing eviction rates and improving economic stability, drawing on data from Noah's innovative Flex Pay program.

HOW FLEXIBLE PAYMENT SYSTEMS WORK

Flexible payment plans are designed to accommodate renters' financial situations, allowing them to pay in smaller, manageable increments rather than a lump sum at the start of the month. These systems often leverage technology to simplify payment scheduling and offer options such as:

Split Payments: Renters can divide their payment across multiple paydays.
Customized Due Dates: Payment schedules align with renters’ biweekly or weekly income cycles.
Automatic Withdrawals: Payments are deducted directly from bank accounts to ensure timeliness.

Programs like Noah's Flex Pay take these innovations one step further by integrating advanced tech solutions that offer landlords predictability while minimizing financial strain for tenants.

The Problem with Traditional Rent Structures

Traditional rental agreements require tenants to pay rent in full by the first of the month, a rigid system that often clashes with renters' earning patterns. According to data by the Zillow Group, nearly 50% of renters are paid weekly or biweekly rather than monthly, creating a timing mismatch. Other challenges exacerbating financial stress include:

Income Volatility: Especially prevalent among gig workers and freelancers, with unpredictable earnings impacting payment capacity.
Rising Cost of Living: Rent prices in urban areas show year-over-year increases of 10% or more, outpacing wage growth.
Unexpected Expenses: Emergencies like medical bills or car repairs frequently leave renters short on funds.

The consequences are stark. Renters unable to meet payment deadlines face late fees, poor credit scores, tenuous landlord-tenant relationships, and, ultimately, eviction.

Statistical Snapshot from Noah's Flex Pay

Data from Noah’s properties highlights the impact of these challenges:

Eviction Rates for Non-Flex Participants averaged between 12-20% across various locations.
Eviction Rates for Flex Participants, on the other hand, dropped significantly to zero in multiple properties including Quail Ridge and Vista West.

This evidence underscores the advantages that flexible payment systems can provide to struggling renters.

The Impact of Flexible Payment Plans on Economic Mobility

1. Reduced Eviction Rates

Flexible payment systems, such as those implemented through Noah’s Flex Pay, directly address the root causes of eviction. For instance, Azalea Apartments, which reported a 12.12% eviction rate for non-Flex participants, saw eviction rates halved among Flex participants. With such systems, tenants are less likely to default entirely on rent payments, managing their obligations in smaller, more achievable increments.

2. Improved Credit Health

By avoiding eviction and late fees, renters can protect their credit ratings. Programs like Noah's Flex Pay allow tenants to maintain payment discipline, ensuring timely rent payment without resorting to high-interest payday loans. Improved credit health expands renters' financial opportunities, from qualifying for future housing to accessing affordable loans.

3. Financial Stability and Mobility

Aligning rent payment schedules with wage cycles reduces cash flow mismatches, giving renters more room to manage other expenses like healthcare or education. The ability to stay housed securely supports tenants in focusing on long-term goals such as upskillling, saving, or transitioning to higher-income opportunities, fostering broader economic mobility.

4. Strengthened Tenant-Landlord Relationships

Tenants facing financial hardship are more likely to engage collaboratively with landlords who offer flexibility. Noah's data also shows that landlords incorporating Flex Pay see fewer turnover costs, improved tenant satisfaction, and fewer disputes—strengthening the landlord-tenant bond.

Challenges and Considerations

While flexible payment systems present many benefits, they are not without challenges:

Added Fees and Costs

Third-party platforms like Flex or Domuso typically charge tenants additional fees for the convenience of flexible payments. Noah's implementation minimizes these costs by offering in-house Flex Pay options supported by landlords.

Systemic Economic Constraints

Flexible payments are not a solution to systemic issues such as stagnant wages or inadequate supply of affordable housing. They are a valuable tool but require complementary policy measures, including rent control and wage growth initiatives.

Limited Adoption

Small-scale landlords often lack the financial bandwidth or technical resources to implement flexible payment systems. Expanding access requires broader industry adoption backed by government incentives.

Real-Life Applications and Success Stories

1. Azalea and Mauldin Meadows (Noah Properties)

Residents at these properties reported significant reductions in eviction rates due to Flex Pay. At Mauldin Meadows, eviction rates for Flex participants were slashed to 12.82%, compared to 16.80% for non-Flex users.

2. The Irvine Company

A California-based property management company rolled out flexible rent payment systems across their portfolio, resulting in a 20% decrease in late payments and turnover rates—a key indicator of tenant satisfaction.

3. Related Companies

By offering Rent Café, tenants were allowed to auto-schedule payments tailored to their payday schedules. This initiative led to a 30% increase in on-time rent payments and enhanced landlord cash flow stability.

These examples showcase how tailored payment flexibility can yield tangible outcomes for both tenants and landlords.

A Vision for the Future of Housing Payments

The adoption of flexible rent payment systems isn’t just a technological upgrade—it’s an essential step in creating equitable and sustainable housing for all. By addressing renters' financial constraints, flexible payment plans reduce evictions, improve economic mobility, and foster a stronger sense of community among residents and landlords alike.

Noah’s Flex Pay data demonstrates how progressive payment solutions can transform lives. If you’re a housing developer, non-profit, or landlord interested in implementing these programs, reach out to our team for a consultation. Together, we can design better systems for economic stability and housing security.

Learn more about Flex Pay and how it can work in your housing development program. > Contact us today to get started!

Analyzing U-Haul's 2024 Migration Trends and Their Impact on Greenville’s Real Estate and Affordable Housing

Mon, 13 Jan 2025 15:40:10 GMT

Analyzing U-Haul's 2024 Migration Trends and Their Impact on Greenville’s Real Estate and Affordable Housing

By: Mario Brown, Jan. 13, 2025

The 2024 U-Haul migration study identifies South Carolina as a prime destination, ranking first among states with the highest net gain of one-way U-Haul trucks, highlighting Greenville within the top 10 growth metros nationally. This spotlight on Greenville not only underscores the area's increasing desirability but also signals significant shifts in the real estate market, particularly in the affordable housing sector. This comprehensive analysis explores the implications of these migration trends and offers insights into how they might reshape Greenville's socio-economic landscape.

Migration Trends Exacerbating the Greenville, SC Affordable Housing Crisis

Significance of U-Haul’s Migration Data

U-Haul’s migration trends, derived from the net gain of one-way truck rentals, serve as a robust indicator of migratory patterns across the United States. For 2024, South Carolina led this index, followed by states like Texas, North Carolina, and Florida, which consistently attract new residents due to their economic opportunities and quality of life.

Economic Attractiveness

Southern states, including South Carolina, have become magnets for relocation, partly driven by their economic resilience and job opportunities. Industries such as technology, manufacturing, and automotive sectors are burgeoning, offering substantial employment opportunities while maintaining a lower cost of living compared to traditional hubs like New York and California.

Housing Market Dynamics

The influx of residents, as demonstrated by U-Haul’s data, is impacting Greenville’s housing market by driving up demand and consequently prices. For example, over 51.7% of U-Haul movers in South Carolina were arrivals, meaning half of al Uhaul's booked where coming in from a different state.

NOAH’s User Demographics and Data-Driven Approach

In collaboration with NOAH Property Management , Affordable Upstate leverages a robust, data-driven strategy to refine our multi-family portfolio and management approach. Esteemed for its innovative and tech-driven methodologies, NOAH plays a pivotal role in shaping the landscape of unsubsidized affordable housing in Greenville, SC.

Managing all our properties with a strong emphasis on economic mobility, NOAH ensures that our multifamily portfolio aligns with current migration trends, but most importantly community needs. Their significant role extends across 23 communities and involves managing housing and community engagement for approximately 3,550 residents, highlighting their substantial impact and commitment to enhancing the local housing landscape.

Conducting Our Own Research

To better understand the demographic shifts affecting Greenville and to tailor our services appropriately, we have conducted extensive research by analyzing traffic on NOAH’s website over the last 12 months. This data collection effort helps us pinpoint exactly where interest in our properties is originating from, providing us with invaluable insights on lead source targeting and demographic shifts.

User Traffic Data from NOAH’s Website Over the Last 12 Months By State:

Aligning with Broader Trends

Our findings closely mirror the migration trends highlighted by U-Haul’s 2024 report, which underscores Greenville's growing appeal. Notably, there's a substantial influx of users from states such as New York, Virginia, and Florida—regions known for their higher cost of living. This correlation not only validates our strategic directions but also reinforces the need for preserving and developing affordable housing solutions that cater to a diverse clientele, seeking more affordable living conditions and a better quality of life.

National Recognition: Greenville's Rank as a Top Living Destination

We've long known of Greenville's rising popularity, as evidenced by its consistent ranking among some of the top places to live in the United States. This is further validated by recent accolades such as being named one of the top five places to live by U.S. News & World Report, which praises Greenville for its vibrant arts scene and expanding job market ( read more ). Additionally, Travel + Leisure highlighted Greenville as the best place to live in America, noting its friendly atmosphere and affordable living ( read more ). These recognitions reflect the city’s growing reputation as a desirable destination not just for its affordability but also for its overall quality of life.

Affordable Upstate’s Perspective

As a key player in the affordable housing sector, Affordable Upstate leverages these migration trends to refine and validate its strategic approach to housing development. The data not only confirms the growing demand for affordable housing but also highlights the urgency of expanding our development efforts to prevent housing shortage crisis already present in Greenville, SC.

Strategic Approach

Migration Trends Exacerbating the Greenville, SC Affordable Housing Crisis

Our commitment is towards developing housing solutions that are both affordable and sustainable. This means building homes that are economically viable for residents and environmentally responsible. We prioritize using innovative building techniques and sustainable materials that help in reducing the overall environmental impact.

Community-Centric Development

Our development strategy emphasizes community integration. We prioritize the creation of housing that supports a sense of community and fosters connections among residents. This involves designing developments that are not only housing solutions but also community enhancers, featuring communal spaces, access to public services, and amenities that encourage social interaction and community engagement.

Addressing the Affordable Housing Crisis in Greenville

The influx of new residents, as highlighted by the latest migration trends, is amplifying the demand for affordable housing in Greenville. This growing need underscores a crucial challenge: current development trends are predominantly skewed towards high-end residential projects that are financially out of reach for the broader population. This mismatch between supply and demand is exacerbating the housing affordability crisis, making it increasingly difficult for many residents to find suitable and affordable housing.

The Importance of Addressing Housing Affordability

Affordable housing is more than just a basic necessity; it's a foundational component of economic stability and quality of life in any community. As Greenville continues to attract a diverse range of residents, the availability of affordable housing becomes critical to sustaining the city’s growth in an inclusive manner. Without adequate affordable housing, the city risks increased displacement and segregation, which can lead to broader social and economic divides.

Policy Advocacy and Development Initiatives

In response to this pressing need, Affordable Upstate is at the forefront of advocating for and implementing strategies that support the development of affordable housing. Recognizing the pivotal role that housing policy plays in preserving affordable housing, we are actively pushing for several key initiatives:

Tax Incentives for Developers: By advocating for tax incentives, Affordable Upstate, in collaboration with the Southeast Affordable Housing Association ( SAHA ), aims to make it more financially viable for developers to invest in affordable housing projects. These incentives can help offset the higher costs associated with building affordable units, making such projects more attractive and feasible for developers.
Zoning Law Adjustments: We are working with local government bodies to adjust zoning laws to allow for higher density housing developments. These changes are crucial for maximizing land use and making it easier to build affordable housing units within the city limits. By promoting smarter, density-friendly policies, we can significantly increase the supply of affordable homes.
Direct Support for Affordable Housing Projects: Affordable Upstate collaborates with various stakeholders to secure direct funding and support for affordable housing initiatives. This includes accessing grants, public-private partnerships, and community investments that directly contribute to the development of affordable units.

Why This All Matters

The efforts to expand affordable housing in Greenville are not just about constructing buildings but are central to fostering a community where every resident has the opportunity to live affordably and comfortably. These initiatives contribute to the economic diversity and vibrancy of Greenville, making it a more attractive place for people from all walks of life. As we continue to witness an influx of new residents, the focus on affordable housing ensures that Greenville grows as a cohesive, inclusive community that offers opportunities for all its residents.

By addressing these issues head-on, Affordable Upstate is committed to shaping a future where affordable housing is not an afterthought but a cornerstone of urban development strategy. This commitment to affordable housing is essential for maintaining Greenville's diversity and vibrancy, ensuring it remains a welcoming community for everyone.

Building Tomorrow's Greenville Together

The convergence of migration trends and housing demands presents a unique opportunity for visionary investors and community partners. Greenville stands at a pivotal moment – one where strategic investment in affordable housing can yield both social impact and sustainable returns.

In partnership with NOAH Property Management, we've built a robust foundation for creating sustainable, affordable communities that serve our diverse and growing population. Our data-driven approach ensures that every development not only meets current needs but anticipates future demands.

Looking Ahead

As Greenville continues to attract new residents and businesses, the decisions we make today will shape our community's future for decades to come. The opportunity before us isn't just about real estate development – it's about building a more inclusive, vibrant, and sustainable Greenville that works for everyone.

We invite forward-thinking investors, developers, and community partners to join us in this crucial mission. Together, we can ensure that Greenville's growth story becomes a model for balanced, sustainable community development that preserves affordability.

Contact our team today to explore how you can be part of Greenville's transformative journey toward inclusive growth and sustainable community development.

Transforming Berea, SC: Affordable Upstate’s Vision for a Thriving Community

Mon, 23 Dec 2024 13:40:23 GMT

Transforming Berea: Affordable Upstate’s Vision for a Thriving Community

At Affordable Upstate, we believe in transforming more than just properties; we aim to redefine communities. Recently, we acquired two properties in Berea, one at 100 Lilly Street and the other at 2001 West Parker Street. These 38 units are set to undergo an extraordinary transformation that will breathe new life into the area. Partnering with NOAH Property Management , led by CEO Matt Foster, we’re excited to share the progress, insights, and vision for this ambitious redevelopment project.

A Vision for Excellence

Mario Brown, CEO & Co-Founder of Affordable Upstate, recently visited the site to discuss the project’s goals and progress with Matt Foster. As Matt explained, this redevelopment goes far beyond typical cosmetic upgrades like new flooring and paint. “ This is going to be a brand-new complex, ” Matt shared, emphasizing that everything from mechanicals and windows to the exterior will be replaced. “ Typically, most rehabs are just flooring, new appliances, and repainting cabinets… Here, everything’s going to be brand new. ”

Watch Full Video!

Day Two and Momentum is Building

The project is currently in its demolition phase, with crews working diligently to strip the property down to its core. On just the second day of demo, significant progress is already visible. Within a week’s time, the entire corner of the complex will be cleared, paving the way for the next stage of construction—rebuilding from the ground up. The speed and precision of this phase highlight the project’s momentum and our commitment to delivering quality housing on an ambitious timeline.

Why Comprehensive Renovation Matters

One of the standout features of this project is our decision to renovate the entire complex at once, rather than piecemeal. Matt highlighted the benefits: “ This approach saves a lot in productivity and improves the tenant base. If you only did half the building, recruiting tenants at a newer price point becomes challenging while construction is ongoing in the other half. ”

While this approach may temporarily impact cash flow, the long-term advantages far outweigh the short-term inconveniences. Completing the project quickly means prospective tenants can see the full vision and move into a community that feels complete and cohesive from day one.

Resident Interest and Community Impact

The excitement about this redevelopment isn’t limited to our team. Two former residents recently stopped by the site after noticing the rapid progress and immediately asked to be placed on the waitlist to return. This kind of enthusiasm fuels our mission and reminds us of the deep connection people have with their communities.

As Matt explained, “ They want to move back here because they love the area, and they can see the vision we’re creating. ” We’ve started a waitlist to ensure these residents are among the first to call the new units home once completed.

A Strategic and Efficient Timeline

This ambitious project is slated for completion in just four months. According to Matt, the team plans to finish 6-8 units per month, while exterior renovations will be completed simultaneously. “ Exterior work will take about 4 to 6 weeks ,” Matt noted, adding that this streamlined approach allows us to showcase model units quickly, helping prospective tenants visualize their future homes.

This efficiency is made possible by leveraging strong relationships with material suppliers and contractors. “ We’re able to get materials at 40% off retail and have labor-only quotes from our contractors, ” Matt revealed. This strategic approach not only keeps costs down but ensures the highest quality finishes for our future tenants.

Building a Better Community

As Mario summarized, “ This isn’t just about redeveloping buildings; it’s about rebuilding trust, pride, and opportunity in the community. ” With every project, Affordable Upstate aims to create spaces where residents can thrive. These properties on Parker and Lilly Streets will exemplify how thoughtful, comprehensive redevelopment can elevate not just the physical environment but the lives of everyone who calls it home.

Stay tuned for more updates on this transformative project. We’re just getting started, and we can’t wait to share the journey with you.

Want to learn more about redeveloping workforce and affordable housing? Let’s connect and explore how we can create impactful projects together. Reach out to Affordable Upstate today to discover how we’re transforming communities—one property at a time.

Affordable Upstate Names Mario Brown as CEO: A Milestone in Leadership

Mon, 16 Dec 2024 16:08:04 GMT

Affordable Upstate Names Mario Brown as CEO: A Milestone in Leadership

Affordable Upstate is excited to announce an evolution in its leadership structure, with co-founder Mario Brown stepping into the role of Chief Executive Officer. This transition marks a significant milestone, emphasizing our continued commitment to sustainable, community-driven housing solutions and robust investor returns.

Since our founding in 2016, we’ve raised over $55 million in investor equity, generating strong returns and providing several successful exits for investors. Mario, who purchased his first multifamily complex in 2014, brings over a decade of multifamily investment experience and a strategic vision for scalable, cost-saving measures that directly enhance portfolio value and resident impact.

“Affordable Upstate was founded on the principle that affordable housing and strong investor returns can go hand-in-hand,” Mario stated. “Our future will build on this foundation with a focus on innovative, scalable solutions like N.O.A.H. and nonprofit partner Southeast Affordable Housing Administration . These initiatives allow us to implement cost-saving measures tailored to maximize portfolio value, enhance resident impact, and ultimately position us toward consistent performance with institutional-grade reporting standards. With a strengthened leadership team, we are better positioned than ever to meet the challenges of inflation.”

We’ve recently added key team members, including Chris Rawlings and Sam Gooding, to support growth and refinement. Chris Rawlings, with over 30 years of financial and strategic planning experience, previously served as Treasurer and Director of Corporate Accounting for Landmark Communications, Inc., bringing expertise in corporate finance and long-term growth. Sam Gooding, now an Asset Manager, has managed over $150 million in multifamily financing, specializing in asset stabilization and value-add strategies across the Southeast.

Brian Albers, Mario’s fellow co-founder and previously a principal at Affordable Upstate, will transition to a consulting role, continuing to support the firm’s mission through community-focused nonprofit partnerships. His ongoing involvement ensures continuity and alignment with our core values.

“As Affordable Upstate continues to scale, the team remains dedicated to responsible, community-centered investments that enhance quality of life while delivering robust, long-term returns for investors,” Mario said.

We’re proud to have this exciting leadership update featured in the GSA Business article .

Building Trust Through Community Amenities

Mon, 28 Oct 2024 13:06:03 GMT

Building Trust Through Community Amenities

A neglected swimming pool might seem like a small detail in the grand scheme of affordable housing. But at Paris Park, this pool represented something much deeper: a community's broken trust and lost hope. Its restoration tells a powerful story about our mission at Affordable Upstate—where preserving affordable housing means preserving dignity, community, and the places people call home.

The Weight of Broken Promises

For five long years, residents of Paris Park walked past their abandoned pool daily. What was once a gathering place had become a painful reminder of neglect: stagnant water, crumbling infrastructure, and overgrown vegetation. Like many Naturally Occurring Affordable Housing (NOAH) properties across the country, the pool stood as a testament to unfulfilled promises and diminishing community spaces.

Why a Pool Matters

When Affordable Upstate acquired Paris Park, we saw beyond the cracked concrete and broken filtration system. We saw:

Children who deserved a safe place to play
Families who needed a community gathering space
Residents who warranted proof that affordable housing can be quality housing
A community ready to rebuild trust, one project at a time

From Vision to Reality

The restoration wasn't just about repairs—though there were plenty. We tackled:

Major structural leaks that had plagued the pool for years
Complete overhaul of outdated filtration systems
Installation of modern safety features
Transformation of the surrounding area with new grills and furniture

But the real transformation happened in the community's spirit.

Today, the Paris Park pool area hums with life. Children splash in the crystal-clear water while parents chat on comfortable loungers. Weekend cookouts bring neighbors together at the new grilling stations. What was once a symbol of neglect has become the heart of the community.

The Bigger Picture: Preserving Community Through NOAH

This pool restoration embodies our approach to Naturally Occurring Affordable Housing:

Preservation isn't just about maintaining buildings—it's about maintaining communities
Affordable housing shouldn't mean sacrificing quality or dignity
Small improvements can have profound impacts on residents' daily lives
Trust is rebuilt through actions, not promises

Looking Forward

At Affordable Upstate, we believe that everyone deserves a home they can be proud of. The Paris Park pool project proves that preserving affordable housing means more than keeping rents stable—it means investing in the spaces that turn housing into communities.

As we continue our mission across the Upstate region, we carry this lesson with us: Every repair, every upgrade, and every improvement is an investment in people's lives and their sense of belonging. Because at the end of the day, that's what truly makes a house a home.

Revitalizing Multi-Family Properties: Terrain at Haywood Transformation

Wed, 11 Sep 2024 14:46:56 GMT

Revitalizing Multi-Family Properties: Terrain at Haywood Transformation

AU Perspective on Affordable Housing

At Affordable Upstate, we believe that affordable housing doesn’t have to mean settling for less. Too often, affordable housing is associated with rundown buildings, unkempt amenities, and neglected landscaping. We challenge that notion. Everyone, regardless of income, deserves a home that is clean, safe, and well-maintained—one that stands shoulder to shoulder with market-rate apartments in terms of quality.

At Terrain at Haywood, our vision was not just to improve property values, but to breathe life back into a community that had long been neglected. When we first acquired the property, it had fallen into a state of severe disrepair. What had once been a thriving apartment complex had become marred by crumbling infrastructure and unsafe conditions. Our mission was clear: transform Terrain at Haywood into a place that residents are proud to call home.

A Property in Disrepair

When we first arrived at Terrain at Haywood, it was clear that the property had suffered from years of neglect. The buildings, once full of potential, were now marked by cracked siding, structural deterioration, and water damage that had gone unchecked for too long. The walkways and staircases were unsafe, the landscaping was overgrown, and the general condition of the property left residents with a sense of frustration.

But where others saw a rundown complex, we saw an opportunity to bring new life to the community. Our team set out to reverse the years of neglect, focusing on both the major structural issues and the smaller details that truly impact the day-to-day experience of living at Terrain. From the exteriors to the communal spaces, our goal was to create an environment where residents not only feel safe but are proud to call home.

Bringing Terrain at Haywood Back to Life

Our improvements at Terrain at Haywood are about much more than cosmetic fixes—they’re about restoring dignity, safety, and pride for the people who live there.

More Than Just a Parking Lot

One of the last major capital improvements at Terrain at Haywood was the resurfacing of the parking lot. Before our team stepped in, the lot was filled with cracks and potholes, making it difficult for residents to navigate. For some, it was a daily reminder of the neglect that had plagued the property for years.

Resurfacing the lot wasn’t just about laying new pavement. It was about changing how residents felt when they came home. Now, their journey home is smooth and welcoming, a simple yet impactful improvement that transforms the experience from frustration to comfort. It’s these details—what may seem like small changes—that make a big difference in everyday life.

Enhancing Natural Beauty

At Terrain, we’ve also focused on enhancing the natural charm of the property. The large trees and lush landscaping have always been standout features, but they needed care to thrive. Adding fresh mulch and maintaining these natural areas gives residents an outdoor space they can truly enjoy. These spaces aren’t just decorative—they’re part of what makes a home feel complete. Clean, well-kept landscaping offers a sense of pride and community, turning Terrain at Haywood into a place where people feel at ease and connected to their environment.

Rebuilding from the Ground Up

One of the most significant undertakings at Terrain at Haywood was addressing the severely deteriorated building exteriors, framing, and walkways. The original wood plank siding had suffered from years of water damage and neglect, leaving the structures vulnerable to further decay. To restore the buildings' integrity, we replaced the damaged siding with new, durable materials that not only look better but offer long-term protection against the elements.

The stairways and upper walkways were another major area of concern. The steel supports were corroding, the wood framing had warped, and many sections were unsafe for residents. We rebuilt these areas from the ground up, ensuring they are safe, stable, and built to last. These essential repairs—though often unseen—have had an enormous impact on the safety and quality of life for our residents.

A Glimpse Into What’s Next

We invite you to watch our video , where we share more about the journey of Terrain at Haywood and the impact of our NOAH program . From flexible rent payments to deposit alternatives and credit-building opportunities, we’re committed to enhancing the lives of our tenants in every way possible. Join us in our mission to redefine what affordable housing can be—clean, safe, and a place you’re proud to call home. JOIN NEWSLETTER

Affordable Upstate Featured on Fox Carolina for Preserving Affordable Housing in Greenville, SC

Thu, 05 Sep 2024 14:06:37 GMT

Fox Carolina: ‘We are impacting a problem:’ Upstate company works to preserve affordable housing

Kennedi Harris, Reporter | Fox Carolina | Sep. 4, 2024

GREENVILLE, S.C. (FOX Carolina) - The need for affordable housing in the upstate continues to grow more dire, as many renters are burdened by rising rent costs. Advocates are finding new ways to help alleviate some of the challenges.

“Everything was bad, terrible,” said Ivan Drummond describing his last apartment.

He lived there for 15 years, seeing new management come and go. But now—he’s at Paris Park Apartments.

“I mean it’s a better place, a whole lot-- 100 percent better,” he said.

He’s one of the first tenants in this newly renovated apartment complex, one of the most recent projects by Affordable Upstate.

“For us it’s about redefining affordable housing and really creating space where people can be proud of where they live,” said Mario Brown, the Co-founder of Affordable Upstate.

The mission-based real estate company renovates existing affordable options.

“Basically a property that runs the risk of being torn down or purchased by a New York or Los Angeles real estate firm that overdeveloped it so it’s to create rents that are unaffordable to the community that that property is in. so what we do is the opposite of that,” Brown explained.

The company revamped more than 600 apartment units across the upstate. With rents ranging from $950 to $1100.

“We can’t build them anymore. And when we do build them it costs a lot more than buying an existing one,” said Brown.

To make sure renters are able to stay in their units, Affordable Upstate has recently launched a property management company called Naturally Occurring Affordable Housing Property Management or NOAH, to help support tenants.

“To be able to offer them case management services, share some of the programs that they may not get with a traditional property management company,” said Matt Foster the CEO of NOAH Property Management.

READ THE FULL ARTICLE HERE

Revitalizing Paris Park: A Commitment to Affordable Housing

mario@affordableupstate.com (Mario Brown) — Tue, 18 Jun 2024 12:13:00 GMT

Revitalizing Paris Park: A Commitment to Affordable Housing

At Affordable Upstate, we recognize the critical need for quality, affordable housing in our community. Our mission is to preserve and enhance such housing, ensuring that every resident has access to safe, comfortable, and dignified homes. This mission is embodied in our latest project, the transformation of Paris Park, formerly known as Park West.

This 360-unit complex is undergoing a comprehensive transformation aimed at redefining affordable living.

Transforming Paris Park: The Vision and Execution

Exterior Enhancements: Creating a Welcoming Environment

The first step in our transformation of Paris Park was to improve its façade. The property’s notorious French Mansard roof, while architecturally unique, had become a challenge to maintain. We chose to embrace its character by painting the brickwork and coating the lower part of the Mansard roof. This not only enhances the building’s aesthetics but also provides a distinct border that balances its appearance. The replacement of gutters and the painting of shutters further contribute to a fresh, cohesive look.

These enhancements foster a sense of pride and belonging among residents, transforming what was once an eyesore into a modern and attractive feature. By improving the property's appearance, we signal to residents that their home is

cared for, which enhances community spirit and encourages residents to take greater pride in their surroundings. This newfound pride in their living environment strengthens the trust and relationship between tenants, owners, and property management.

Interior Renovations: Modernizing Living Spaces

Inside the units, our focus was on both efficiency and aesthetics. Kitchens and bathrooms were modernized with new HVAC and plumbing systems, ensuring residents enjoy comfortable and functional spaces. We introduced stylish paint packages, updated hardware, and attractive laminate countertops along with new appliances.

Modern interiors improve the quality of life for residents by providing a more comfortable and efficient living environment. What used to be "pain points" due to outdated and unreliable systems are now sources of comfort and convenience. These updates reduce maintenance issues, leading to lower operational costs and less disruption for residents. By investing in high-quality and cost-effective materials, we ensure lasting value and build trust with our residents, showing them that their needs and comfort are our priority.

Community Improvements: Enhancing Common Areas

Our commitment extends beyond individual units to the entire community. One often overlooked aspect is the mailbox area. At Paris Park, we provided a cover for the mailboxes to shield residents from inclement weather. We also repainted and pressure-washed the mailboxes, ensuring that even the smallest details reflect our dedication to improvement.

Small enhancements in common areas can significantly impact residents’ daily lives. By improving these spaces, we show residents that every aspect of their living environment is important to us. We focus on practical improvements that offer immediate benefits. These efforts enhance the daily living experience, foster a sense of care and attention, and strengthen the relationship between residents and management.

Pool Area Revitalization: Creating Functional Amenities

The pool area, once a neglected space, is being rejuvenated to meet EPA certifications. We are adding a patio with grills to transform it into a functional and enjoyable space for residents.

Functional amenities enhance community life by providing spaces for recreation and socialization. A well-maintained pool area can become a focal point for residents, encouraging a sense of community. By investing in the pool area, we ensure it meets modern standards for safety and functionality. Adding amenities like grills makes the space more versatile and inviting, promoting its use as a community gathering spot.

Our Vision for the Future

At the heart of our efforts is a deep commitment to our community. We recognize the importance of preserving affordable housing and the value it brings to residents. From rent relief programs to ensuring the longevity of our developments, we are dedicated to creating sustainable and thriving communities.

The redevelopment of Paris Park is a significant milestone in our journey. We are excited to see the positive changes take shape and look forward to completing the capital expense work over the next six months. Our goal is to achieve full stabilization, ensuring that Paris Park stands as a beacon of affordable housing done right.

Join Us on Our Journey

We invite you to learn more about our mission and vision at Affordable Upstate. Visit our website, affordableupstate.com , to explore our projects and discover how we are making a difference in the lives of our residents. Together, we can build a brighter future for our community, one affordable home at a time.

Our video provides a glimpse into the transformation of Paris Park and serves as an entry point to understanding the depth of our work. We encourage you to watch it and join us in our mission to preserve and enhance affordable housing for all.

People of Greenville: Podcast Feature on Mario Brown

Thu, 13 Jun 2024 05:03:10 GMT

People of Greenville: Podcast Feature on Mario Brown, Co-Founder of Affordable Upstate

Mario Brown , a Greenville native and co-founder of Affordable Upstate, has been pivotal in reimagining affordable housing. Through N.O.A.H. Property Management , an Affordable Upstate initiative, Brown has launched groundbreaking economic mobility-focused programs that ease economic burdens and enhance accessibility. Among these, the “Flex Pay” Program stands out, allowing residents to align rent payments with their pay schedules.

This program, together with Deposit Alternatives, Positive Credit Reporting, and effective tracking, underscores Brown’s dedication to empowering tenants and fostering economic mobility. His innovative approach not only uplifts the Greenville community but also sets a new benchmark for dignified and accessible housing solutions.

Mario serves as the Vice Chair of the Board of Directors for Homes of Hope and is a member of the Metropolitan Board of Directors for the YMCA of Greenville.

Click here to view the original post by People of Greenville.

Learn about investing with AU

Schedule a call with our team today.

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Who’s on the Move, Entrepreneur Minute Interview: Mario Brown, Affordable Upstate

Tue, 11 Jun 2024 05:15:05 GMT

Entrepreneur Minute Interview – Mario Brown, Affordable Upstate

June 11, 2024

Below is the full and separate conversation with Mario Brown on SoundCloud. You can also listen to this podcast on Apple and Spotify. Just search for the WhosOnTheMove SC podcast and please consider subscribing.

Please click here to view the full original article on this podcast feature by UpstateBizSC.

Learn about investing with AU

Schedule a call with our team today.

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A Local's Take on Greenville's Growth

mario@affordableupstate.com (Mario Brown) — Tue, 21 May 2024 22:29:32 GMT

A Local's Take on Greenville's Growth

For those of us who've grown up in Greenville the transformation of our city is nothing short of astounding. We've witnessed an incredible influx of new businesses, families, and opportunities that have injected vibrancy into our community. Yet, with this growth comes a challenge that touches the heart of what makes Greenville, well, Greenville: Affordable Housing. Our goal at Affordable Upstate is to ensure housing for current and future residents is available, accessible, and affordable.

Greenville's Economic Surge: A Double-Edged Sword

Our city's economic resilience is a point of pride. Job growth and a booming economy have become hallmarks of Greenville's success story, attracting attention far beyond our state lines. But this success has brought a shadow—the housing affordability crisis that's reshaping our neighborhoods and compromising the fabrric of the community we hold dear.

The Changing Face of Our Neighborhoods

Historically Black neighborhoods and long-standing communities are feeling the brunt of Greenville's revitalization. The drive towards modernization and the allure of downtown living have led to a housing squeeze, making it increasingly difficult for some residents to find affordable living spaces in areas they've long called home. It's a narrative that's become all too familiar in Nicholtown, a neighborhood that symbolizes the shifts happening across our city.

To illustrate this dramatic shift, consider a home on Underwood Ave, Greenville, SC. Just a decade ago, homes like this one were far more affordable, selling for a fraction of today's prices. Now, these same homes are selling for nearly four times what they used to. This steep increase in property values is pushing long-time residents out of their neighborhoods, further highlighting the urgent need for affordable housing solutions.

Efforts to Forge a Path Forward

Amidst these challenges, there's a concerted effort to bridge the gap between growth and affordability. The city, along with organizations like Homes of Hope has embarked on initiatives to increase the availability of affordable housing. Groundbreaking projects aim to provide a reprieve for families caught in the middle of the housing market turmoil, underscoring a commitment to keeping Greenville accessible to everyone.

Bridging the Gap: NOAH's Role in Greenville's Housing Solutions

In the midst of these efforts, NOAH Property Management emerges as a proactive force, directly addressing some of the core challenges highlighted above. Collaborating closely with Affordable Upstate, NOAH is not just another entity in the housing sector; it is a pivotal part of the solution, focusing on practical, immediate actions to make housing more accessible and affordable .

Introducing NOAH Property Management

NOAH Property Management is making significant strides towards more accessible and affordable housing options in Greenville. By introducing innovative payment solutions, deposit alternatives, and a commitment to positive credit reporting, NOAH is breaking down barriers and opening doors for many residents. These initiatives are vital steps in not just providing housing but enhancing the overall financial health and stability of our community members.

Marketing as a Community Service

NOAH brings innovative and market-rate marketing professionals to get its listings in front of low-to-moderate-income residents from the comfort of their homes, bringing convenience to those who need it most. Digital locks and technology allow community members to schedule self-showings at their convenience.

“Should our low and moderate-income neighbors have to take off work and spend their money on a wild goose chase for an affordable needle in a haystack? If a unit isn’t easily findable, it might as well not exist.” - Mario Brown

Toward a More Inclusive Greenville

Our actions—flex-pay, deposit alternatives, and positive credit reporting—are part of a broader commitment to ensuring that Greenville grows as a city that values inclusivity, opportunity, and economic mobility for all its residents. By directly addressing the financial hurdles many face in securing housing, NOAH is playing a crucial role in maintaining Greenville's identity as a welcoming home for everyone.

We invite the Greenville community to engage with and support these efforts. Together, we can create a more accessible, affordable, and supportive housing environment, ensuring that as Greenville continues to grow, it does so in a way that leaves no one behind.

Making Rent Work For Greenville - People Working In Greenville Often Can't Afford Rents; Affordable Upstate Provides Options

Thu, 02 May 2024 03:32:04 GMT

Greenville County making progress on monumental affordable housing deficit

Kathy Laughlin Marketplace Greenville | Greenville News Feature | April 29, 2024

If they follow conventional budgeting advice, two-thirds of the working residents in Greenville County – including new teachers in the public school system – should spend no more than $1,000 per month for rent.

But the median rent is $1,750 per month in Greenville, $1,695 in Taylors, $1,800 in Mauldin, and $1,495 in Spartanburg, according to recent data from Zillow online real estate marketplace.

“It's the best of times and the worst of times,” says Mario E. Brown, co-founder and principal of Affordable Upstate. “It's the best of times for folks relocating from other markets. They discovered my hometown, the place where we raise our kids and run our business.

“But it's the worst of times for folks who are here, who see the demand for apartments, the limited supply, and the high rents.”

Whether it’s 1969 federal legislation called the Brooke Amendment, pop-finance guru Dave Ramsey, or online tips from Chase personal banking … people are advised to spend no more than 25% to 30% of their income on housing.

This year the starting salary for a Greenville County Schools teacher with a bachelor’s degree is $47,738. So, the teacher’s rent should not exceed $995 per month (at 25% of annual income).

But teachers aren’t alone.

According to Affordable Upstate, most firefighters, auto mechanics, police officers and electricians in the area earn $54,000 or less per year. Administrative assistants and those who work in retail, food service or construction likely make less, closer to $27,000 per year.

All need housing at rents that mostly don’t exist.

READ THE FULL ARTICLE HERE

Lessons from Leadership Greenville: Leaders never stop learning

Sat, 27 Apr 2024 03:50:42 GMT

Lessons from Leadership Greenville:

Leaders never stop learning

Greenville News Feature | April 21, 2024

Roughly eight years ago, I participated in Leadership Greenville, a year-long program managed by the Greenville Chamber of Commerce.

As you may have guessed from the name, this program aims to teach people about leadership, hoping they will take more active roles in shaping the Greenville community. The class days were enlightening, intense, and inspiring, and I always felt exhausted afterward.

While thousands of graduates of Leadership Greenville have been present over the past 50 years, each person’s memories and experiences are different. Leadership Greenville brings together many people who may never meet in any other way. It also opens capable eyes to the needs within our community, a comprehensive way of understanding how one’s time, treasure, and talents align with real community needs.

For me, it led me into the world of affordable housing. As a real estate professional and broker, I determined that professional abilities developed within real estate were most needed within the affordable housing preservation space.

What did I learn from Leadership Greenville?

Leaders have a bias toward action. Getting caught up in planning and deliberation is easy, but true leaders understand the importance of moving forward, even in uncertainty. They recognize that inaction can be more costly than making an imperfect decision. This bias toward action doesn't mean recklessly jumping into things without thought; instead, it's about not getting paralyzed by overanalyzing.

Combining "partnering to your weaknesses" with "who not how" creates a powerful synergy for personal and organizational growth. This integrated strategy emphasizes the importance of recognizing one's limitations and the value of collaboration. You cultivate a culture of teamwork and mutual support by focusing on who can complement your weaknesses and who can best achieve specific goals. This leads to a more adaptable, resilient, and successful organization or project, where challenges are met with collective expertise and diverse strategies.

Leaders must have a forward-looking perspective, which involves understanding the dynamics of their industries, the global economy, and societal changes. This foresight comes from experience, strategic thinking, and continuous learning. By anticipating future trends, leaders can position their organizations to take advantage of emerging opportunities and to mitigate potential risks.

Aligning hearts and minds requires emotional intelligence: A leader with high emotional intelligence can recognize and understand his or her emotions and those of their team members. This awareness allows for better management of emotions, leading to a positive and productive work environment.

By aligning their hearts with those of their team, leaders demonstrates empathy. This means understanding team members' feelings, perspectives, and challenges, which fosters a supportive and trusting team culture. Aligning minds involves sharing a clear vision and inspiring the team toward common goals. It's about ensuring everyone understands the direction, their roles, and how they contribute to the bigger picture.

Leadership takes practice. It’s essential to reflect on each project or task completed. Consider taking 10 minutes each day to reflect on what you did throughout the day and list your successes and challenges. Write down some solutions to those challenges if they occur again.

Never stop learning: Even though you might help others develop their leadership capabilities, it's also essential to continue learning. By focusing on your professional development, you can show others you're committed to growth and progress. Additionally, you can learn new leadership development strategies to implement in the future.

Decisive leadership is a key to creating success and health in an organization. Leadership can constantly be developed and strengthened.

Mario Brown is a co-founder and principal of Affordable Upstate. He and business partner Brian Albers were named the Leadership Greenville Alumni of the Year in 2024 .

READ THE FULL ARTICLE HERE

Affordable Housing Impact Investing: A Community-Centric Platform

mario@affordableupstate.com (Mario Brown) — Tue, 02 Apr 2024 18:04:16 GMT

Affordable Housing Impact Investing
A Community- Centric Model

The Affordable Housing Platform

At Affordable Upstate, we champion the idea that the essence of a home reaches far beyond its physical boundaries. It's about cultivating a vibrant community ecosystem that supports, enriches, and uplifts every resident and brings affordable housing impact investing opportunities to community stakeholders. This philosophy drives our progressive, holistic approach to community housing, which extends well beyond providing shelter. We are committed to creating spaces where individuals are valued, and every residence is more than a place to live—it's a place to thrive.

"Our affordable housing portfolio's real value shines past profits, its true worth is in the tangible, economic mobility of our residents, our NORTH star."

- Mario Brown, Affordable Upstate Co-Founder

Affordable Upstate

Our journey starts with a solid foundation: our impact investors along with our expertise in affordable housing finance, acquisition and incentives. We're not just acquiring multifamily assets; we're nurturing communities, ensuring sustainability and growth through our strategic acquisitions and preservation efforts. Our model is designed to counteract the nationwide trend of disappearing low-cost rental units, ensuring affordable living spaces remain accessible and integral parts of the community.

Naturally Occurring Affordable Housing "NOAH" Property Management

NOAH , our property management affiliate partner brings innovation and compassion to the forefront. By offering structural programs like flexible payment options , deposit alternatives & positive credit reporting , NOAH directly contributes to the financial health of our tenants. In an era where many Americans grapple with rising rents, NOAH stands out as a pillar of support, ensuring stability and peace of mind for our residents.

AU Development

At the heart of our redevelopment efforts is AU Development, leading the charge towards sustainable living and redefining what affordable housing looks like. Focused on programs like water conservation , that not only improve the sustainability of our assets but impact the bottom line. AU Development ensures that our communities are not only habitable but are forward-thinking and sustainable. (Check Out This Before & After)

Southeast Affordable Housing Administration "SAHA"

SAHA , our affiliate non profit partner, embodies the power of collaboration. By providing crucial tenant-focused services like credit score tracking, SAHA makes our communities more accessible and inclusive. SAHA's efforts are vital in maintaining the affordability of our housing in an increasingly challenging market, ensuring that we remain a beacon of stability for our residents.

The Current Landscape and Our Vision

Affordable housing is a patchwork of highs and lows across the country, with rents climbing steadily almost everywhere. Affordable Upstate stands firm in its vision to create sustainable communities that nurture their residents for the long term. We're working toward a future where a teacher in Greenville County can comfortably afford a home on just a quarter of her salary. We believe that when individuals in a community prosper, the whole community blooms.

To realize this vision, we are not only focused on affordable housing solutions but also on various initiatives aimed at fostering growth and connectivity within our communities. This includes our commitment to bridging the digital divide —a significant aspect of modern life—ensuring every resident enjoys access to the digital world. But our efforts don’t end there. We are equally dedicated to providing programs that enhance economic mobility, offer subsidized utilities, and contribute to a holistic approach to community development, all of which are essential for building a thriving, empowered, and connected community.

"Creating lasting change in a community requires a collective effort. It demands a network of partners, each contributing their time, skills, and resources towards a shared mission."

- Mario Brown, Affordable Upstate Co-Founder

Partnership: It Takes a Village

In the spirit of the proverb, "It takes a village to raise a child," we at Affordable Upstate believe it similarly requires a collective effort to implement meaningful, social, and economic change within our communities.

Our network of partners is strategically aligned to foster economic mobility, transcending mere real estate transactions. Each member of our alliance is dedicated to transforming communities through a shared vision and diverse contributions. Affordable Upstate engages investors, SAHA integrates with its nonprofit alliances, AU Development collaborates with subcontractors, and NOAH employs its expertise in community housing management. Together, we're committed to driving economic change and enhancing the fabric of our communities.

Joining Forces with Affordable Upstate

Affordable Upstate invites you to a future where affordable housing is the norm, not the exception. Explore our community-centric model further and become part of a movement redefining what it means to call a place home.

Brian Albers & Mario Brown Named Leadership Greenville Distinguished Alumni

Mon, 26 Feb 2024 05:04:49 GMT

Brian Albers & Mario Brown Named Leadership Greenville Distinguished Alumni at 135th Greenville Chamber Annual Meeting

At the 135th Greenville Chamber Annual Meeting our cofounders Brian Albers, CFP® and Mario E. Brown were awarded the prestigious Leadership Greenville Distinguished Alumni Award sponsored by Prisma Health! Recognizing their exceptional civic and community contributions, Brian and Mario, graduates of Leadership Greenville Class 43, have truly made a difference. After meeting in Leadership Greenville, Albers and Brown were inspired to create Affordable Upstate to support neighbors in need.

READ THE FULL ARTICLE HERE

Bridging the Digital Divide: Affordable Upstate's Commitment to Connectivity

mario@affordableupstate.com (Mario Brown) — Thu, 22 Feb 2024 16:12:32 GMT

Bridging the Digital Divide
Affordable Upstate's Commitment to Connectivity

"At Affordable Upstate, our communities are only as valuable as the people who grow, flourish, and live within them." - Mario Brown, Affordable Upstate Co-Founder

In a world deeply intertwined with digital technology, the internet has become a vital resource, integral to the daily lives of millions. However, there remains a significant portion of our community for whom this essential service is out of reach. This disparity in digital access is more than a convenience issue; it's a barrier to education, employment, and social mobility, particularly for families living at 30%-60% of the Area Median Income.

When we learned that ¼ of families living at 60% AMI, a large percentage of our residents, do not have home internet access, we decided to take action.

We found a great community champion in our local cable and internet provider, Charter Communications , to subsidize cable and internet service for all 1,450 apartment units we have in the Upstate of SC. This is one of the many structural changes we have implemented to ensure that when a tenant moves into one of our complexes, economic mobility through credit score building and access to fast, cheap, and reliable internet is 100% the norm. ( N.O.A.H. Property Management)

Overlooked Essentials

Access to Educational Resources: Home internet provides access to a vast array of free and low-cost educational materials. This includes online courses, tutorials, and educational websites, which can help individuals gain new skills and knowledge. This is particularly beneficial for those who cannot afford traditional education or live in areas with limited educational facilities.
Job Opportunities: The internet opens up a world of job opportunities that are not bound by geographical constraints. People can search for jobs, apply online, and even work remotely, which can be especially advantageous for those living in areas with limited local employment options.
Financial Services and Literacy: Home internet access allows individuals to utilize online banking, budgeting tools, and financial literacy resources. This can help in better managing finances, accessing credit, and making informed financial decisions, which are crucial steps towards economic mobility.
Networking and Community Support: The internet provides access to various social networks and online communities. These platforms can be used for networking, finding mentors, and accessing community support systems. Such connections can lead to job opportunities, business partnerships, and valuable advice, all of which can contribute to economic advancement.

Understanding the Digital Divide

Recent studies highlight the profound impact of the digital divide. During the COVID-19 pandemic, the internet was essential for school assignments, meetings, and virtual social encounters. However, approximately half of those with a high-speed internet connection at home experienced problems with speed, reliability, or quality. Furthermore, affordability continued to be a concern for many, with about a quarter of home broadband users worried about paying their internet and cellphone bills.

For children, the effects are even more pronounced. Approximately 34% of all parents whose children’s schools closed due to the pandemic reported that their children encountered tech-related obstacles in completing schoolwork, such as a lack of computer access at home or the need to use public Wi-Fi. This issue was particularly acute among families with lower incomes.

The Impact on Education and Socioeconomic Disparities

The digital divide perpetuates socioeconomic disparities. About 17% of students are unable to complete their homework due to limited internet access. Additionally, 50% of low-income families and 42% of families of color lack the technology required for online education [2]. In rural areas and districts with lower socioeconomic status, the lack of high-speed internet and limited access to devices exacerbate these disparities, leading to lower academic performance and a reduced competitive edge in higher education [2].

Low-income families have less access to information that could advance their education. As universities increasingly embrace technology, students without internet access face significant disadvantages, including different learning experiences and more obstacles to completing their education.

Affordable Upstate's Initiative

At Affordable Upstate, we understand the importance of internet access in today's world, especially for those who might find it out of reach. Our collaboration with Charter Communications is part of our ongoing effort to support our community. We're pleased to have worked out an arrangement that makes internet services more accessible for our residents. It's a small but significant step in our journey towards greater digital inclusion.

Our Vision for the Future

We see ourselves not just as community housing providers but as partners in our residents' journey towards empowerment. Ensuring affordable internet access is our way of contributing to their educational and professional growth. We're committed to creating a community where everyone has equal access to the digital world, believing that it can make a real difference in the lives of our residents. This initiative is one of the many ways we're striving to meet the diverse needs of those we serve, and we're enthusiastic about being a part of such a meaningful solution.

Sources:

[1] Pew Research Center: The Internet and the Pandemic & Internet and Technology Access Disparities

[2] American University School of Education: Understanding the Digital Divide in Education

Mario on "Masters of Moments" Podcast with Jake Wurzak

Thu, 25 Jan 2024 18:14:31 GMT

Mario on Masters of Moments Podcast with Jake Wurzak

Deploying $50MM into Affordable Housing with Mario Brown - Co-Founder of Affordable Upstate

Affordable Upstate is a real estate investment firm focused on redeveloping and redefining naturally occurring affordable housing in the Upstate of South Carolina.

In 2017 Mario co-founded Affordable Upsate, a small real estate investment firm, at the time with 63 units, that redevelops energy-efficient, multifamily apartment units. Since 2017 we have placed over $50MM of investor equity into socially responsible, environmentally-enhanced workforce housing investments.

On this episode, Mario and Jake discuss:

- The housing shortage in the southeast

- Mario's work in affordable housing

- Building a vertically integrated company

- Raising capital & deal structures

Topics:

00:00:00 - Intro

00:00:46 - Greenville: The new Austin?

00:03:46 - The housing shortage in the southeastern United States

00:10:57 - The opportunity in Class B multifamily

00:13:47 - Mario’s work in affordable housing

00:24:22 - Mario’s journey into real estate

00:26:57 - What advantage do you have investing in the market you live in vs. outsiders?

00:28:27 - Making the entrepreneurial leap

00:36:35 - Mario’s first deal

00:41:02 - Value add

00:42 :#5 - Becoming vertically integrated

00:45:36 - What innovative ways have you chosen to run the operating business?

00:49:44 - What’s a mistake you made when building the PM company?

00:51:28 - Investing through GPS and building trust with investors

00:55:46 - Deal structures

00:58:23 - Raising capital

01:02:03 - What is your competitive edge?

01:04:08 - Construction & renovations

01:09:55 - What’s your weekly work cadence?

01:12:04 - What drains your energy?

01:12:42 - What are your 3-year goals?

01:15:37 - What is your favorite hotel?

Jake Wurzak - Jan 17, 2024

Masters of Moments involves conversations with top entrepreneurs and business leaders about hospitality, Real Estate investing, and company building. We explore the ideas, strategies, and approaches that brought them to where they are today.

This podcast is for you if you are a seasoned investor, upstart entrepreneur, or someone looking to break into the real estate and hospitality investing world.

Jake Wurzak is the CEO of DoveHill Capital Management and Wurzak Hotel Group, a leading vertically integrated hospitality investment platform. Since 2011, he’s led the investment of $1.5 billion in hotel assets throughout the country.

Connect & Invest with Jake:

Follow Jake on Twitter: / jwurzak

Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/

Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo

Bridging the Gap in Greenville: Affordable Housing as a Solution to the Rent Crisis

mario@affordableupstate.com (Mario Brown) — Mon, 04 Dec 2023 19:58:05 GMT

Bridging the Gap in Greenville: Affordable Housing as a Solution to the Rent Crisis

In the city of Greenville, South Carolina, a silent crisis is unfolding. Wage statistics from 2023 reveal a stark reality: a significant portion of the city's residents are struggling to find housing that doesn't stretch their finances to the breaking point. Affordable Upstate, a real estate investment firm, is stepping up with a mission to preserve affordable housing and offer a beacon of hope in this challenging landscape.

The Challenge

A deep dive into the current rental market in Greenville presents a troubling picture. Data from the BLS and local rent trends indicate that a mere 2% of apartments are listed for rent under $1,000 per month. When utility costs are factored in, the affordability gap widens. For a one-bedroom apartment, utilities add an average of $163 per month, and for a two-bedroom, it's $211. This pushes the affordable rent threshold beyond the reach of 67.2% of Greenville County wage earners, who cannot afford the combined rent and utility cost of $1,163 per month.

The Reality of Construction Costs

The high costs of borrowing and construction have made it nearly impossible to build new housing units with rents below $1,000 without significant subsidies, which are in short supply. Consequently, households find themselves allocating more than the recommended 30% of their income to housing, as per HUD guidelines, just to maintain a basic standard of living.

A Coalition for Change

In response to this dire need, Affordable Upstate is leveraging the Greenville Affordable Housing Coalition to gather stakeholders from various sectors. The goal is to forge public/private/nonprofit partnerships that can generate innovative solutions to the housing shortfall, which stands at a staggering 20,000-unit deficit in Greenville alone.

Affordable Upstate's Strategy

Affordable Upstate is taking a proactive approach by focusing on the preservation of existing affordable housing. This strategy is not only more cost-effective than building new properties but also crucial in preventing the exacerbation of the current crisis. The firm has observed a worrying trend of out-of-state developers converting affordable units into luxury apartments, which can lead to rent increases of $400-600 upon lease renewal, displacing long-term residents.

The Solution: Preservation and Revitalization

Affordable Upstate's disciplined investment strategy targets properties that can be revitalized through thoughtful capital improvements and operational efficiencies. By acquiring and renovating older properties, the firm aims to provide modern, energy-efficient, and affordable living options without displacing current residents. This approach not only stabilizes communities but also offers a sustainable model for maintaining the character and affordability of the Upstate region.

Our Commitment to Greenville's Future

The rent crisis in Greenville is a complex issue that requires a multifaceted approach. Affordable Upstate's commitment to preserving naturally occurring affordable housing is a vital part of the solution. By modernizing existing properties and keeping them affordable, the firm is not only protecting the community but also ensuring that the residents of Greenville have access to quality housing that fits their budget. As the city continues to grow, it is initiatives like these that will help maintain the balance between development and affordability, ensuring that Greenville remains a vibrant and inclusive community for all.

Affordable Housing: A Key Driver for Sustainable Development in Greenville, SC

mario@affordableupstate.com (Mario Brown) — Mon, 04 Dec 2023 19:34:40 GMT

Affordable Housing: A Key Driver for Sustainable Development in Greenville, SC

In the bustling city of Greenville, South Carolina, a city celebrated for its rich history, cultural vibrancy, and economic growth, the concept of sustainable development is not just a goal but a necessity. At the forefront of this vision is Affordable Upstate, a firm that understands the profound impact of affordable housing on the community's overall sustainability. It's a commitment that goes beyond providing shelter; it's about nurturing a community that excels in every aspect of sustainability - economic, social, and environmental.

The Role of Affordable Housing in Sustainable Development

Affordable housing is a linchpin in the wheel of sustainable development, directly impacting several of the United Nations' Sustainable Development Goals (SDGs). It's a comprehensive solution to global challenges, including poverty, health, education, and environmental sustainability.

Poverty Reduction

Affordable housing is a powerful weapon in the battle against poverty. Affordable housing significantly reduces financial burdens , enabling families to allocate more resources towards essential needs like health care and education. This shift not only breaks the cycle of poverty but also fosters a more equitable society where opportunities for advancement are accessible to all.

Promoting Good Health

The correlation between housing and health is undeniable. The World Health Organization underscores that safe, stable, and affordable housing is instrumental in enhancing physical and mental health. It mitigates health risks associated with substandard living conditions, such as chronic diseases and mental health disorders, thereby contributing to a healthier, more productive community.

Ensuring Educational Opportunities

The stability provided by affordable housing is a cornerstone for educational success. Children in stable housing conditions exhibit higher school attendance rates and improved academic performance . This stability fosters an environment conducive to learning and personal development, setting the stage for future success.

Economic Growth

The preservation of older apartment buildings into affordable housing significantly bolsters economic growth . This approach is more efficient than constructing new units, often costing one-half to two-thirds as much. By leveraging the nation's existing stock of government-subsidized affordable rentals, a substantial taxpayer-funded investment, preservation avoids the high costs associated with new construction. Furthermore, federal, state, and local governments, along with nonprofits, are utilizing creative financing and ownership structures to support these preservation efforts, thereby bolstering their economic viability and impact.

Sustainable Cities and Communities

Affordable housing is integral to the development of sustainable cities and communities. The U.S. Green Building Council advocates for green affordable housing , which not only minimizes environmental impact but also promotes sustainable community development. This approach leads to more efficient use of resources, reduced carbon footprint, and a healthier living environment for residents.

Our Impact in Greenville

Affordable Upstate's Commitment

In Greenville, Affordable Upstate's commitment to redeveloping and preserving affordable housing is unwavering. Our projects are more than just housing solutions; they are catalysts for community development and economic growth. We strive to create housing that is not only affordable but also enriches the lives of its residents and the community at large.

Community Development

At Affordable Upstate, we're committed to more than just building houses; we're about nurturing communities. Our redevelopment projects aim to transform properties into welcoming, sustainable neighborhoods. We strive to create spaces where diversity is acknowledged and respected, and where every resident can feel a sense of connection. It's about enhancing the living experience for our residents in a modest yet meaningful way, contributing positively to the broader Greenville community. We believe in the power of thoughtful design and community engagement to not only provide homes but also to foster a sense of unity and mutual support among residents.

Economic Stimulation

Our role at Affordable Upstate extends to gently stimulating Greenville's economy through our development projects. While we create construction jobs, we also indirectly support local businesses, from building material suppliers to small retail stores. Our projects can breathe new life into neighborhoods, potentially attracting new services and amenities. This activity can improve the local economic landscape in a modest but significant way. We're mindful that our work can help residents save on housing costs, potentially freeing up their budget to support local businesses, thereby contributing to Greenville's economic health in a small but impactful manner.

Environmental Sustainability

Affordable Upstate is committed to environmental sustainability, actively working towards U.S. Green Building Council standards. A key achievement includes saving 7,918,208 gallons of water annually across 439 units, leading to a $85,980 bill reduction. Our focus is on energy-efficient designs and sustainable materials, reducing environmental impact and living costs. Initiatives like efficient insulation, energy-saving lighting, green spaces, and walkable communities are central to our approach, minimizing ecological footprints and promoting healthier lifestyles. These efforts exemplify our dedication to environmentally responsible and sustainable affordable housing in Greenville.

The Power of Affordable Housing

Affordable housing is not just a component of sustainable development; it's a driving force behind it. In Greenville, SC, Affordable Upstate is at the forefront of this movement, preserving homes that are affordable, sustainable, and integral to the city's future. By investing in affordable housing, we are investing in a more prosperous, resilient, and sustainable community.

To learn more about our impact and how you can contribute to this transformative journey, visit us at Affordable Upstate .

Greenville County making progress on monumental affordable housing deficit

Fri, 01 Dec 2023 20:25:44 GMT

Greenville County making progress on monumental affordable housing deficit

Megan Fitzgerald | Greenville Journal Feature | November 30, 2023

Habitat for Humanity of Greenville County is a part of the Greenville Affordable Housing Coalition. The nonprofit helps both build and preserve affordable housing in the county. Photo provided by Habitat for Humanity of Greenville County

Affordable Upstate's Co-Founder / Principal, Brian Albers was featured in a Greenville Journal post published on November 30, 2023 by Megan Fitzgerald about the uphill battle that reducing the affordable housing shortage in Greenville County is.

The Greenville Journal article reads:

" Demand for housing continues to rise. Interest rates and construction costs remain high. Acquiring adequate subsidies is an ongoing challenge.

“It’s a bit of a perfect storm for barriers when it comes to affordable housing,” said Tina Belge, the Greenville Housing Fund’s policy and advocacy director.

Despite the obstacles, experts say progress is being made to produce more affordable housing, which is defined as housing that costs residents not more than 30% of their monthly income. Strides toward improving the affordable housing deficit come from combined efforts between local organizations, municipalities and stakeholders." ...

Read the full Greenville Journal article here .

Brian Albers Feature:

2023 SC Area Median Incomes Just Released: Top Observations

Tue, 06 Jun 2023 20:40:59 GMT

2023 SC Area Median Incomes Just Released: Top Observations

The US Department of Housing and Urban Development (HUD) just released updated Area Median Incomes (AMI) for 2023. In the state of South Carolina, AMI has grown in nearly every county in the state—some by percentages in the double digits.

The AMI levels listed below (and the changes from the previous year) have several uses. They highlight county-level demographic and economic trends, and they influence decisions on housing policy and affordable housing initiatives.

Additionally, these updated Area Median Income figures deliver insights that investors can use to make informed decisions on their allocation of capital.

South Carolina County AMI Numbers At a Glance

Below are the 2023 AMI numbers for every South Carolina county, along with the previous year’s AMI and year-over-year growth for each.

Significant Growth; Surprising Drops

Top-level observations from these numbers include the significant growth in several counties: Greenwood County in the southern Upstate leads the way with a stunning 38.25% year-over-year increase in AMI.

Three other counties broke 20% YoY AMI growth:

Lancaster County (Mid-Carolina; just south of Charlotte, NC): 28.07%
Laurens County (southern Upstate, just north of Greenwood County): 22.84%
Dillon County (upper Pee Dee, northeast of Florence): 20.35%

Just behind Dillon County is its neighbor Florence County, at 18.22% YoY growth.

On the other end of the spectrum, just three SC counties saw a YoY decrease in AMI. Two of these were nominal: Oconee County saw a 3.1% drop and rural, least-populated Allendale County (on the SC/GA border) dropped by 1.66%. The lone county with a significant drop in AMI was Kershaw County (a mostly rural county northeast of the Columbia metro) with a 12.41% decrease, likely due to a correction from a sharp increase in the previous year.

Digging Into the Changes

Of course, it’s not particularly surprising that AMI would rise during a period of economic inflation, nor is a rising AMI surprising in regions and counties experiencing growth. Upticks in AMI in the counties containing and surrounding the state’s economic hubs are par for the course.

But as we dig into the numbers, certain patterns emerge that might seem surprising. We’ll categorize these observations by region.

Upstate

With buzzworthy Greenville anchoring the region, we’re not surprised to see growth throughout the Upstate. However, it’s interesting that growth is concentrated in the southern-central counties, not in Greenville or Spartanburg themselves. Abbeville, Laurens, McCormick, and Greenwood Counties all saw double-digit growth, with Greenwood shooting to the top of the list.

This uneven growth may be a bit of a catch-up effect: Greenville and Spartanburg Counties have seen ongoing growth, while their surrounding counties may be catching up more rapidly as that growth radiates outward as Upstate residents are looking for a more affordable alternative to Greenville and Spartanburg.

Some business investments could be pushing AMI higher as well, such as Aerofoam USA in Abbeville County and Motor City Racks (and others ) in Laurens County.

The spike in Greenwood County becomes harder to understand when compared with population data: the region is losing population slightly, not gaining, and there’s little news of incoming business investment.

Midlands

Growth in the Midlands is concentrated at the northern and southern ends of the region. The Columbia metro, despite being the state capital and the region’s most populous area, saw minimal growth. But Lancaster and Cherokee Counties—the first directly south of Charlotte and the second along the I-85 corridor between the Upstate and Charlotte—saw some of the highest AMI increases statewide. Both of these counties increasingly function as exurbs of the costly Charlotte metro, so the larger Charlotte salaries filtering into these South Carolina counties drive some of the AMI growth.

On the southern end of the region, Aiken, Bamberg, Edgefield, and Orangeburg Counties saw 5 to 7 percent growth. Except for Aiken, these are mostly rural counties with some of the lower AMI figures statewide, and their increases track roughly with the inflation rate from January 2022 to January 2023.

Pee Dee

Both the Pee Dee and the Lowcountry feature a mix of inland rural and coastal developed counties. The southern side of the Pee Dee (Sumter, Clarendon, and Williamsburg Counties) saw growth between 9 and 13 percent. These rural counties all have relatively low AMI (Sumter being slightly higher thanks to the city of the same name); their increases track generally with those in other primarily rural counties. Some industrial expansions and tourism-adjacent growth (Lake Marion and Lake Moultrie are close by, and Myrtle Beach isn’t that far) could explain more of this growth.

In contrast, populous Horry County, home to Myrtle Beach and much of the Grand Strand, saw very little AMI growth, well below inflation—but in the context of the last five years, the muted change makes sense. Like several of the state’s economic hubs (Greenville, Spartanburg, and Charleston), Horry County saw rapid growth over the past five years, so the low increase is something of a plateau or correction rather than a troubling economic trend.

Lowcountry

The counties containing Charleston and its suburbs (Berkely, Dorchester, and Charleston Counties) already had some of the highest AMI figures in the state, and these three counties tracked similarly at around 5% YoY AMI growth.

In contrast, sparsely populated Colleton County had one of the lowest statewide AMIs in 2022 at $48.8k. It saw almost 14% growth in the past year, in part due to a massive investment from Pomega and Kontrolmatic Technologies and a new manufacturing facility from Boise Cascade Company opening in the county. Other rural counties in the region saw more modest AMI growth.

Beaufort County, home to coastal tourism as well as a sizable Marine Corps presence (Parris Island and MCAS Beaufort), saw a notable jump of over 16%. Significant raises in teacher pay and a growing number of higher-income households and retirees moving to the area help to explain the change.

AMI Trends and Affordable Housing

Rising AMI figures across the state of South Carolina are, in isolation, a good thing for those who need affordable housing in the state. As affordable housing eligibility hinges on residents’ income being under a given percentage of AMI, then a higher AMI would, in isolation, make more people eligible for affordable housing.

The problem is that AMI never rises in isolation.

AMI figures rise because incomes rise. For those on the periphery of income-earning or those on fixed incomes, higher AMI helps one qualify for affordable housing programs.

But incomes don’t rise in isolation, either. Often they rise in response (not always proportionally) to inflation. And AMI is not directly tied to housing costs, either: if a region’s AMI rises but fails to match an increase in housing costs over the same period (due to undersupply, population growth, or market trends), more and more families become housing-burdened.

Statewide, home values increased by 7% from April 2022 to 2023, while fair market rent increased by around 8.5%. In some counties, the increase in housing costs obliterated any benefits residents may have seen thanks to a higher AMI. For low-income residents who see less of those AMI increases yet carry the same level of housing cost increases, the picture becomes more and more dire—and the need greater.

In those counties that saw minimal or negative AMI growth, the pressures of inflation and housing costs become even more intense: some residents who qualified for housing assistance last year may not qualify this year (if their income stayed the same).

Affordable Upstate: Committed to Dignified Affordable Housing in South Carolina

As South Carolina and the southeast US continue to see population growth and too little new housing construction in those growing areas (among other factors feeding the housing crisis ), the challenges of affordable housing will continue to grow. Affordable Upstate is committed to preserving naturally occurring affordable housing (N.O.A.H.) in the Upstate and beyond, doing our part to combat challenges like the ones described above.

As we rehabilitate N.O.A.H. in the region, we leverage available programs, credits, and subsidies to generate a healthy return without pricing out residents.

Interested in investing that produces a reliable return and simultaneously does environmental and social good? Affordable Upstate is always looking for investment partners. Reach out to our investment team today to discuss options.

Operations Season Spring 2023

Wed, 31 May 2023 13:16:20 GMT

Multifamily Operations Season, Spring 2023

Written by: Mario E. Brown

As market activity within commercial real estate slows to a crawl, value-eroding inflation has continued to rip, severely impacting multifamily owners' net operating income. Gone are the days of fast, double-digit rent premiums that, for a while, masked the impact of inflation on MF assets NOI. Now is the time for multifamily owners/operators/syndicators to think about operational efficiencies.

As owners of workforce and affordable housing, our business plans and underwriting have always been conservative around revenue growth, ensuring the future of asset-stabilized rents is affordable for those living at 60-80 AMI. Because we have decided to cap rental growth, we have always scrubbed potential property operations for other efficiencies and services that create yield for both our residents & investors. Our focus has continually been expanding and implementing specific services that positively improve the everyday lives of our residents (e.g., Wholesale Cable & Internet Packages, Rental Insurance, and Flexible Payment ) while offering significant investment returns to our investors. Supplementing our moderate base rent growth with tenant-centered services and alternative revenue streams that are not zero-sum creates tangible value for our residents and meaningful yield for our investors.

Spurred by the Fed's aggressive interest rate hikes over the last 15 months, the entire multifamily sector is in a new season. A season defined by inflation, increased operational expenses, and flat topline growth as tenants struggle to keep up with their household inflation. Our firm's unique value proposition has historically been our target demographic, improving and preserving their available housing stock through capital improvements & targeted services. Over the next 12 months, our value, like all multifamily operators, will be in our ability to lean into scaled solutions that allow us to reduce expenses and control costs while delivering higher quality service to our residents and, ultimately, our investors.

Here is where our team has spent its time over the past year preparing for the other side of the multifamily bull run we have all participated in:

1. Property Taxes

As a mission-driven for-profit, our commitment to preserving workforce housing is underpinned by our ability to layer the most efficient affordable housing incentives onto our Naturally Occurring Affordable Housing assets. To this end, in 2022, we partnered with the Southeast Affordable Housing Administration (S.A.H.A) to layer affordable housing property tax abatements across our portfolio. Since the inception of our partnership, S.A.H.A. has successfully abated over 2MM of Real Estate Property taxes within our portfolio. In addition, we've hired Anthony Thompson, our in-house counsel with extensive experience with large institutional real estate transactions and a heart for our mission as a Greenville Native.

2. Property Insurance

Our portfolio reached critical mass in late 2022, with over 1,500 units of "market rate affordable housing" under ownership. We've leveraged our expanded portfolio to negotiate scaled savings with vendors and service providers. Our first focus was our ever-growing insurance premiums. As the number of insurance carriers in 1970s-1990s multifamily space has dwindled, insurance premiums have skyrocketed. Most owners of 1970s-1990s garden-style apartments are stuck absorbing these yield-eroding increases.

"In 2019, [property insurance] rates went up 10% to 40% in multifamily," says Garrett Maloney, vice president at TBM Multifamily, a national insurance brokerage. "Many in the industry thought carriers were taking the rate they needed in 2019. In 2020, we've also seen an increase in rates of about 10% to 40%, so it's compounded the issue." Insurance premiums for apartment properties have increased more than other real estate sectors, according to insurance experts"

At the tail end of 2022, Affordable Upstate began the arduous process of aggregating its insurance policies into one Master Policy. The benefits of this have been multifaceted.

Full Replacement Cost Coverage
Umbrella Policy Coverage up 10X
Over $100K in premium savings annually

This new Master Policy has much more robust coverage for far less cost, adding more than $2,000,000 of value to our portfolio (100K annual premium savings on a 5% cap rate)

3. Utility Expenses

With approximately 35% of US employees working remotely from home, multifamily owners have experienced a considerable spike in utility usage at their properties ( link .) Research shows that water usage, the work-from-home trend, is here to stay owners and operators of multifamily assets can either take increased utility usage on the chin, like the rest of the inflation rippling their P&L statements, or seek to impact these increases with programs like our AU Water Conservation Program. Since 2021 we have achieved massive property savings while conserving one of our most precious resources, water.

Continued Focus

As we continue negotiating with vendors and service providers, we will update you on the savings the portfolio realizes. This fight for scaled efficiency and discount on every expense line item of our financial statements is fully underway. We have been working on incorporating software and technology, like HappyCo, that creates a far less people-dependent business while drastically improving our access to information. We have also launched a property management company for a portion of our portfolio to reflect our core values in every interaction our tenant has with our assets.

Connect with Mario on Twitter

4 Factors Feeding the Housing Crisis in 2023

Thu, 09 Feb 2023 14:39:28 GMT

4 Factors Feeding the Housing Crisis in 2023

Who Can Buy a House Anymore?

The US is contending with a crisis of housing affordability in 2023. This crisis has been developing for years, slowly at first and then rapidly over the previous two. Put simply, in every major market (and most not-so-major ones), buying a home is no longer affordable for a family earning the median annual income.

Buying a home—once a pillar of the American Dream—is now a severe financial burden or simply out of reach for more than half of US households. And just about every number and metric you can find is trending in the wrong direction.

This month we’re taking a moment to work through the question: how did we get here?

A comprehensive answer would fill a small book (or several), so today we’ll examine just a few of the leading factors feeding the housing affordability crisis in 2023.

New Home Builds Not Keeping Pace

First, both nationally and in many local markets, new home builds simply aren’t keeping up with demand.

The reasons are numerous, and you can find well-researched explanations of everything from supply chain problems to zoning and permitting complexity among many others, but we’ll focus on just one cause: not enough workers.

The labor shortage in housing construction is not new: it started in 2008 as the housing bubble burst and the Great Recession began. At the risk of oversimplifying, people in the field found other jobs and didn’t look back, and far too few filled in behind them. Once the market was ready to build again, there weren’t enough people doing the building.

This labor shortage is a nationwide problem , with Moody’s estimating a shortfall of 1.5 million homes in the US and the National Association of Home Builders (NAHB) projecting a need for 2.2 million new hires through 2024. Unsurprisingly, the problem is concentrated in growth areas, including Sun Belt markets like Raleigh Durham, NC , and right here in Greenville County .

The math here doesn’t have to be complicated: if a market (or a nation) can’t build enough homes to meet demand, prices rise. And as prices rise, more and more would-be homeowners become mortgage-burdened or are priced out of the market entirely.

Rising Home Prices Coupled with Inflation

One of the most visible contributors to the housing crisis is the significant rise in home prices nationwide, including in Greenville County. The last several years have seen yearly jumps by 15% or more in the median price for existing homes, far outpacing wage growth.

Nationwide, the median home price has more than doubled from 2009 to 2022 , and $100,000 of that rise in value has occurred since Q2 2020. Real median household income over that same span grew modestly from $63,000 to just over $70,000 in 2021— and actually declined noticeably from a 2019 peak.

Signs point to some wage growth in 2022, but nowhere near proportional to the increase in home prices.

While wages have grown only modestly, inflation throughout nearly every sector of the economy is causing households to stretch their wages further: if people are spending 8% more on groceries than a year ago, the difference has to come from somewhere. In many cases, it shows up as less money into savings (such as for a down payment).

To sum up: home prices are rising exponentially relative to income, even as inflation eats away at that income. It’s not a healthy place for would-be homeowners.

Rising Interest Rates

In an effort to rein in inflation, the Federal Reserve has aggressively increased interest rates, with seven consecutive rate hikes through 2022 and more projected for 2023. We could argue about how we got here regarding inflation and how printing billions in free money was bound to have some sort of downside (and boy do we have thoughts), but that’s a bit beside the point.

What is the point is that rising interest rates directly affect mortgage rates and thus the purchasing power of the average family. The goal here is to cool down spending by making borrowing more painful. But making borrowing more painful has a (perhaps unintended?) consequence: it makes buying a house more expensive and more difficult.

Let’s look at a local example. The October 2022 (most recent data available) median home value in Greenville County was $309,675. To buy a home affordably at that price in January 2020, a household would’ve needed an annual income around $75,000 considering the FHA mortgage interest rate of 3.89% (national rate in January 2020).

But to buy a home at the same price—down to the dollar—at today’s (Oct-22) FHA mortgage interest rate (6.72%), a family would need over $95,000 in annual income.

In this hypothetical, nothing changed about the home or its value. By changing the interest rate—and nothing else—purchasing a home affordably now demands a more than 25 percent increase in annual income.

Institutional Investors Constrain Single Family Homes Market

We’ll highlight just one more of the factors feeding today’s housing crisis: institutional investors hoovering up single family homes (SFHs) and turning them into single family rentals (SFRs) at an unprecedented rate.

These investment firms can pay cash (over asking price if needed), making them an attractive option for sellers. And they do offer some value, as there’s plenty of renter appetite for SFRs.

But in an already constrained market, taking as much as 20% of the available supply off the board entirely most certainly isn’t helping big-picture numbers like the median home value. The fewer available homes compared to buyers, the higher the prices go.

Worse, investors often target the lower-priced “starter home” category as the most rentable, pushing the dream of first-time home ownership ever higher in cost.

Cumulative Effect Even More Dire in Affordable Housing

The effect that these combined factors have on people living near the median income for their area is bad enough. But perhaps the worst part of all of this is the effect on those living below area median income (AMI).

When housing isn’t affordable for the typical median household, housing becomes a true crisis for those living on less. At 80% AMI, 50% AMI, or even lower, housing costs balloon to consume unsustainable percentages of household income.

The same pressures that exist on new and previously owned housing stock exist and may even be worse in rent markets, including affordable housing. When we’re already dealing with a constraint on new construction, the slice of that new construction that goes to affordable housing tends to shrink even further . And as the affordable housing supply dwindles far below demand, rents go up in that market as well— levied on renters least able to absorb the increase.

These are a few of the reasons Affordable Upstate exists: we preserve naturally occurring affordable housing (NOAH) in innovative ways that meet investor expectations with minimal impacts to rent, all while raising the quality of living for existing and future tenants.

Interested in diving deeper into the housing affordability crisis as it stands in 2023? Our nonprofit, SAHA [Southeast Affordable Housing Association], is publishing a white paper, A Deeper Look at the Housing Crisis in 2023 , in just a few weeks. This white paper will take a much more detailed look at these factors as well as the reasons behind them.

Want to be the first to read this cutting-edge report?

Join the mailing list so you can read it as soon as it launches!

Re-convene 2022: Mario Brown and Brian Albers in Conversation with Moses Kagan

Thu, 02 Feb 2023 17:08:38 GMT

Re-convene 2022: Mario Brown and Brian Albers in Conversation with Moses Kagan

Learn about investing with AU

Schedule a call with our team today.

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The Affordable Upstate Flywheel

Tue, 10 Jan 2023 05:25:35 GMT

The Affordable Upstate "Flywheel"

Take a look at the “Flywheel Effect” in full force. This shows how our small wins build on each other to create a self-reinforcing cycle for our company.

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2022 Excellence in Affordable Housing Preservation Award

Mon, 02 Jan 2023 05:20:39 GMT

2022 Excellence in Affordable Housing Preservation Award

Affordable Upstate is honored to receive the 2022 Excellence in Affordable Housing Preservation award from our trusted partner, the Greenville Housing Fund ! GHF and AU co-own three communities in Greenville, with a shared mission to preserve affordable and workforce housing. GHF has made significant contributions to the community in 2022 and has ambitious goals set for 2023.

The city of Greenville was honored for its efforts with the 2022 Champion of Affordable Housing award, and Affordable Upstate received the 2022 Excellence in Affordable Housing Preservation award.

2022 achievement key highlights:

Deployed $6.5 million from Greenville Housing Impact Fund
GHF received $4 million from the city of Greenville
County approved affordable housing tax incentives
Policy with tax abatement for 40%-80% area median income
County approved $10 million in ARPA for affordable housing for the current biennium
GHF deployed $1 million from Greenville County and city of Traveler’s Rest on Harmony Ridge senior apartments

Read more in the Greenville Journal: https://lnkd.in/gKnnX_2X

Affordable Upstate fills unique role in low-rent housing preservation

Sun, 01 Jan 2023 06:23:58 GMT

Affordable Upstate fills unique role in low-rent housing preservation

By Conor Hughes chughes@postandcourier.com

Jan 1, 2023

Great start to the new year with our story and people highlighted in the local The Post and Courier !

Click here to read full article feature on Brian Albers and Mario E. Brown .

Follow Conor Hughes on Twitter at @ConorJHughes or reach him on his email at chughes@postandcourier.com .

Greenville Housing Market: 2022 Challenges and Opportunities

Wed, 28 Dec 2022 06:33:22 GMT

Greenville Housing Market: 2022 Challenges and Opportunities

Community Rewind: Growth Continues to Inspire, Challenge Development

Greenville faced economic challenges and opportunities in 2022, including a housing market struggling with high demand, rising prices, and a lack of affordable options. The region attracted significant corporate investment, including investments from BMW Manufacturing ($1.7 billion), Health Supply US ($150 million), and the Peace Center ($36 million). Smaller municipalities in the area have also seen growth and development.

Affordable Upstate Joins The Greenville Chamber of Commerce

Wed, 14 Dec 2022 05:51:37 GMT

Affordable Upstate Joins The Greenville Chamber of Commerce

Affordable Upstate is excited to share that we are new members of the Greenville Chamber of Commerce , the oldest and most prominent business organization in Upstate South Carolina! Looking forward to connecting with fellow community leaders to grow a greater Greenville.

To learn more, visit: https://www.greenvillechamber.org/

Water Conservation in Affordable Housing: Environmental and Financial Impacts

Wed, 30 Nov 2022 14:40:12 GMT

Water Conservation in Affordable Housing: Environmental and Financial Impacts

In the affordable housing space, we often focus on social impact—and rightly so! Elevating the living conditions of our community leads to so many benefits, not the least of which is the increased health and well-being of our community's residents.

But in addition to that social impact, investors and property managers also have the potential and opportunity (though often an unrealized one) to make a positive environmental impact. And doing so is often far less complicated or expensive than you might think.

Take something as simple as plumbing fixtures. Updating water fixtures in apartment complexes and other housing units is an easy and inexpensive improvement that makes an outsized impact, both environmentally and financially.

A Brief History of Water Fixtures

Understanding the progress we’re making starts with knowing where we’ve been, so bear with us through a brief (we promise!) history of water fixtures and the water conservation legislation that has guided their evolution.

Back in 1994, the Energy Policy Act of 1992 finally became law. In that legislation was a requirement that toilets manufactured after 1994 could use no more than 1.6 gallons per flush (GPF). Prior to this legislation, most toilets in the US used more than twice as much water: 3.5-3.7 GPF.

This legislation was the catalyst for decades of conservation-focused fixture advancements that continue today. In 2007 the EPA’s WaterSense standard was codified. This optional program uses aerators in bathroom faucets to reduce water use without sacrificing performance. WaterSense expanded to showerheads and other fixtures as well.

The EPA estimates that if the entire US switched to WaterSense-certified showerheads, we would save annually:

260 billion gallons of wastewater
$2.9 billion in water utility bills
$2.5 billion in water heating costs

Innovation continues to push water usage down further below federal regulations: new high-performance toilets use just 0.8 GPF without sacrificing performance.

The Affordable Upstate Water Conservation Package

Affordable Upstate’s water conservation package is simple: we leverage advances in water and fixture technology to save water and lower utility costs.

When purchasing assets built in the 1970s through early 1990s, we typically acquire buildings equipped with original toilets and fixtures. These fixtures are already using sometimes twice the water of their modern counterparts, and that’s before considering deterioration due to age.

These assets are missing out on 50 years of significant plumbing and water conservation advancements—and the cost savings that come with them.

Affordable Upstate has developed a robust water conservation package covering virtually every plumbing fixture in every unit. We retrofit kitchens and bathrooms with modern fixtures designed for water conservation, installing 0.8 GPF toilets, 1.25 GPM showerheads, and WaterSense certified low-flow faucet aerators to maximize water savings.

We've implemented this package at several of our recent acquisitions and revitalization projects, and the results have been astounding.

Here is one example of the results we achieved through this small investment.

Environmental Impact at Vista West I

Vista West I is a 76-unit apartment complex built in 1971. When we acquired it, the asset still had its original high-volume plumbing fixtures. It was the first property to receive our water conservation package, which we completed in 2021.

As you can see from these exterior views, our renovations went far beyond plumbing fixtures. Still, the water conservation package made an outsized impact.

We replaced every toilet and showerhead in all 76 units and replaced or added aerators to all faucets.

These relatively small fixture changes resulted in an approximate annual water savings of 2.2 million gallons for the property! And this estimate is conservative, based on the minimum figures in each measurement or estimate we received, meaning the savings are likely greater.

We don’t often think of small water-saving efforts like these as environmental conservation, but the compounded benefits to the environment are absolutely real.

Beyond Water Savings

The environmental impact of these conservation efforts extends past the whopping 2.2 million gallons of water saved annually at Vista West I. According to the US government's Energy Star program , conserving water helps the environment by diverting less water from limited fresh water resources such as rivers, bays, and estuaries.

In addition to protecting our freshwater resources, cutting water use mitigates some of the environmental cost to treating wastewater. Wastewater plants are a source of pollution. Conserving water helps those facilities work more efficiently and reduces the need to expand or build more treatment sites. On the back end of the process, water conservation efforts result in healthier wastewater receiving bodies: with less water going down the drain (literally), we’re reducing the amount of pollution and energy expenditure our local wastewater plants must produce as they treat and process everything they collect.

We were amazed by the environmental impact of this relatively small upgrade. But the environmental aspect is just one side to this story: the financial impact is worth discussing as well.

Financial Impact at Vista West I

Our water conservation efforts at Vista West I resulted in a 66% reduction in average monthly water bills.These savings effectively reduced the property’s recurring operating expenses, which ultimately helps us continue our mission of keeping rents affordable in an inflationary market.

This has game-changing implications for affordable housing. Instead of driving out lower income residents, we can elevate them and bring dignity, hope, beauty and revitalization to their communities— all while producing a solid return on investment for ourselves and our investor partners.

Expanding Our Water Conservation Mission

Following the success of our Vista West I water conservation efforts, we’ve implemented the same plumbing fixture upgrades in our most recent investment properties—Pacolet, North Franklin, Fairhill, Fairmeadow, and Hillcrest—completed in July 2022. The limited data we have from these properties is already showing significant savings in water use and utility bills.

Across the portfolio of AU properties that have received our water conservation package, we are conserving 7.9 million gallons of water (conservative estimate) a year! That’s around 8 million (or more) gallons we’re not taking from our precious fresh water sources or sending to wastewater treatment.

On average across our properties, we project that our water conservation package will reduce utility bills by $196/year per unit. This reduction in operating expenses allows us to charge less in rent even as we improve quality of life for residents.

Our goal in sharing these findings is twofold: First, we want to inspire other investors and property managers to implement these techniques for the good of the environment and for the good of their communities. Savings like these can be a big win for everybody.

Second, we’re looking for partners who see the value in our innovative approach and who will invest with us—both for stable and significant ROI and for the greater good of our community. We believe that our disciplined, strategic approach to affordable housing will maximize our investors’ returns while bringing modern, energy-efficient, affordable living to the Upstate of South Carolina and throughout the southeastern US.

Schedule a call to find out more about our customized real estate investment strategies.

November 2022 Leadership Greenville Alumni of the Month

Thu, 17 Nov 2022 10:28:14 GMT

November 2022 Leadership Greenville Alumni of the Month: Brian Albers and Mario Brown

Posted by: Anna Grace Galloway on Thursday, November 17, 2022

Greenville Chamber

Partners Brian Albers and Mario Brown met at the Leadership Greenville Program in 2016. That year, like all, the members of LG took an intensive look at many pressing issues in Greenville County. Most notably, the shortage of affordable housing. At the time, the city claimed to lack a whopping 2,500 affordable units. Inspired by the need and opportunity, Mario and Brian decided to combine their respective experience in investing and construction to tackle this issue head-on. Together, they formed Affordable Upstate to address the affordable housing shortage with a positive, people-centric approach to real estate investing. The founders aspire to redefine affordable/workforce housing in their community through the acquistion, redevelopment, and preservation of naturally occurring affordable housing for individuals living at 50-80% of the average median income.

Their first project began with the purchase and repositioning of 63 multifamily units in Greenville in 2017. Today, they own over 1400 units of affordable/workforce housing in Greenville and Spartanburg . By overlaying affordable housing incentives within their market projects, the pair are able to generate outsized returns for investors while preserving housing affordability for both new and existing tenants.

READ THE FULL ARTICLE VIA GREENVILLE CHAMBER HERE

Posted by: Anna Grace Galloway on Thursday, November 17, 2022

Greenville Chamber

Homes of Hope Golf Tournament

Tue, 15 Nov 2022 01:58:30 GMT

Homes of Hope Golf Tournament

We are mission driven, loved supporting another organization impacting our community in a big way.

We also have game, thankful to bring home the the W this year at the annual @HomesofHope Golf Tournament ��

Affordable Upstate Spends $39M on Multifamily to Preserve Greenville Affordability

Sat, 29 Oct 2022 00:49:50 GMT

Monument Capital Management sells Park West Apartments for $39M

Greenville, SC-based Affordable Upstate, whose mission is to preserve local affordable housing, has acquired the 359-unit Park West Apartments in Greenville, SC for $39 million.

Aline Capital sourced $32.4 million of bridge debt for the acquisition and rehabilitation from a private debt fund that was able to provide lucrative terms given the affordable nature of the business plan. Affordable Upstate will spend over $8 million on improvements including repairing deferred maintenance, interior and exterior upgrades and amenity additions.

Affordable Upstate was co-founded by Brian Albers and Mario Brown after they met in the Leadership Greenville program and both saw the community’s affordable housing needs. They have purchased and preserved over 1400 workforce apartment units in the Upstate area of SC.

*Original news article featured in Connect CRE by L isa McDuffie - linked here.

Atlanta & Southeast + Carolinas + Apartments | October 25, 2022

AU Partners with Local Internet Provider to Make a Difference

Thu, 20 Oct 2022 05:15:17 GMT

AU Partners with Local Internet Provider to Make a Difference

Did you know 1 in 4 families living at 60% Avg. Median Household Income (AMI) do not have home INTERNET?!

�� For reference, Greenville’s Avg. Median Household Income is $51k.

❕40% of our tenants are 60% AMI❕

So, we decided to come up with a solution. We partnered with our local cable/internet provider and signed a bulk deal to offer a subsidized cable/Internet package to all of our 1,450 workforce & affordable tenants. ��

Now #elearning and working from home is actually doable!

___

Since 2017, the Affordable Upstate firm has placed over $50MM of investor equity into socially responsible, environmentally enhanced workforce housing assets, resulting in a diverse and thriving portfolio with over 1,450 apartment units that satisfy the expectations of residents, investors, and communities.

VIEW OUR FEATURED PROPERTIES

Luxer One Package Room | Terrain at Haywood

Wed, 12 Oct 2022 04:37:30 GMT

Luxer One Package Room

Terrain at Haywood

Check out this recent update in one of our properties! We converted an unused “conference room” to a Luxer One package room at Terrain at Haywood . Luxer One rooms provide simple technology that adds a layer of controlled access. The melamine shelving, on brand signage, and door decal also gives a nice selling point for onsite staff.

LEARN MORE

WORK WITH US!

Monument Capital Management sells Park West Apartments for $39M

Thu, 06 Oct 2022 09:40:31 GMT

Monument Capital Management sells Park West Apartments for $39M

Monument Capital Management , an integrated real estate investment firm based in Miami, Florida, has sold Park West Apartments in Greenville for $39 million to an unnamed buyer, the company announced Sept. 8.

The 359-unit apartment community at 357 Hillandale Road was purchased by MCM in 2016 and features:

305 one- and two- bedroom garden style residences
54 two-bedroom townhomes

After purchasing Park West in 2016, MCM also completed upgrades to the community’s unit interiors, amenities and common areas.

“Park West was an ideal acquisition which realized a significant internal rate of return for our investors,” said MCM president Erin Knight. “Our overall improvements to the property made it a win/win for residents and the community as a whole as well.”

For more information, mcmgmtllc.com .

*Original news article featured in The Upstate Business Journal, Sept 12, 2022 - linked here.

Greenville Affordable Housing Dashboard

Wed, 02 Mar 2022 15:37:50 GMT

Greenville Affordable Housing Dashboard

Parkins Ridge affordable townhomes address housing’s ‘missing middle’

Wed, 12 Jan 2022 18:00:31 GMT

Parkins Ridge affordable townhomes address housing’s ‘missing middle’

Evan Peter Smith September 23, 2021

The “missing” middle is a term that has gained traction in recent years to describe the gap between detached single-family homes and density luxury rentals.

With increased cost of construction leading to a scarcity in the development of new low- and middle-income housing, prospective tenants are faced with a choice: either rent substandard units or spend well above their level of affordability.

A 52-unit townhome development from Brian Albers and Mario Brown of Affordable Upstate aims to fill that missing middle.

Located at 101 Ridge Road in Greenville, the majority 2- and 3-bedroom townhome-style apartments are the result of a $500,000, year-long renovation process that improved the exterior and interior finishes, while also including facade upgrades, kitchen and bathroom upgrades and a community space.

They’re actually more willing to take a rent increase when they have confidence that issues will get taken care of … – Mario Brown, Affordable Upstate

Uniquely, the development retained more than 85% of existing residents and the complex is already 100% occupied.

Brown, a Greenville native who attended high school at JL Mann Academy across the street from the development, said that although rent has increased for residents, he wanted to be sure the project didn’t push out residents.

“People aren’t losing their homes,” Brown said. “They’re actually more willing to take a rent increase when they have confidence that issues will get taken care of by the owners and a professional third-party property manager handling maintenance and upkeep.”

Affordable Upstate partnered with the City of Greenville and the Greenville Housing Fund for the upgrades, which allowed for a property tax abatement to keep rents low by area standards.

Affordable Upstate is a regional multifamily investment firm with more than $39 million in assets under management.

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Affordable Upstate and Easlan Management announce acquisition of two Upstate properties

Tue, 11 Jan 2022 18:08:07 GMT

Affordable Upstate and Easlan Management announce acquisition of two Upstate properties

January 11, 2022

Local Partners Expand Multi-Family Portfolio with locations in Spartanburg and Greenville

Affordable Upstate, a regional multi-family investment firm, in partnership with Easlan Management, a full-service property management company, announced today the acquisition of The Terrain at Haywood in Greenville and Hillcrest Townhomes in Spartanburg for $25.55MM. The complexes, totaling 235 units, were purchased from Nexus Real Estate in Pittsburgh, Penn. and Greenleaf Management of Norcross, Ga., respectively.

The addition of Terrain at Haywood and Hillcrest Townhomes brings Affordable Upstate’s workforce housing portfolio to more than $100 million in assets, with 900 units across the Upstate of South Carolina. Easlan Management, a Greenville-based multi-family management firm with properties across the Southeast, will provide full-service property management for the apartment communities.

Plans for updating the properties include a full renovation of the Hillcrest property, to both unit interiors and property amenities. Additionally, Hillcrest Townhomes will be rebranded under the name Trailside at Hillcrest, as a nod to its prime location on the Dan Trail in Spartanburg.

“These two properties are great additions to our portfolio and we are excited to have them,” said Mario Brown, Co-Founder of Affordable Upstate. “We look forward to what these two locations can become for the Upstate community as it continues to grow.”

Michael Holmes, President of Easlan Management, agreed. “We’re honored by our partnership with Affordable Upstate in this venture, and are looking forward to managing these two new properties and offering our services and focus on excellence to our new residents.”

About Affordable Upstate

Affordable Upstate, founded in 2017, is a real estate private equity firm focused on redeveloping and redefining naturally affordable multifamily housing in Upstate, South Carolina. Founded by Leadership Greenville graduates, Brian Albers & Mario Brown, the firm has placed over $23MM of investor equity into socially responsible, environmentally enhanced workforce housing assets over the last 12 months.

For more information, visit www.affordableupstate.com .

About Easlan Management

Easlan Management began in 1987, and for more than three decades the company has been committed to providing exceptional service in the multi-family housing industry. Today, with properties across the Southeast United States, Easlan remains focused on providing property management, industry consulting, and leadership insights.

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Redeveloping Affordable Housing

Tue, 11 Jan 2022 16:44:44 GMT

Redeveloping Affordable Housing

Key Points

Multifamily investing does not have to be a zero-sum game
Redeveloping the current affordable housing supply addresses critical community needs and can also deliver solid returns to investors
Targeted renovations incorporating energy-efficient strategies improve living conditions while increasing property value and lowering tenants utility bills

Affordable housing is often an overlooked opportunity; many people mistakenly assume that affordable and profitable are mutually exclusive concepts. With the right redevelopment plan, affordable housing investing can result in both greatly improved living experiences for residents and compelling cash flow for investors.

Affordable housing complexes often have two types of owners:

“Mom & Pop” owners who self-manage with little concern for the income approach used by institutional multifamily professionals
Absent, oftentimes out-of-state, owners who mainly view the property as a flippable asset.

Both types of owners can leave opportunities for investors to capitalize on the true value of their asset. Rents could be below-market, maintenance could be markedly deferred, and professional property management could add valuable services to enhance the resident experience.

We take a different approach to property ownership, implementing a value-add redevelopment plan that is mutually beneficial to tenants and investors alike.

By investing in interior/exterior renovations and implementing effective and efficient property management, we transform neglected substandard housing into decent, affordable apartment communities with high property value and increased revenue.

When we purchase a property we redevelop it from the inside out:

Before >>> After

Key Renovations: Updated vanity, new flooring, fresh paint, tub and shower wall replacement

Energy-reduction additions: Low-Flow Toilet, Low-Flow Shower Head,

Updated Lighting Fixtures

Before >>> After

Key Renovations: Upgraded flooring, fresh paint, backsplash, new countertops

Energy-reduction additions: Low-Flow Faucet, Vent Hood, Dishwasher Replacement, Upgraded Lighting Fixtures, Incorporation of Natural Light

Upgrading flooring, cabinetry, and fixtures improve the home drastically with a moderate budget. These interior renovations allow us to bring rents to market prices while still staying within an affordable range.

We also focus on:

Replacing out-of-date appliances
Replacing HVAC systems
Repairing existing water leaks

These improvements decrease energy consumption, lower utility costs, and increase overall efficiency.

The key to redeveloping affordable housing is identifying cost-effective solutions to long-standing deferred maintenance.

Our hands-on ownership structure, effective property management team, and calculated renovation plans enable us to increase revenues and property values while creating communities residents are proud to call home. Through this strategic redevelopment process, communities can stay affordable, while also becoming profitable assets.

- The Affordable Upstate Team

The information contained in this post is provided to you solely for informational purposes only, and is not to be shared, distributed, or otherwise used for any other purpose without direct reference to Affordable Upstate or link back to this post. This post is provided for education and discussion purposes only and does not constitute an offering. Opinions and projections included in this newsletter are provided as of the date of publication, may prove to be inaccurate, and are subject to change without notice. Prospective investors should not treat these materials as advice regarding legal, tax, or investment matters. No recommendations are made to invest in Affordable Upstate nor any other investment. An offering may be made only by delivery of a confidential offering memorandum to appropriate investors. Past performance is no guarantee of future results. Additional information about Affordable Upstate and its performance is available upon request.

Housing Assistance in the 2021 Stimulus

Tue, 11 Jan 2022 16:44:08 GMT

Housing Assistance in the 2021 Stimulus

Source: Rich Dad

On March 6, 2021, the American Rescue Plan Act passed the Senate as part of the $1.9 trillion COVID-19 relief package. Among other initiatives, this act includes substantial funds towards housing assistance. Here’s what's included:

Emergency Rental Assistance Program (ERA) - $25 Billion

Grantees: States and local governments

Uses: Financial assistance for back & forward rent, utility payments, and other housing expenses for up to 18 months

Eligibility: Households with income below 80% AMI are considered eligible if one or more household individuals has qualified for unemployment benefits, experienced a reduction in household income, incurred significant costs, or experienced other financial hardship during or due, directly or indirectly, to the pandemic and can demonstrate a risk of experiencing homelessness or housing instability

Allocation: Typically through partners and not directly through a government agency. Funds are distributed to grantees (state & local governments) who then allocate funds to partners on the ground (such as nonprofit agencies) to distribute. Households and landlords then apply for assistance through programs established by these partners.

Of the $25 Billion, the state of South Carolina received $346,020,970.50. Greenville County received $15,833,163.40. Here is the application for assistance in Greenv ille County.

Homeless Assistance - $5 Billion

Grantees : States and local governments

Uses: Development and support of affordable housing, acquisition, and development of non-congregate shelter units, tenant-based rental assistance, support services including housing counseling and homeless prevention services

Eligibility: Individuals or households that are or at risk of experiencing homelessness; people who are fleeing or attempting to flee domestic violence, dating violence, stalking, sexual assault, or human trafficking; populations for whom supportive services would prevent the family’s homelessness or having a high risk of housing instability; households with a veteran family member that meets one of these criteria

Allocation: Through the HOME Investment Partnerships Program (HUD)

Emergency Housing Vouchers - $5 Billion

Grantees: Public Housing Agencies (PHAs)

Uses: New emergency vouchers, renewals of emergency vouchers

Eligibility: People who are homeless or at risk of homelessness; people who are fleeing or attempting to flee domestic violence, dating violence, stalking, sexual assault, or human trafficking

Allocation: HUD will notify PHAs of the number of emergency vouchers they will be provided within 60 days of passage of the act

Click here to find your local PHA

Click here for Greenville County PHA

Asset Allocation in the 2020s

Tue, 11 Jan 2022 16:43:39 GMT

Asset Allocation in the 2020s

U.S. investors find themselves in a new investing paradigm one year after COVID-19 arrived in the U.S.

The S&P 500 just set record highs above 4,000. The S&P is at a 34 price-to-earnings ratio, which according to economist Robert Shiller, means “ stocks are in an extreme bubble . ”

The most important price in the world (a.k.a. the price of money), U.S. 10-year treasuries have risen to 1.7% after closing at 0.53% in August 2020.

Bonds used to be an adequate income and savings vehicle when they yielded above 5%. At today’s low rates, they seem more like return-free risk due to increasing inflation.

Is inflation transitory as the Federal Reserve says, or have we finally turned the massive ship around on the 40-year deflationary trend?

The S&P 500 just set record highs above 4,000. The S&P is at a 34 price-to-earnings ratio, which according to economist Robert Shiller, means “ stocks are in an extreme bubble . ”

The most important price in the world (a.k.a. the price of money), U.S. 10-year treasuries have risen to 1.7% after closing at 0.53% in August 2020.

Bonds used to be an adequate income and savings vehicle when they yielded above 5%. At today’s low rates, they seem more like return-free risk due to increasing inflation.

Is inflation transitory as the Federal Reserve says, or have we finally turned the massive ship around on the 40-year deflationary trend?

At the beginning of 2020, despite the President’s claims of the U.S. economy being “the greatest in the history of the country,” the U.S. faced a number of structural problems, including:

Extreme over-indebtedness
Deteriorating demographics
Misallocation from the real sector to the financial sector

These issues have only intensified one year later. In response to the country rapidly shutting down due to COVID-19 outbreaks and falling markets, on March 23, 2020 , the Federal Reserve launched unprecedented market interventions including:

Purchasing an unlimited amount of U.S. government and mortgage-backed securities
Purchasing corporate bonds, including junk bonds
Providing financing directly to individual companies
Growing its balance sheet from $4 to $7 trillion
Reducing bank reserve requirement ratios to zero percent
Providing forward guidance of short-term interest rates staying near zero until at least 2023, possibly 2025

These corporate solvency-ensuring operations were meant to “ trickle-down ” to save jobs. But the Fed’s increasing balance sheet went almost entirely to prop up asset prices, obliterating moral hazard and creative destruction .

Corporate managers learned price and liquidity is protected by the Fed, so they allocated more resources to financial investments (like stock buybacks) and less to real investment. The stock market used to be considered a leading economic indicator, but now it’s more a tool of monetary policy.

Since Biden took office, the government passed a $1.9 trillion stimulus package . The President just unveiled a $2 trillion infrastructure bill . In mid-April, Biden will unveil the second part of his recovery agenda focusing on the costs of health care, child care, and education. He is getting pressured to sponsor a fourth stimulus check bill and to make them regular $2,000 payments.

Given this backdrop, how should investors allocate their investments to achieve maximum returns while minimizing risk?

Many retail investors don’t follow the markets closely enough to feel confident they can predict ups and downs. So they make asset allocations that are designed to perform well on average through all market conditions.

The most popular asset allocation strategy for retail investors has been the risk parity portfolio based on modern portfolio theory, where investors allocate approximately 60% to stocks and 40% to bonds, depending on time horizon, risk tolerance, and goals.

At current extreme valuations, relying solely on stocks and bonds isn’t very appealing.

What other options exist?

Innovation in technology and regulation have decentralized access to private investment opportunities previously only available to institutional investors and family offices. Now, retail investors can access real estate, private equity, and venture capital opportunities.

Families that have $25+mm in assets often use family offices to manage their wealth. According to Richard Wilson of Centimillionaire Advisors, they take a more diversified approach to asset allocation:

“The most consistent approach I have seen is taking three levels of outsourcing and control and diversifying across assets and control levels. I typically see families dividing things into three simple buckets"

Family offices use real estate and private equity investments to add uncorrelated streams of income to their portfolio. They do so because they can strengthen their portfolio’s anti-fragility and provide high cash flow and upside equity potential. Retail investors would be well-served to learn more about the upsides those investment sectors can bring to portfolio performance.

The Resiliency of Affordable Housing Investing in the COVID-19 Era

Tue, 11 Jan 2022 16:42:55 GMT

The Resiliency of Affordable Housing Investing in the COVID-19 Era

Clemson Townhomes | Clemson, SC

The Affordability Hedge mitigates investment risk through three main pillars: demand, supply, and community support.

The onset of COVID-19 has proven the resiliency of the affordable multifamily market. As vacancy increases in other real estate sectors like office and retail, the multifamily market has remained stable. In fact, national vacancy rates remain under 6 percent and delinquency rates remain under 4 percent.

There is no scenario, economy, or society that will ever lack the need for stable, affordable housing options. With an ever-present demand and a dwindling supply, the affordable housing market is gaining traction in multifamily investments. Shuvam Bhaumik, managing partner for Boston’s CI Holdings Group, describes this phenomenon:

“The more affordable housing market is going to be the blue-chip investment in the real estate market in general. It’s like in the past when people wanted to buy IBM because we were always going to need computers; that’s what affordable housing is today.”

The resiliency of the affordable housing market in COVID-19 can be attributed to what we call the "Affordability Hedge." The Affordability Hedge mitigates investment risk through three main pillars: demand, supply, and community support.

Increased Demand

Prior to the pandemic, the country was experiencing an affordable housing shortage in nearly every city. The COVID-induced recession further exacerbated this shortage as millions of Americans lack access to safe, stable affordable housing options.

Limited Supply

The demand for affordable housing far exceeds the supply—the U.S. has a shortage of nearly 7 million rental homes. Although low- and middle-income households are at a higher risk of pandemic-related financial insecurity, low- and middle-income units have the lowest vacancy rates amongst all asset classes.

Community Support

With moratoriums preventing evictions, it makes sense that vacancy has remained relatively low throughout the pandemic. But what about delinquency? The eviction moratoriums do not excuse rental payments but merely delay them. Attention-grabbing headlines suggest that, once the moratoriums are lifted, millions of Americans will be faced with months of back-logged rent, face eviction, and landlords will lose out on months of payments. If this were the case, we would see rising delinquency to reflect this back-logged rent. However, national delinquency rates remain low—under 4%.

The lack of delinquency shows that rent is, in fact, being paid, although not always through traditional means. In the low-to-middle income asset class, there’s more government, nonprofit, and community support for tenants. Initiatives led by the public and private sectors offering direct rental assistance have minimized the effect of the pandemic on the affordable multifamily market. Thanks to these initiatives, the dreaded ‘backlog of unpaid rents’ has been paid. Here is a list of the latest rental assistance from the 2021 Stimulus Bill.

The need for affordable housing has always, and will always, be present in any economy. The "Affordability Hedge" protects the affordable multifamily industry from vacancy and delinquency, ensuring cash flow and occupancy.

The information contained in this post is provided to you solely for informational purposes only, and is not to be shared, distributed , or otherwise used for any other purpose without direct reference to Affordable Upstate or link back to this post. This post is provided for education and discussion purposes only and does not constitute an offering. Opinions and projections included in this newsletter are provided as of the date of publication, may prove to be inaccurate, and are subject to change without notice. Prospective investors should not treat these materials as advice regarding legal, tax, or investment matters. No recommendations are made to invest in Affordable Upstate nor any other investment. An offering may be made only by delivery of a confidential offering memorandum to appropriate investors. Past performance is no guarantee of future results. Additional information about Affordable Upstate and its performance is available upon request.

An Alternative Solution to the 'Missing Middle' Housing Crisis

Tue, 11 Jan 2022 16:41:39 GMT

An Alternative Solution to the 'Missing Middle' Housing Crisis

Parkins Ridge Townhomes | Greenville, SC

Key Points

"Missing Middle" defined: the gap between detached single-family homes and higher-density luxury rentals
Because of the increased cost of construction, the development of new low- and middle-income housing is practically non-existent
Low- and middle-income tenants are often forced to choose between renting indecent units or units outside of their affordability (30% of income)
Reinvesting capital into the existing stock of affordable housing is one key solution to solving the "Missing Middle" Housing Crisis

The multifamily rental market has become increasingly saturated with high-income tenants. In fact, high-income renters now occupy 60% of rentals —30% more than in 2006.

As high-income rental demand surges, new construction has shifted to (nearly exclusively) developing luxury apartments. From a business perspective, it makes sense to cater to the more profitable asset class. They make up over half of the rental population and there’s a higher profit margin. However, many low- and middle-income renters are being left behind as a result.

One key metric for measuring housing affordability is the Area Median Income (AMI). AMI is broken up into percentages to measure where a household’s income lands in respect to the population. The following shows what an average family in the US can afford to spend each month on a two-bedroom apartment based on their AMI:

The chart below shows the asking rents for new two-bedroom apartments. Only 18% of apartments are affordable for those at 50% AMI .

Parkins Ridge Townhomes | Greenville, SC

The lack of affordable housing production forces low- and middle-income families to choose between:

Both options present challenges.

The existing stock of affordable housing is concentrated in aging buildings, often owned by mom-and-pop or out-of-town owners, with deferred maintenance and below-average living conditions. Many families choose to sacrifice decency for affordability.

Other families rent outside of their affordability, whether by choice or necessity. Households paying more than 30% of their income on housing are considered to be ‘ cost burdened ' and may have difficulty paying for other necessities such as food, medical care, and transportation. This is becoming increasingly common; according to a study by the Federal Reserve, 46.8% of renter households experienced a housing cost burden in 2017.

In response to the growing need for affordable housing options, Opticos Design founder David Parolek coined the phrase Missing Middle Housing. Defined as the gap between detached single-family homes and higher-density luxury rentals, much of the literature surrounding Missing Middle Housing proposes new construction as the only solution. Although there is a definite need for the development of new affordable housing, it’s often not financially feasible.

Emily Badger, a reporter for the Washington Post, describes this challenge :

“We’ve made it very, very difficult in many cities to construct market-rate housing that would be affordable to the middle class or modest renters. It’s economically challenging for developers to create new apartments the median renter could afford — at about $875 a month — while covering the costs of constructing them”

Without financial incentives from the government, it is difficult for the construction of the missing middle housing to be profitable.

So, if building is a limited option, how can the community address the growing need for affordable housing?

One key is the preservation of existing housing. According to a study by the Greenville Housing Fund, it’s 24-40% more expensive to build new than to preserve. By shifting the focus on redeveloping the existing stock of housing, low- and middle-income renters have access to decent, affordable housing and developers can actually afford to provide it.

Want to see what this looks like in practice? Click here to see a recent redevelopment project by AU.

Families shouldn’t have to sacrifice decency for affordability. Reinvesting capital into the existing housing stock provides decent, affordable housing options for renters.

The information contained in this post is provided to you solely for informational purposes only, and is not to be shared, distributed , or otherwise used for any other purpose without direct reference to Affordable Upstate or link back to this post. This post is provided for education and discussion purposes only and does not constitute an offering. Opinions and projections included in this newsletter are provided as of the date of publication, may prove to be inaccurate, and are subject to change without notice. Prospective investors should not treat these materials as advice regarding legal, tax, or investment matters. No recommendations are made to invest in Affordable Upstate nor any other investment. An offering may be made only by delivery of a confidential offering memorandum to appropriate investors. Past performance is no guarantee of future results. Additional information about Affordable Upstate and its performance is available upon request.

Featured Unit: Before & After Photos

Tue, 11 Jan 2022 16:39:28 GMT

Featured Unit: Before & After Photos

The before photos show what the typical unit in affordable apartments looks like. When we purchase a property, this is often our starting point.

Scroll through to see the difference from start to finish.

Living Room

Replaced flooring with new luxury vinyl plank, new light fixtures, fresh paint, and hardware

Kitchen

Replaced countertops, cabinets, appliances, and hardware

Bathroom

Repaired leaks, refinished tub with a two-coat epoxy, new tub liner, in addition to a low-flow energy-efficient showerhead

Bedroom

How Corporate Earnings and Inflation Impact Real Estate Investing

Tue, 11 Jan 2022 16:35:02 GMT

How Corporate Earnings and Inflation Impact Real Estate Investing

If you follow financial media, you have probably noticed a lot of debate lately about whether the inflation the country has experienced the past year is transitory (as the Fed and bond market predict) or here to stay (as commodity markets are signaling).

It’s obvious that increasing costs will affect investment performance, but how? What types of investments outperform or underperform during inflationary or deflationary times?

In the 1990s Ray Dalio and his hedge fund, Bridgewater (now the largest hedge fund in the world), set out to answer those questions:

“I knew which shifts in the economic environment caused asset classes to move

around, and I knew that those relationships had remained essentially the same for hundreds of years. There were only two big forces to worry about: growth and inflation” -Ray Dalio

Dalio demonstrated that historically different asset classes outperform or underperform depending on if corporate earnings and inflation are growing or falling. If one can forecast those two factors, an investor can confidently invest in assets that have historically appreciated while those conditions existed.

Hedgeye , an investment subscription service, publishes daily long and short investment calls using Dalio’s framework. Using basic calculus to divide investment strategies into four quadrants, their suggested asset allocations depend on whether corporate earnings growth and inflation are increasing or decreasing on a rate-of-change basis.

While they do excellent tracking of past performance, investors should trust their forecasts of the future just as much as they trust any other financial prognosticator. Personally, we incorporate their thinking into our investment strategy but assign only partial probability to their forecasts.

We recognize there is a decent probability they’ll be wrong, so we maintain hedges via alternative investments and options/futures contracts.

Below is how Hedgeye suggests allocating your assets through all earnings and inflation scenarios. Sectors in green denote suggested long exposures while sectors in red denote short exposures.

Increasing Earnings and Decreasing Inflation

Increasing Earnings and Increasing

Decreasing Earnings and Increasing Inflation

Decreasing Earnings and Decreasing Inflation

The chart below shows which quads the US economy has been in since late 2019 and which ones Hedgeye predicts we’ll be in for the rest of 2021.

As long-term real estate investors, we find following this investing framework useful in several ways:

Diversifying Investments Outside of Real Estate

It’s important to have exposure to investments outside of real estate. Values won’t go up forever and other sectors could provide upside if real estate experiences a downturn.

According to Dalio , “I saw that with fifteen to twenty good, uncorrelated return streams, I could dramatically reduce my risks without reducing my expected returns.”

The quad framework helps guide asset allocation decisions.

Hedging Risks

Some investors have high exposure to a particular investment sector due to their careers. Many high-level employees accumulate stock in their companies as a major part of their compensation and they’re often. Often they are not allowed to sell those positions for years. The same is true for business owners.

In many cases, it makes sense for those employees to own put options on those concentrated holdings. Options need to be managed as they expire and using the quad framework can help investors make option buy/sell timing decisions.

Timing Debt Refinances

Commercial real estate investors typically have debt that balloons within 5-10 years, requiring it to be continually refinanced. If refinances can be timed when interest rates are low, it can result in higher cash flow and more cash-out proceeds.

Investors can use the quads to time refinances during deflationary periods when interest rates are falling.

Managing Construction Costs

Construction costs increase during inflationary times, limiting investment returns on ground-up development and value-add real estate investing. Timing supply purchases during deflationary periods can greatly increase returns on heavy construction projects.

No one financial prognosticator can definitively forecast how the market will perform. They can, however, provide valuable insight on how certain economic conditions directly impact asset classes, rooted in historical data. Sophisticated investors use this insight as a discretionary tool to make critical investment decisions based on current and future corporate earnings and inflation projections.

The information contained in this post is provided to you solely for informational purposes only, and is not to be shared, distributed, or otherwise used for any other purpose without direct reference to Affordable Upstate or link back to this post. This post is provided for education and discussion purposes only and does not constitute an offering. Opinions and projections included in this post are provided as of the date of publication, may prove to be inaccurate, and are subject to change without notice. Prospective investors should not treat these materials as advice regarding legal, tax, or investment matters. No recommendations are made to invest in Affordable Upstate nor any other investment. An offering may be made only by delivery of a confidential offering memorandum to appropriate investors. Past performance is no guarantee of future results. Additional information about Affordable Upstate and its performance is available upon request.

Renovating Multifamily Exteriors

grow@rootedbrands.com (Hayes Wynn) — Tue, 11 Jan 2022 13:38:13 GMT

Renovating Multifamily Exteriors

Parkins Ridge Townhomes | Mid-Renovation

When Affordable Upstate purchased Parkins Ridge with the Greenville Housing Fund in July of 2020, the exterior of the property left much to be desired. The original wood siding had deteriorated, paint was peeling off front doors, trash was overflowing out of the open-air dumpster, and the mailboxes were dingy and rusted.

By June of 2021, Affordable Upstate and the Greenville Housing Fund had completed their targeted exterior Capex renovations to bring the community back to life. Scroll through the before and after photos below to see the property transformation.

Updates include: new siding, low maintenance vinyl wrapped soffits, new gutters, parking lot seal coat, dumpster enclosure, newly designed property signage (powered by solar), and landscaping

As a value-add real estate multifamily investor, there are three main areas of capital expenditure (CapEx): mechanical, interior, and exterior renovations. Each of these is equally important: mechanical improvements address structural issues and deferred maintenance, interior renovations improve the quality of the actual units and exterior renovations increase curb appeal and the overall ‘feel’ of the property.

Many value-add real estate multifamily investors focus all of their energy on improving the interior of units and largely ignore the exterior. This grossly limits the property's potential--the exterior is the first thing that a potential tenant sees when they tour a unit. If the dumpsters are overflowing, the buildings are dirty and the roofs are sagging, this will overshadow the thousands of dollars spent renovating the unit interior. Continue reading to see the key details that we focused on:

Entrance & Signage Upfit:

We created a more inviting entrance by removing the blocked-chain link fence, pressure-washed the sign, modernized the landscaping with mulch and ornamental grass, and planted new foliage.

Dumpster Enclosure

Not only were the open-air dumpsters an eyesore, but their visibility caused frequent illegal dumping by non-residents. To combat this, we built a locking louvered dumpster enclosure and assigned each resident their own personal access code. Though large, the 10’ height prevents individuals from throwing their garbage over while the louvered design allows fresh air into the enclosure, which helps combat garbage odor.

Mailbox Station

By refinishing the mailboxes and adding a shade sail, we gave the mailbox station a vibrant new look.

Modern Unit Numbers & Lights

By replacing the dated unit lights and numbers we were able to modernize the overall feel of the complex.

Front Door Rehab

We stripped and repainted the front doors and installed storm doors to each unit.

Building Numbering & Solar Lights

(Placemaking) We designed custom community-specific signage for each building (yellow) and added solar lights to increase visibility at night. With the larger signs and new green lighting, tenants and guests can easily locate their units.

Not only do we strive to make our properties more attractive to potential tenants while investing in multifamily, but to foster a community that residents are proud to call home. Since we've started improving the exterior of Parkins Ridge, we've noticed that tenants are taking better care of the grounds and some have even added their own decor to their front porches.

"A community of pride is a community of opportunity"

The 7 Best Real Estate Investing Books Every Investor Needs to Read

Mon, 10 Jan 2022 14:16:42 GMT

The 7 Best Real Estate Investing Books Every Investor Needs to Read

One thing we love about investing in real estate is that you don’t need a degree in real estate to play the game. You do, however, need knowledge. And the best knowledge comes from books written by people who have already played and know the rules of the game.

With thousands of real estate investing books out there, it can be hard to figure out where to start. We did the research so you don’t have to-- we've read 100+ real estate and investing books. Here’s a list of some of our favorites.

1. What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures

We recommend this book to anyone just starting out in real estate investing. Think of it as the ‘REI Book for Dummies’. It breaks down the different types of investment returns, deal analysis, and different debt calculations.

2. The Millionaire Real Estate Investor

3. The E-Myth Real Estate Investor: Why Most Real Estate Investment Businesses Don’t Work And What to Do About it

4. 40 Ways to Increase The Net Income of Your Rental Property

5.Best in Asset Class: How to Manage Your Multifamily Asset, Avoid Mistakes, and Build Wealth through Real Estate

6. How to Take an Apartment Building from Money Pit to Money Maker

7. The Due Diligence Handbook for Commerical Real Estate: A Proven System To Save Time, Money, Headaches And Create Value When Buying Commerical Real Estate

Financial Repression in the 2020s

Mon, 10 Jan 2022 14:16:42 GMT

Financial Repression in the 2020s

This month our favorite read was an interview (which we highly recommend you read) with Russell Napier , perhaps the world’s top financial historian. For decades, Napier correctly forecasted disinflation as the dominant force in financial markets. He pointed to themes such as aging demographics, cost-saving technology, cheap Chinese exports, increasing debt burdens, and the decline of the velocity of money as key deflationary factors

However, last summer Napier warned US investors should prepare for 4%+ annual inflation rates throughout the 2020s. Two key changes caused his pivot. The first was the rapid growth of the money supply despite the country being in the worst recession since World War II.

The second change was the US government in 2020 intervening in the commercial banking system by telling commercial banks to grant loans to companies. The US Treasury guaranteed loans such as PPP, completely circumventing central banks. As a result, politicians, not central bankers, now control the money supply, and they need inflation to get rid of high debt levels. Napier argued that now that politicians have the tools to create inflation, they will use them.

One Year Later

Now that one year has passed from Napier’s predictions, we find core CPI soaring to 5.4% as of July 13th, 2021.

Most importantly, Napier is now predicting that despite the rise of inflation, “Interest rates will not be allowed to reflect that rate of inflation. That is what changes the entire structure of finance...This is because we will be entering a period of financial repression, where governments keep interest rates below the rate of inflation, just like after World War II.”

For the last 40+ years, bond yields have accurately reflected the inflation outlook. Now they are no longer in a free market, depressed by central bank purchases and regulatory requirements for banks and insurance companies to hold them.

Napier predicts that central bank monetary policy will become increasingly irrelevant versus government fiscal policy. Central banks will jawbone as if they are in control, and it will work for some time because the market is so conditioned that the Fed is the dominant force.

In the short-to-medium term, equities and real estate prices should benefit as wealth will increasingly transfer from savers to debtors. After a few years, the government will cap bond yields, and only then will the masses wake up to the new inflationary paradigm.

Interest rate caps will lead to the misallocation of capital, which typically leads to high inflation and high unemployment, i.e., stagflation . And that’s when limited-supply assets like gold and bitcoin should outperform.

We find Napier’s views particularly compelling as we participate in the investing arena. Place your bets...

Affordable Upstate, Reedy Property Group buy $13.9M worth of properties in Welcome community

Tue, 04 Jan 2022 17:54:00 GMT

Affordable Upstate, Reedy Property Group buy $13.9M worth of properties in Welcome community

Jeannie Putn am January 4, 2022

Affordable Upstate , a regional multi-family investment firm, announced Jan. 4 it has partnered with Reedy Property Group , a full-service property management company, to acquire Fairhill Apartments and Fairmeadow Townhomes for $13.9 million.

The complexes, which are located off White Horse Road in the Welcome community, consist of 151 one-, two- and three-bedroom units of affordable workforce housing.

Following the acquisition, Affordable Upstate and Reedy Property Group have planned to overhaul areas of the properties, including

Outdoor amenities
Communal areas
Property branding

The companies also plan to upgrade each unit’s interior with energy-efficient modern finishes and fixtures.

“We are excited to close on these two multi-family assets and continue our focus on providing quality affordable housing options in Upstate, South Carolina,” said Affordable Upstate co-founder Mario Brown.

Fairhill Apartments and Fairmeadow Townhomes join Reedy Property Group’s property management portfolio of over 1,800 Upstate units.

The communities are also part of Affordable Upstate’s 900-unit workforce housing portfolio across the Upstate region.

PRESS RELEASE ARTICLE POSTED HERE WAS ORIGINALLY WRITTEN AND POSTED BY THE UPSTATE BUSINESS JOURNAL . CLICK HERE TO READ FULL ARTICLE.

Latest Issue

January 2022

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Affordable Upstate News & Blog

Vista West III answers key questions in the local affordable housing

A brilliant day for affordable housing

Affordable Upstate wins Chamber honor

Affordable Upstate named Greenville Chamber Small Business of the Month

Reframing Affordability: How Affordable Upstate Is Quietly Reshaping Greenville’s Housing Future

Affordable Upstate has demonstrated that affordability and scale are not mutually exclusive. But our true impact lies less in volume and more in strategy.

An Updated Look at Greenville’s “Missing Middle” Housing

In Greenville City planning discussions in early 2026 , “missing middle” housing was a major focus for leadership and council members.

Seen in the Greenville News

Check out this great opinion piece in the Greenville News from our CEO, Mario Brown.

Why Business Investors Should Seriously Consider Affordable Housing in Upstate South Carolina

The Upstate is emerging as one of the most compelling investment landscapes for affordable apartments and housing in the Southeast.

Mario on Investor Fuel

Give this great podcast a listen!

5 Key Affordable Housing Investment Trends to Watch in 2026

Here are five major trends poised to define affordable housing investment in 2026.

AU's Mario Brown named to Sc 500 List

The South Carolina 500 is SC Biz News’ first-ever list of the Palmetto State’s most powerful and impactful leaders in business, nonprofits, government and higher education.

$59M refinancing secured for Affordable Housing portfolio

We helped secure almost 600 affordable housing units in Greenville today.

A Year of Impact, Innovation, and Community in 2025

Looking back at our 2025 achievements while previewing what we have in store for 2026

As seen in UpstateBizSc

Mario Brown piece on affordable housing demands makes regional news

Lack of Affordable Housing is Hurting Schools

A lot of places are looking at how to handle the issue of teachers and housing, and South Carolina is not immune from this problem.

Five Ways Greenville is embracing affordable housing

Taking a look behind what Greenville is doing with affordable housing

The need for affordable housing explained in four numbers

We are taking on a behind the numbers look at what is affecting affordable housing in the Upstate of South Carolina. Get ready to learn!

Affordable Upstate featured in The Greenville Blog

Read this great piece from our CEO Mario E. Brown that dives into an important issue in our community

Tackling the issues of The Eviction Crisis

Our CEO Mario Brown recently opined about the issues with the Eviction Crisis in Greenville

Check us out on the Simple Civics Podcast

Affordable Upstate's Mario Brown was interviewed about issues facing the affordable housing community on Simple Civics

Interview with Upstate Trail Talks

Interview with Upstate Trail Talks on the growing world of affordable housing

Affordable Upstate partners with Homes of Hope

AU in the Columbia Business Report

Revitalizing Naturally Occurring Affordable Housing (NOAH): A Value-Add Approach

Revitalizing Naturally Occurring Affordable Housing (NOAH): A Value-Add Approach

What is “Naturally Occurring Affordable Housing” (NOAH)?

The Challenge: New Affordable Construction is Cost-Prohibitive

Preserving Affordability with Value-Add Renovations of Class B/C Propertiesvv

Case Study: Vista West III – Preserving NOAH in Berea (Greenville County)

Improving Quality of Life While Boosting Returns: The Benefits of NOAH Revitalization

A Smart, Impactful Investment Strategy for Upstate SC

Workforce Housing vs. Class A Apartments: Why “Affordable” Matters for Investors

Workforce Housing vs. Class A Apartments: Why “Affordable” Matters for Investors

What Are Class A vs. Class B/C Apartments?

Rent Levels and the Affordability Gap

Occupancy Trends: Stability in Workforce Housing

Rent Growth and Returns: “Affordable” Doesn’t Mean Less Profitable

Recession Resilience and Risk Factors

Upstate South Carolina Case Study: Resilient Demand in a Growing Market

Impact and “Missing Middle” Opportunity

Conclusion: Steady Returns and Community Wins

Sources

Bracing for Stagflation: 5 Ways We’re Supporting Tenants & Safeguarding Investments

Bracing for Stagflation: 5 Ways We’re Supporting Tenants & Safeguarding Investments

1. Open and Transparent Communication

How This Benefits You:

2. Flexible Payment Terms

How This Benefits You:

3. Positive Credit Building

How This Benefits You:

4. Advanced Tenant Screening Practices

How This Benefits You:

5. Prioritizing Retention Through Efficient Property Maintenance

How This Benefits You:

Navigating Challenges with Confidence

How Property Owners Can Reduce Evictions and Strengthen Communities

How Property Owners Can Reduce Evictions and Strengthen Communities

The Person: A Permanent Mark ﻿

The Community: A Shared Burden

The City, State, and Beyond: A Systemic Challenge

The Property Owner: Caught in the Middle

What Property Owners Can Do

The Person: A Permanent Mark

What is Affordable Housing
A Guide for Investors

People of Greenville: Podcast Feature on Mario Brown, Co-Founder of Affordable Upstate