For Immediate Release
February 24, 2025
Contact: Douglas Robinson | [email protected]
 

NeighborWorks Network Homebuilding Remained Steady in 2024 Despite Higher Interest Rates and Construction Material Costs

Washington, D.C. – NeighborWorks network homebuilders held production steady in the fiscal year that ended Sept. 30, building 747 homes for sale, compared to 751 in the prior period despite increased interest rates and material costs, and tight land availability, according to the latest update from NeighborWorks America. The NeighborWorks network is comprised of locally managed, high-efficiency, nonprofit organizations that provide a range of economic development activities, including building a variety of home-types for sale.  The NeighborWorks network projects an additional 3,700 homes for sale to be delivered through the end of 2027.

“NeighborWorks network homebuilders are solution driven,” said NeighborWorks America President & CEO, Marietta Rodriguez. “Through partnerships with local governments, suppliers and careful stewardship of development capital, NeighborWorks homebuilders exemplify the commitment and vision necessary to turn an empty dirt lot into an American Dream home.

“There is a nationwide shortage of affordable homes for sale on the market, and NeighborWorks organizations are doing their part to alleviate the strain,” added Rodriguez.

Better Housing Coalition, a NeighborWorks network homebuilder based in Richmond, Virginia, sold the final home in its award-winning Armstrong Renaissance community in 2024, despite market turbulence. “Last year was challenging for single-family development because of the continued lower demand in the housing market, a trend which first began impacting BHC in 2023,” explained Jesse Ewald, P.E. a single-family developer at Better Housing Coalition

“Interest rate increases required us to contribute additional and unbudgeted funds to assist buyers at closing. We anticipate demand in 2025 to be similar to the previous two years, with the added challenge of increased material costs. Through everything, however, we remain committed to delivering on our mission to provide for-sale affordable and workforce housing in the Greater Richmond Region.”

Self-help building is a major component of single-family construction in the NeighborWorks network, and this building sector was also affected by earlier inflation spikes and an uneven economic outlook in 2024. “Economic uncertainty, which made it difficult for clients and increased reliance on assistance programs, was a serious challenge last year,” said Macy Self, associate director for LIFT Community Action Agency, a NeighborWorks network homebuilder based in Hugo, Oklahoma.  “Like most builders, higher interest rates and rising material and labor costs affected prices and deterred clients from pursuing homeownership. We anticipate that 2025 will also be challenging as we navigate present uncertainties and potential impacts on our programs. Nevertheless, we remain resilient and committed to improving the lives of low-income individuals and families through service and collaboration, ultimately leading to self-sufficiency.”

About NeighborWorks America
For more than 45 years, Neighborhood Reinvestment Corp., a national, nonpartisan nonprofit known as NeighborWorks America, has strived to make every community a place of opportunity. Our network of excellence includes nearly 250 nonprofits in every state, the District of Columbia, Puerto Rico, and on Native lands. NeighborWorks offers grant funding, peer exchange, technical assistance, evaluation tools and access to best-in-class training as the nation's leading trainer of housing and community development professionals. NeighborWorks network organizations provide residents in their communities with affordable homes, owned and rented; financial counseling and coaching; community building through resident engagement; and collaboration in the areas of health, employment and education.