The United States faces an unprecedented housing affordability crisis. According to Freddie Mac, the nation has a shortage of 3.7 million homes, while the Harvard Joint Center for Housing Studies reports that the home price-to-income ratio has reached 5.6, its highest point on record dating back to the 1970s.

This shortage disproportionately impacts middle-income workers, professionals who earn too much to qualify for traditional affordable housing, but not enough to comfortably afford market-rate units.

Students were tasked with developing creative investment strategies for a workforce housing fund that could provide affordable options for middle-income renters. They were asked to go beyond traditional approaches, blending creative thinking with practical market realities.

Innovative ideas to tackle the challenge

The winning team from the University of Florida – Warrington College of Business exemplified the competition's spirit. They crafted a sophisticated two-part investment strategy that leveraged a recent Florida law, creating unique debt and equity opportunities for investors.

Passed in 2023, the Live Local Act introduces unique tax exemptions and zoning provisions that specifically target the workforce gap, which the state defines as households earning up to 120% of the area median income.

The University of Wisconsin team took a similar approach, focusing on San Diego's Industrial Infill program. By capitalizing on green development incentives and streamlined permitting processes, they highlighted the competition's core themes of aligning innovative thinking with local market opportunities.

Insights from industry leaders

Industry experts also played a crucial role in shaping the competition. A distinguished panel of judges, including leaders from the National Multifamily Housing Council (NMHC), TruAmerica Multifamily, Bridge Investment Group, GID, and other prominent real estate firms provided valuable feedback. They evaluated teams on creativity, presentation quality, and the ability to translate innovative ideas into actionable strategies.

Prior to the competition itself, a four-part expert webinar series offered students unique insights into affordable housing challenges to help shape their thinking. Industry speakers from Berkadia, NYU Furman Center, TruAmerica Multifamily, and the National Multifamily Housing Council shared real-world perspectives. This was designed to help students understand the nature of the challenge and to gain insights into the complex landscape of housing finance.

Investing in future leadership

For Berkadia, the competition isn’t a one-off but rather a part of a broader commitment to developing future real estate leaders and addressing critical industry challenges. By creating a direct pathway between academic learning and industry needs, Berkadia aims to inspire the next generation of real estate professionals equipped to make headway on one of the nation’s most challenging social issues.

The competition looks forward to future iterations. Berkadia will continue exploring capital markets challenges that intersect with public policy and private investment to come up with innovative and impactful solutions.