Tuesday, Feb 19 2013 3:36PM

Freddie Mac will continue to offer financing to affordable rental units as rates increase.

Freddie Mac plans to continue its focus on providing affordable housing assistance by ensuring rental rates are feasible for a growing number of renters. 

Freddie Mac Senior Vice President David Brickman noted that rental rates have risen in recent years as homeownership shrinks and more people seek out rental homes, apartments and condos. He noted that between 2004 and 2011, Freddie Mac properties gained 5.4 million net-new renter households. Most housing analysts consider housing to be affordable if the amount paid each month on rent and utilities does not exceed 30 percent of consumers' income. However, Brickman said that the number of renters who are paying more than 30 percent of their income on housing is above the 50 percent mark. 

In response, Freddie Mac has provided financing to several rental units and ensured that rates were affordable to those making middle to low-income salaries. Between 2005 through 2012, Freddie Mac financed more than $7.3 billion in seniors housing and $17.4 billion in targeted affordable housing. Freddie Mac noted that it will continue to extend financing to these projects to make renting more affordable as demand strengthens. 

Rental rates have increased dramatically in some areas as potential buyers try to avoid the risk of owning a home in a volatile economy. In cities such as New York, Boston and San Francisco, rental rates have experienced double-digit increased in the last few years. 

For more information, check out this resource: Freddie Mac