As a developer and commissioner on the board of the Harris County Housing Authority, I’ve spent nearly two decades at the intersection of public policy, real estate finance, and community development. I can say with confidence that affordable housing is not a broken system, rather, it's a complex one that relies on delicate partnerships between private developers, government entities and, crucially, the financial sector.
By: Laolu Davies-Yemitan, Five Woods Realty
Recent investigative reporting by the Houston Chronicle has highlighted what some view as the “broken” nature of affordable housing in Houston, questioning who truly profits and whether the system serves those it’s intended to help. These questions are fair and long overdue, and deserve nuanced, informed answers that go beyond headlines and into the mechanics of what it takes to create and preserve affordable housing.
As a developer and commissioner on the board of the Harris County Housing Authority, I’ve spent nearly two decades at the intersection of public policy, real estate finance, and community development. I can say with confidence that affordable housing is not a broken system, rather, it’s a complex one that relies on delicate partnerships between private developers, government entities and, crucially, the financial sector.
Let’s be clear: creating affordable housing is not easy money. Developers who specialize in this sector often operate on thinner margins, longer timelines, and higher public scrutiny than those building market rate housing. We contend with intense competition for limited public resources, and evolving regulatory frameworks, all while trying to keep costs down and quality up. It is important we make a distinction between affordable housing built with tax credits from those built leveraging property tax exemptions. The former targets low—up to—moderate income households, while the latter targets largely moderate income households, hence the accusations that such housing serves no benefit to low-income households.
Notwithstanding, housing affordability is a systems issue, laden with complexities and a need to deliver housing for households at each level of the low-to-moderate income scale. This requires developers being incentivized to create much needed housing supply with financial structures acceptable to their bankers, who operate based on strict lending guidelines. Therefore, the notion that affordable housing is riddled with profiteering oversimplifies a more nuanced reality. If anything, there aren’t enough opportunities for well-capitalized, mission-driven developers to navigate this challenging and politically fraught space in deliver much needed housing projects that are bankable.
That’s not to say the system is without flaws. It needs greater transparency, smarter oversight, and more accountability—particularly in how public subsidies are awarded and monitored long-term. But we also need more collaboration and cooperation. The public sector can’t do it alone, and neither can the private sector. We need innovative partnerships focused not on blame, but on solutions.
Affordable housing development is one of the few places where capitalism and social good can—and must—coexist. But if we solely focus on demonizing the very actors capable of bringing new housing online, we risk suppressing the very investment and innovation that our communities desperately need.
At Five Woods Realty, we don’t just build units—we build communities grounded in sustainable, mixed-income models that balance economic viability with social responsibility—that working-class families can be proud to call home.
Let’s reframe the conversation and talk about how we build a system that works better—for residents, taxpayers, and yes, even for responsible developers. Because when we get it right, everyone wins.
