Housing Shortages: Are We Looking in the Wrong Places?

Question

Lately, I’ve been obsessed with a question: Where’s all the housing going to come from? In my city, vacancy rates are hovering below 2%, rents are climbing, and every year thousands more people show up needing a place to live. Sound familiar? Everyone’s fighting over the same urban scraps—overpriced lots, brutal zoning battles, and competition that’s through the roof. It got me thinking: maybe we’re solving this puzzle in the wrong places.

I’m the CFO of a company that develops, builds, and manages multifamily projects, and we’ve been digging into rural markets in the southeast US—think rural Georgia, Alabama, places like that. Why rural? Land’s cheaper, demand’s creeping up (remote workers and families priced out of cities), and you can actually get a shovel in the ground without a decade of red tape. We’re breaking ground on projects like 12-200 unit townhomes, apartments, and other developments, filling a gap for affordable housing where it’s needed but overlooked. It’s not sexy like downtown high-rises, but the numbers work—steady cash flow, lower entry costs, and tenants who stick around.

Take this: a rural county we’re in just saw a 10% population bump over five years, yet multifamily stock barely budged. We’re not chasing trends; we’re building where the need’s already knocking. It’s not Boise or Austin-level hype (yet), but that’s the point—get in before the rush.

So, here’s my question for you all: Where do you see the next housing boom—and how are you tackling it? Are you sticking to urban infill, flipping in the ‘burbs, or eyeing something off the beaten path? Anyone else betting on rural to solve the shortage? I’d love to hear your takes—challenges, wins, whatever you’ve got. Bonus points if you’ve cracked the code on speeding up a slow city hall!

Excited to swap ideas—let’s figure out how to house the next wave together.

Cheers,

Mike

Robert Rixer · Answer

I love the micro approach. It doesn't matter the macro environment or where interest rates are at, there are always deals to be had in any market using fundamental logic.

Sonya Horn · Answer

Mike,

I think small towns are a very good choice. Many people are indeed moving to less urban areas. I am in a national small town revitalization group and we’re seeing small town growth across the US. The number of people looking for affordability and a sense of community is definitely increasing. -S

Mike Rutherford · Answer

Appreciate the insight! That’s great to hear you’re seeing the same trend in small towns nationwide. Affordability and community seem to be huge drivers—people want out of the high-cost, high-stress urban grind, but they still need quality housing options.

I’d love to hear more about your small-town revitalization group. Are you seeing any common roadblocks to growth—zoning, infrastructure, financing? And how are communities handling the influx of new residents? We’ve found that local governments are often eager for development but don’t always have the resources or experience to streamline the process.

Also, curious—are you seeing more build-to-rent developments popping up in these areas, or is it still mostly single-family? We’re leaning into apartment projects to hit that middle ground between affordability and density.

Looking forward to swapping more ideas!

Cheers,Mike

Austin Wolff · Answer

As someone who looks at macro data all day... I couldn't agree more!

Kim Meredith Hampton · Answer

Mike

I find most multi family deals in C areas that are in the verge of gentrifying or in tertiary markets like you are looking at! Obviously, we need to focus on who we elect into office and fight for the rights on zoning, even though you get negative feedback for density and ADUs. You will see more of these types of changes coming out of government, we can’t build all A properties at ungodly numbers for dirt and building costs! We also need municipalities look at tax incentives for builders. There is not a one answer fits all

Mike Rutherford · Answer

Hey Kim,

Great points—tertiary markets and C areas on the verge of gentrification are exactly where we’re seeing solid opportunities too. The demand is real, but local governments need to catch up with zoning reform, density allowances, and incentives if we’re going to make meaningful progress.

Totally agree that electing the right officials matters. The resistance to density and ADUs is frustrating, but it’s becoming harder for cities to ignore the affordability crisis. I think we’ll see more municipalities start offering tax incentives, fast-track permitting, and infrastructure support—because, like you said, we can’t just keep building Class A at sky-high costs and expect it to solve the problem.

Curious—are you seeing any cities or counties that are ahead of the curve on zoning or incentives? We’ve had some success working in rural counties where leadership is pro-growth, but it’s still a mixed bag.

Let’s keep the conversation going—housing solutions are going to come from investors and builders pushing the envelope, not just waiting on policy changes.

Cheers,Mike

Housing Shortages: Are We Looking in the Wrong Places?

Housing Shortages: Are We Looking in the Wrong Places?

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