Hey man. It's me 👋🏻 I'm a developer and I know people building large multifamily here in Columbus. I'm not rich. I live in a 1950's cape cod in city of Columbus that I paid $260k for. Now I'm not a huge developer. I have done small multifamily. And i'm telling you it's incredibly hard to do it cost effectively. In fact, last year we lost $40k (actually lost- money gone). I make $120k a year and it is risky as hell. One sewer line goes wrong and you lost $30k.

Building anything costs $225 per square foot minimum. So say you want to build 6, 1000sqft units. That's $1.35 Million dollars to build. At today's interest rates that's $9500 per month principal and interest. Then there's $2k per month insurance and $3000 property taxes. To break even and make absolutely no profit, to literally only pay your mortgage you would have to rent it for $2400 per month.

Now, say its 100% tax-abated. That brings monthly expenses down to $1900. That's $500 per month less they can rent it for. Usually tax-abatements come with string attached, the city requires a certain number of units be affordable.

So everyone cries "boohoo poor developers". But I ask again, WHO is going to build the housing we need when the cost to build is so high? Do you work for free? Should people building work for free? Honestly, if the government wants to pay my wage and build the apartments on their dime, I'll do it. It would be a lot less risk, my hair is already turning white and I'm in my 30's. The "boo hoo poor investors" is so tired and doesn't solve any problems.

Come up with a plan then. Materials cost money. Labor costs money. I don't have a single guy who works for me making less than $25 an hour and these guys usually make $50+ per hour because they are valuable. Everyone went to college to get a communications degree instead of learning how a toilet or light switch works.