ABOUT THE AUTHOR
James Lewis brings a wealth of experience and expertise to the discussion of affordable housing. His journey includes:
Academic Pursuits: James attended the University of Utah from 1961-1966 earning a Bachelor’s degree in Banking & Finance and an MBA.
Military Service: He served as an officer in the U.S. Air Force from 1966- 1971.
Financial Expertise: From 1971-1981, he worked as a stockbroker at Dean Witter & Company in San Francisco and Salt Lake City.
Real Estate Ventures: From 1981-1987, he transitioned into the real estate industry, operating as a Realtor in Park City, Utah.
Subsequently, he established himself as the Principal Broker/Owner of Lewis, Wolcott & Dornbush Real Estate, which was eventually acquired by Sotheby’s International Realty in 2008. During this time, he played a key role in single-family and condominium development projects Park City and Salt Lake City, Utah.
Current Endeavors: James is presently an Associate Broker and Senior Partner at Berkshire Hathaway Utah Properties located in Park City, Utah. James Lewis combines his diverse background and in-depth knowledge to present innovative solutions to the challenges of affordable housing in his book, “A Solution to Affordable Housing”.
His experience in finance, real estate, and business uniquely position him to address this critical issue.
A Solution to Affordable Housing
- Affordable housing is defined as housing that costs no more than 30 percent of a homeowner’s housing expense or 30 percent of a renter’s rental expense.
- Examine the major problems that are considered to be obstacles to achieving affordable, quality housing in today’s increasingly high-cost environment.
- Consider a simple new idea that provides a path to a solution by combining lessons from the past with lessons emerging from today’s financial markets.
- Understand the benefits of a solution that does not rely on government support, works for low-wage workers and wage earners in the top tax brackets, and is scalable and easy to understand.
After you finish reading “A Solution to Affordable Housing”, you are invited to comment on any aspect of the book.
- If your perspective is based on personal experience with cost-burdened housing, please share your opinions on the accuracy of problem descriptions and the workability of the solution offered. Opinions from unions are of special interest.
- If you are an employer experiencing recruiting and retention challenges combined with rising cost of living demands from your workforce, let me know your thoughts on the practicality of the solution offered for your situation. Opinions by non-profits, schools, and government entities at all levels are of special interest.
- I am interested in hearing new views and revising old ones. Everyone who reads the book is invited to join me as a partner in searching for reasons I may be wrong. Since affordable housing data and new developments change daily, I will continue to update and expand on the topics addressed in the book. I hope you will follow the ongoing UPDATE section of this website.
The only investment required is the purchase of this book and the time you spend reading and evaluating its contents.
Proceed to get book detail and purchase the book.
Join the Discussion here:
What do you suggest as a solution for employers who may be cash rich enough to do this, but meet resistance from shareholders who would prefer direct capital investments within the company (like for R&D) or stock buybacks?
Thanks Brian, Your question spotlights a problem that has affected more employers and employees in recent years as companies grow and founding owners retire or choose to sell to private equity investors. Private euity’s capital is mostly raised from other institutions who manage money on behalf of an estimated 20 million people including investors like university endowments and insurance companies. The early leveraged buyouts of the 1970’s have given way to the index funds of today, which are connected to an estimated one in nine jobs in the US private sector economy. A recent book entitled “The Problem of 12 : When a Few Financial Institutions Control Everything”, by John Coates, provides expert analysis and recommendations concerning the author’s conclusion that American capitalism is dominated by 12 insufficiently accountable institutions. The rise of index funds and private equity is not identified as a problem that can be solved, but only managed. In the initial period of adoption of employer/employee housing partnerships, companies whose investments are in the hands of these dominant financial institutions will not be open to employer/employee housing partnerships. Private equity funds lock in their investors for five years or longer, have limited transparency, have the American Investment Council that spent $2.9 million on lobbying in 2022, and charge significant fees. As one of the most dominant private equity firms Blackrock, with $10 trillion under management, owns one of the largest portfolios of single-family rental homes in the US. It’s hard to imagine they would welcome competition from employer/employee partnerships who do not raise rents based on the theory of “whatever the market will bear”, or practice other forms of renter abuse. I do believe R&D is a consideration that may have priority over affordable housing needs in some companies’ allocation of profits, but can easily coexist with housing partnerships. I see employer/employee housing partnerships as important direct capital investments. I am not a believer in stock buybacks.
Fortunately there are an estimated 1,370,000 US companies with more than 25 employees, plus another 4,780,000 firms with less than 25 employees. The challenge is now finding and informing companies where company owners still retain control over company decisions in the allocation of company profits. Please let me know of any companies or organizations you are familiar with who meet that requirement. Jim
I am a Realtor and it seems to me that you are suggesting a world without Realtors and the mortgage lenders we rely on. In my city, Realtors have always supported affordable housing.
I have been a Realtor since 1981 and I have seen many changes in how residential real estate sales and related mortgage lending is conducted. I believe the importance of professional Realtors has only increased over that time. As a Realtor you are aware of the current controversy regarding how and how much Realtors are paid and how seller’s agents and buyer’ agents share overall commissions. I’m sure neither of us can predict the outcome of that controversy or how long it will take to arrive at a final answer Although our markets are quite different, we probably share a history of transactions that succeeded and resulted in happy clients and transactions that failed after much time and personal marketing expense and less happy clients. Overall I have not felt overpaid for my work as a Realtor.
In my upscale market which I described in my book, roughly half of all transactions are for cash with no mortgage involved, but I’m guessing more of the transactions in your area do involve a mortgage. I see the job of a Realtor working on behalf of an employer/employee partnership as much like it is now for a cash buyer seeking investment property. The employer involved in such a partnership would retain the services of a real estate brokerage in their area and select a residential agent or team qualified to locate property appropriate for the company’s employee’s and the employees the company needs to recruit. Commissions would be negotiated between the brokerage and the employer and then between the brokerage and the agent. Such new activity in the employer’s market area would not involve a mortgage broker, but would not present any new lender competition for the area’s mortgage lenders. Since the partnership’s tenants are the company’s employees, commissions from rentals would not be a source of Realtor income.
I see such activity offering a competitive advantage to the employer/employee partnership over the remote, often algorithm based acquisition programs of private equity capital. I believe that advantage will be shared by the Realtor, because it is based on the employer’s knowledge of his community and his employees who will occupy the homes acquired as tenants. Properties to be held long term by employers and purchased at fair value will reward the employer with advantages in property selection and open up future opportunities for the realtors involved. Employee tenants no longer burdened by residential mortgage debt would be free to explore other investments.
The homes acquired by such partnerships would be well maintained, but would be much less likely to return to the local inventory of residential homes in the short term. The current situation of ownership often lasting for short durations creates a situation where sellers expect home price increases at time of sale to cover their purchase and sale expense plus an investment return. I’m sure you have dealt with unreasonable seller expectations based on such situations. Residential property inventory shortages in the partnership’s area of interest would lead to increased incentive for built-to-rent homes and the company’s real estate team would continue to benefit.
If you or your Broker would like to order additional copies of my book as a sales aid in contacting companies in your area who might benefit from looking into employee/employer housing partnerships, let me know.
Thanks, Jim