{"id":334468,"date":"2025-10-26T19:18:21","date_gmt":"2025-10-26T19:18:21","guid":{"rendered":"https:\/\/www.europesays.com\/us\/334468\/"},"modified":"2025-10-26T19:18:21","modified_gmt":"2025-10-26T19:18:21","slug":"habitat-for-humanity-ceo-reflects-on-us-housing-affordability-crisis","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/334468\/","title":{"rendered":"Habitat for Humanity CEO reflects on US housing affordability crisis"},"content":{"rendered":"

Jonathan Reckford jokes that before he became CEO of Habitat for Humanity International<\/a> he couldn\u2019t really keep a job.<\/p>\n

In the two decades after he graduated from the University of North Carolina-Chapel Hill, Reckford had been a financial analyst at Goldman Sachs, coach of the Korean rowing team for the 1988 Olympics, and held executive and managerial positions at Marriott, Disney and Best Buy. He was executive pastor at Christ Presbyterian Church near Minneapolis, when he was recruited to lead Habitat in 2005.<\/p>\n

What Reckford did not expect was how the twin disasters of the Indian Ocean tsunami<\/a> and Hurricane Katrina<\/a> would make the global housing nonprofit expand its work so quickly. Or that they would make building affordable housing such a major priority.<\/p>\n

\u201cIt was an inflection point,\u201d Reckford, 63, told The Associated Press in an interview. \u201cThose two giant disasters forced Habitat to change in some ways that I think had long-term benefits. We were designed as a grassroots movement to build a few houses in thousands of locations. Suddenly, we needed to work at scale in a few countries in Asia and then across the Gulf Coast. I\u2019m really proud of these enormous efforts.\u201d<\/p>\n

Reckford talked about other lessons learned in his 20 years leading Habitat, as he prepared for the annual Jimmy and Rosalynn Carter Work Project<\/a> \u2014 the first since the death of Reckford\u2019s \u201chero and role model\u201d President Carter in December<\/a> \u2013 which will build 25 sustainable homes in Austin, Texas, starting on Oct. 26. The interview was edited for clarity and length.<\/p>\n

I was in New Orleans in June and some areas are still not what they used to be. But so much of it is back.<\/p>\n

Exactly. One thing we certainly see everywhere in the world \u2014 global North or global South \u2014 is it\u2019s 5 to 7 times cheaper to invest in mitigation than it is to fix stuff after the disaster. Another thing for the public to know is about 80% of the funds after a big disaster go to the relief effort. You certainly need all of that relief effort. But then there\u2019s very little left for long-term recovery. And the practical reality after these big disasters is that it\u2019s a 10-year cycle, a 15-year cycle to really come back.<\/p>\n

The Trump administration has changed its Federal Emergency Management Agency funding and declined to provide mitigation funding<\/a> for states. Does that worry you?<\/p>\n

It does because we\u2019re seeing more extreme weather. It\u2019s not about politics. We\u2019re having more flooding events and we have an insurance crisis from an affordability perspective. We\u2019re investing in fortified housing. We always want to build relative to the risks in the area and we\u2019ve had a really good record. We\u2019re trying to do it to convince the insurance industry that families should get lower insurance payments because we\u2019ve created safer housing. It\u2019s just cost effective. It makes more sense to invest in lowering risk because it\u2019s incredibly expensive to do the rescuing afterwards.<\/p>\n

What accomplishment are you proudest of in the past 20 years?<\/p>\n

The day after I was announced, we drove and built the 200,000th Habitat home in Knoxville, Tennessee, and that meant Habitat had helped about a million people worldwide. As of last year, we\u2019ve helped another 61 million people. A big piece of that I would say was changing our framing question from \u201cHow many houses can we build?\u201d which was a really good question, to \u201cWhat would it take to actually address the housing need?\u201d<\/p>\n

Your MicroBuild Fund is part of that.<\/p>\n

What we found, especially in middle- and low-income countries, is that only about 5-10% of the population have access to a bank loan for housing. We started lending money to microfinance banks and training them on how to do home improvement lending. <\/p>\n

Those experiments went well enough that 12 years ago, we launched the MicroBuild Fund. We raised $100 million \u2014 borrowed $90 million of that, which was the first time we\u2019d ever taken on debt \u2014 and now, 12 years later, we\u2019re winding that fund down and getting ready to launch an even bigger fund. <\/p>\n

The fund has loaned out $230 million to 56 microfinance banks in 36 countries. Those banks found their home loan repayment rates have been as good or better than their small business loans, so it\u2019s created a new business channel for them. It\u2019s directly helped a million people make home improvements. <\/p>\n

And those banks have now put in $1.1 billion of their own capital, so we\u2019ve actually started to show proof that there is a market opportunity for giving small unsecured home improvement loans to very low-income families to do home upgrades. This is scalable on a level that we can\u2019t match. It\u2019s a much greater number than we could ever build.<\/p>\n

In the U.S., in the past 15 years after the housing bubble burst<\/a>, it seems the idea of what Habitat does and the importance of affordable housing<\/a> has become more widely known. But it also seems like for more people, achieving it is further away.<\/p>\n

Yeah, I\u2019m sad to say you\u2019re right. I\u2019ll give you an oversimplified, quick version of how I\u2019ve seen this happen. We\u2019ve always had an affordability challenge. But what\u2019s really shocking in the last six years is how much worse it\u2019s gotten.<\/p>\n

If you go back to the housing crisis, lots has been written about what went wrong and how that sort of corrupted the whole housing value chain. But what really happened, in my view, is if you look at the small builders or the big builders after the housing crisis, the big builders got recapitalized and came back. The small builders didn\u2019t. And they represented, depending on the market, 50-60% of the housing supply. <\/p>\n

As we started under-building, initially, there was a ton of housing. But we had ten, 12 years of under-building by hundreds of thousands of units a year. The cumulative impact of that starts to add up. We need an \u201call of the above\u201d approach to address that.<\/p>\n

______<\/p>\n

Associated Press coverage of philanthropy and nonprofits receives support through the AP\u2019s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP\u2019s philanthropy coverage, visit https:\/\/apnews.com\/hub\/philanthropy<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Jonathan Reckford jokes that before he became CEO of Habitat for Humanity International he couldn\u2019t really keep a…\n","protected":false},"author":3,"featured_media":334469,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[852,37055,64,60,57,75189,29606,59,67648,165657,256,9207,358,20862,5028,61,67,132,68],"class_list":{"0":"post-334468","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-affordable-housing","9":"tag-best-buy-co","10":"tag-business","11":"tag-financial-services","12":"tag-general-news","13":"tag-habitat-for-humanity","14":"tag-hurricanes-and-typhoons","15":"tag-inc","16":"tag-indian-ocean","17":"tag-jonathan-reckford","18":"tag-philanthropy","19":"tag-small-business","20":"tag-texas","21":"tag-the-goldman-sachs-group","22":"tag-tx-state-wire","23":"tag-u-s-news","24":"tag-united-states","25":"tag-unitedstates","26":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115442083896179056","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/334468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=334468"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/334468\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/334469"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=334468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=334468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=334468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}