... and the creation today of new affordable housing.

The first thing I would say is, uh, I think Andy said it perfectly.

These unintended consequences usually start from a good place, and they start off with people who work in government and politicians who are, you know, looking at the greater good- Not realizing that when you interrupt an ecosystem, there are consequences, and those consequences are broad.

And so how has it impacted...

So most of the affordable housing have long-term regulatory agreements, so we were never in the business of deregulating.

I, I've been in the business my whole life of creating rent-regulated rental buildings, not deregulating them.

That said, a huge stock of New York City's housing is rent-regulated apartments that, if improved, were able to either have their rents raised or be taken out of stabilization.

Veuillez jouer de manière responsable.

Eli, what effect has this had on your business, especially you're involved with affordable housing and the creation today of new affordable housing? The

first thing I would say is, I think Andy said it perfectly, these unintended consequences usually start from a good place.

And they start off with people who work in government and politicians who are looking at the greater good.

Not realizing that when you interrupt an ecosystem, there are consequences.

And those consequences are broad.

And so how is it impacted? So most of the affordable housing have long-term regulatory agreements.

So we were never in the business of deregulating.

Talk a little better at that.

So let's talk from the perspective of the government coming through today and then some of the work about the armory and others.

Sure.

So thanks again for having me.

It's great to be here with Andy, his longtime friend, partner, trusted advisor.

even surpasses my mother-in-law in terms of giving good advice.

But to be very candid, I think Andy is a hundred percent right.

I think 40 or 50 years ago, real estate in general was a far less institutional business that seemed to be far less regulated and intertwined with legislation.

So let's talk from the perspective of the government coming through today and then some of the work about the armory and others.

sure so thanks again for having me it's great to be here with andy his longtime friend uh partner uh trusted advisor um even surpasses my mother-in-law in terms of giving good advice but um to be very candid i think andy's 100 right i think 40 or 50 years ago real estate in general was a far less institutional business that seemed to be far less regulated and intertwined with legislation I think you had a lot of people that just bought property, and there was only one direction that property only went up.

People bought and held, and financing was far less complex.

You went to a local bank, you shook somebody's hand, you went out for a closing dinner, and that was the end of it.

What's changed is, A, capital markets are far more sophisticated and that makes capital stacks, raising money, the size of deals, the complexities of deals infinitely more complicated than they were when I started.

And I think Andy's 100% right.

I think that today where capital is fungible, right? So when I grew up, People didn't really live in New York and do business overseas or live in New York and buy real estate in Arizona.

you

Now, what goes into an email and SMS marketing strategy coming from that lens?

So something that we did in the early days, and I will say, like, shout out to Cody for also kind of paving the way on this at Jones, was asking ourselves, like, what are the objections? Where is the customer at in their current journey? And what are the objections? And that will change dramatically.

So I'll give you an example.

If somebody signs up for a welcome flow, that means nothing, right? So they didn't purchase.

They just visited your site.

They clicked on the signup.

Now, if somebody visited your site, clearly they're in the funnel, right? Like clearly they didn't just appear on www.myavi.com.

So curious to take from

everybody hears this term, but they're not really sure of the definition.

I think the core definition of what affordable housing is... is that you're trying to not create a budget crisis within a family or a person who's living in an apartment so that they're not spending more than roughly a third of their gross income on housing.

Now, unfortunately, in New York, we're at a crisis where we have a record number of people who are spending more than 50%.

of their income on housing, which just does not leave mathematically enough to cover the other basic essentials of people's lives, whether that's transportation, food, medical, all of the other essentials.

If you're spending over 50% of your gross income on housing, there's just not enough that's left over.

Now, for years, my industry and people both in the public and private sector in affordable housing have been speaking about this as a major problem.

What unfortunately exacerbated the problem is that now we have broader inflation that's not just housing cost inflation, and that remaining portion of people's budgets became even less affordable.

This

everybody hears this term, but they're not really sure of the definition.

Sure.

I think the core definition of what affordable housing is, is that you're trying to not create a budget crisis within a family or a person who's living in an apartment so that they're not spending more than roughly a third of their gross income on housing.

Now, unfortunately, in New York, we're at a crisis where we have a record number of people who are spending more than 50% of their income on housing, which just does not leave mathematically enough to cover the other basic essentials of people's lives, whether that's transportation, food, medical, all of the other essentials.

If you're spending over 50% of your gross income on housing, there's just not enough that's left over.

Now for years, my industry and people both in the public and private sector in affordable housing have been speaking about this as a major problem.

What unfortunately exacerbated the problem is that now we have broader inflation that's not just housing cost inflation, and that remaining portion of people's budgets became even less affordable.

This