Affordable housing refers to a type of housing that is affordable for workers and service providers near their work location. These include homeownership and rental housing for moderate-income families with an area median income of 80-120%. The workforce is the largest service provider in the economy.
Because it cuts down on commute time and reduces regular expenses, these people prefer to live close to their work location. There is not enough affordable housing for the workforce in the city’s center. There is therefore a gap between supply and demand.
There are many definitions of workforce housing. However, these residential units cater to the middle-income group. About 30-40% of the workforce spends their income on rent. It is difficult for them to afford more to rent a luxury apartment.
Deep dive into the crisis
As we have seen, the workforce population includes service providers such as firefighters, nurses, teachers, and police officers. They are an integral part human society. These individuals cannot afford to live in affordable housing near their job area. They are forced to live in the suburbs because of the high cost of renting residential units in the industrial hub. It increases their travel time and causes economic hardship. These individuals are also struggling to meet their ends due to stagnant wages and financial hardship caused by the COVID-19 epidemic.
The most recent trend
Many community groups have considered the housing shortage in this current environment. Different philanthropic organizations and private associations have begun policies to address this problem. Maxwell Drever claims that both the state and federal governments have established various policies and programs in support of real estate buyers and investors.
Multiple solutions are available to address the root cause of the shortage of housing units. Affordable housing is not just for the working population. This affects all segments of society.
The city’s shortage of laborers also affects the employers and means of production. The problem has been exacerbated by the shortage of housing units in the city’s center. The subject does not just affect the workforce, but all segments of society.
The way forward
Policymakers and private institutions recognize the importance of transportation costs and other costs on the workforce. They are therefore trying to give an impetus through various initiatives and policies for housing construction. Hotel owners are also stepping forward to turn their properties into homes. This is not just the responsibility of landlords and hotel owners, but all members of society.
Maxwell Drever believes that the best way to assist real estate investors as well as hotel owners in transforming their properties into housing units is to combine the efforts of both private and public institutions.
Each section of the community’s positive attitude will have an impact on the supply of residential units. To reap the tax benefits and building codes, real estate investors as well as hotel owners must be able to do an accurate analysis.