According to Maxwell Drever, Workforce housing had helped millions of working-class U.S Citizens in times when accommodation had become a luxury.
Urban Land Institute defines workforce housing as a housing facility provided to workers serving the people. Like teachers, police officers, firefighters, and others who are integral to a community yet often cannot afford to live in the communities they serve.
ULI states that workforce housing serves households to make 60% to 120% of the area median income (AMI). Yet, the hurdles to increasing the stock of workforce housing remain significant.
This article will briefly discuss the hurdles faced by workforce housing.
What Are The Challenges With Workforce Housing?
Increase in land prices
With mature economic recovery and land prices have gone up, there’s no room for new workforce housing units. In previous years, the land was affordable, interest rates were low, construction cost was reasonable, and it was relatively easier to acquire mixed-income properties.
The government encouraged builders to spare a percentage of their units for affordable houses in certain income ranges through subsidies. With land prices touching the sky, the once-affordable housing is out of reach.
The available housing is far away from workplaces.
The idea behind workforce housing was to provide accommodation to the working class near their workplaces to cut down the commute cost and make living standards more affordable.
However, with densely populated urban areas, workforce housing is suggested to be shifted to the suburbs. The bread-winners of low to middle-income households find it very challenging to cover the commute cost and pay rent for the house away from their workplace.
Workforce housing confused with affordable housing- the eligibility battle.
The ULI has stated the eligibility to apply for workforce housing, and workers earning below $60 of the AMI are eligible for affordable housing.
Despite the classification, there’s chaos amongst the workers as the housing facility has been distinguished based on standards, giving the rich a benefit over the poor. The idea was to provide affordable housing for the “workforce,” including the bus drivers, farmworkers, health aides, and cashiers, yet their low income doesn’t make them eligible for better living standards.
Wrong advantage of the benefit
With politically attractive professions, the working class in the moderate to the middle-income range has become more laid back to progress for better working opportunities as their basic needs are being met. However, the more deserving candidates cannot avail of the facility due to exhaustion.
Bottom Line
Serving the necessities of the people who battle to find accommodation that fits their financial plan is essential and needs consideration Maxwell Drever, the Founder and Chairman of DCM states.
Progress in this matter is only possible when the real estate industry, municipalities, financial institutions, and the central government all work together to embrace a scope of changes that make new developments more achievable on a wide geographic scale.
Maxwell Drever offers special housing plans for eligible families to apply for workforce housing as per the Average Median Income (AMI). Visit their website to learn more.
