Workforce housing is a residence that comes within the affordability of median income groups and is close to their job location says Maxwell Drever. These are rental houses or home ownerships that are reasonably afforded by middle to moderate-income groups and play a critical role in the job centers. If you take a look at urban institutes, you will understand that workforce housing are those residences that are affordable by households who earn between 60 to 120% of median income.
Although you will find other variations in the definition, the above mentioned is the most acceptable purpose of workforce housing. Around 80% of median income groups find it challenging to get affordable houses close to their job location. Hence, workforce housing has become a growing challenge in developed and developing nations. Firefighters, police officers, teachers, and others are an integral part of this community. Moreover, young professionals also form a vital part of the workforce population. These are some of the characteristic features of workforce housing.
The recent trend of workforce housing
The present economic trend and housing overview dictate that the housing market has been severely affected all across the globe. However, foreclosure is not a brand-new phenomenon, the scale, and scope of foreclosure increase with every passing year. Various factors have contributed to this trend of foreclosure. The current crisis has a lot to do with lack of economic incentives, fraudulent underwritings, wrong decisions of investors and purchases, reveals Maxwell Drever. Hence, the workforce population is struggling to get a shelter close to their work centers.
Although residential prices have seen a decline, the cost of purchasing and maintaining a house is so high that these individuals find it hard to buy a property. More so, they are struggling with transportation costs that are increasingly rising and making it difficult for them to meet both ends. Hence, they get forced to live away from urban centers into the suburban areas that seem less expensive. However, the rising transportation expenses have added to their overall monetary burden.
Intelligent solutions to workforce housing
There are multiple solutions to the problem of the affordable housing crisis. Maxwell Drever says that the first is governmental financing programs like mortgage, revenue bonds, tax credit, housing finance, local financial programs, etc. These are steps that higher authorities will have to take to limit the problem that is soon aggravating.
Secondly, governmental agencies will have to bring about regulatory changes designed to increase the supply of affordable units. From inclusionary zoning to zoning changes and building code modification. Governments will have to streamline different processes and come up with fee waivers.
Planners, developers, and investors will have to look into this new sector and invest. Smart growth must be a joint venture of governmental and non-governmental organizations. Remember that it will have long-term implications only when you take steps. Apart from this, the fiscal impact will affect every sector of society. Hence, there are chances of maximizing benefit and minimizing the risk.