One of the largest states in America, Philadelphia has a population of more than 1.6 million. The lack of affordable housing in Philadelphia is a serious issue. The difficulty has become progressively difficult over time as a result of advancements and improvements. According to Maxwell Drever, the issue has gotten worse since the COVID-19 outbreak started. Due to supply chain issues, which have made the demand and supply imbalance for the segment worse, the industry expects a collapse.
According to a recent survey, 130,000 households in Philadelphia currently earn less than $20,000 each year. They consequently wind up paying more for housing than they can afford. They find it very challenging to live honorable lives going forward as a result. Additionally, Philadelphia’s current housing stock is gradually disappearing. Maxwell Drever observes that population numbers are also falling at the same time.
For the different parties involved in the affordable workforce housing business, these issues together pose a significant challenge. Here are some of the most significant issues that Philadelphia’s affordable workforce housing industry is currently confronting, along with solutions.
The Housing Crisis in Philadelphia Explained by Maxwell Drever
Philadelphians are faced with a tremendous dilemma. More than 31,000 individuals are currently crammed into a small space. In addition, an extra 60,000 units are needed to address the state’s housing crisis. The people won’t be able to purchase the homes if they aren’t in the affordable range. Another issue is that 17% of Philadelphians spend more than 50% of their income on rent.
Declining Population and Aging Homes
Housing in the city was built in half before 1956. As Philadelphian homes get older, more maintenance is needed. The situation is made worse by the aging population of the city. Thirty percent of homes are owned by people 65 and older, many of whom are low-income. According to Maxwell Drever, older residents are less able to maintain their homes updated, and a backlog of unfinished work frequently causes abandonment.
Resources at Hand Are Not Enough
Philadelphia consistently struggles with a lack of funding to address the workforce housing issues. Over time, the state’s federal entitlement has decreased dramatically. Due to this, investments in house production have also decreased. As a result, it has become more challenging for consumers to discover additional projects that fit within their budget due to the declining availability. The issue has gotten worse as a result.
A Housing Trust Fund Is a Realistic Alternative per Maxwell Drever
Maxwell Drever notes and the vast majority of residents, that a Housing Trust Fund is one of the most practical solutions to Philadelphia’s affordable housing crisis. The need for this sector’s revival has grown as funding for affordable housing is running out. The trust fund will provide appropriate investment opportunities and leverage for future funds needed to address the affordable housing crisis.
Conclusion
The State of Philadelphia is essential to the growth of America, but the lack of affordable workforce housing has gotten worse. Some of the biggest issues the sector is dealing with include a declining population, aging properties, abandonment, and underdeveloped neighborhoods, Maxwell Drever concludes.