Workforce housing is a unit built for serving families, which belong to the medium income group explains Maxwell Drever. These individuals with area median income between 80 to 120% form the median income families. The income level of these families is stagnant, and therefore they are struggling to get shelter over their heads. More so, there are other versions of workforce housing in the real estate industry.
The workforce population that forms the backbone of the society has insufficient resources and is currently dropping down in the marketplace. More so, they don’t even have the resources to qualify for luxury housing units and are thus always dependent on government-subsidized housing units. It has created a widening gap between the haves and the have not’s. These are two discrete classes that form the economy.
The increasing housing cost with other commodities has resulted in this widening gap. However, things are changing slowly. Different sections of society are becoming cautious of the sufferings of the workforce population.
Affordable housing and workforce housing
Although people use these terms interchangeably, affordable and workforce housing is not the same. There is a thin line of demarcation between these terms. Every individual interested in this context has to understand the commercial meaning of these terms. Affordable housing is that housing which serve families, which fall below 60% of the area median income. Hence, Maxwell Drever asserts that those with income between 0 to 60% qualify for affordable housing. Governmental programs and local municipalities define these classes.
On the other hand, workforce housing is for families that fall between 60 to 120% of area median income. These are middle-income groups who do not require government-subsidized rent. On the other hand, they need affordable housing units at a reasonable rate. Hence, the figures are on the other side.
The path forward
If you look at the Internet, you will see hundreds and thousands of tips on how you will come up with an affordable housing unit. However, these programs are specific to different countries. Since the problem has a global stance, one country may not apply to the other. Hence, every country has to develop specific strategies and policies to meet the requirements of society.
First and foremost, a positive attitude among real estate investors and landlords is vital. They must understand the pressing problem of the workforce population. Along with this, Maxwell Drever reflects that identifying the area is the first step in creating affordable housing. Along with this, re-purposing of vacant hotels and erstwhile housing units must be the approach of the landlords.
These steps require governmental support and strategies. Hence, landlords and real estate investors must study the government policies in detail to understand what benefits they can draw from these legislations.
Various local housing authorities are working in every locality. Hence, proper care of the building codes is necessary.
With this, landlords must pay attention to notices and strategies covering the rest. When these projects qualify for the standard of the housing project, the following steps become mandatory.
Workforce housing is not only a solution to the problem of the workforce population but hotel owners and landlords. It is because it is a source of regular income for the higher section of society. Hence, it is beneficial both ways.