It is becoming increasingly difficult for the middle-class citizens of America to afford to rent a well-maintained home. Being able to buy a new house seems like a dream for a majority of the people. People and families who are stuck between luxury housing and truly affordable housing seem to be struggling the most at the moment. According to Maxwell Drever workforce housing could be the solution to this problem. Read on to learn more about this.
What is Affordable Workforce Housing?
Workhouse housing is basically a housing unit designed for families with a median income. A household that earns up to 100% of HUD Area Median Income (AMI) would be eligible for affordable workforce housing. The lease agreement or deed restriction can limit the annual rent increases for such units.
Benefits of Investing in Workforce Housing
The entire planet is going through an ongoing economic crisis. In such times, it is important to create long-term income sources for yourself and your family. Most people have started understanding the importance of making investments to secure a future, yet they find it hard to figure out how and where to invest.
Maxwell Drever suggests that investing in workforce housing is an untapped market with great potential for growth. There is a severe shortage of such housing units, which is making it difficult to house all the families that may be eligible for affordable workforce housing. This high demand and low supply of workforce housing units offer the perfect investment opportunity.
Following are some potential benefits you will reap if you choose to invest in workforce housing.
1. Little to No Competition
As discussed earlier, there is a lack of workforce housing units. Therefore, the chances are that your project will be the only workforce housing unit in your area. This means you will certainly receive multiple offers and won’t have trouble finding potential tenants. If you want to expand your portfolio, you can also start investing in other projects in neighboring areas.
2. Receive Rent on Time
Generally, market-rate housing can be expensive, requiring workforce employees to pay up to 50% of their income to afford rent. The purpose of workforce housing is to make things more affordable for people as they only need to pay up to 30% of their income for rent and other costs. According to Maxwell Drever, this would allow your tenant to be punctual with rent. It is likely that the ROI won’t be as high as you expect, but you will receive a steady cash flow.
3. Stable Income
In addition to providing s steady cash flow, workforce housing is expected to remain in high demand for years to come. In fact, it is estimated that the undersupply will not be overcome for at least the next 50 years. This is why investing in workforce housing at the moment can help secure a long-term income source that could potentially continue for the rest of your life.
If you are planning on investing in workforce housing, but aren’t sure where to begin, get in touch with Maxwell Drever today. We will guide you and help you make the right call when it comes to making the investment.