According to a survey made in 2019, by the Lincoln Institute of Land Policy (LILP), close to 90% of 200 cities globally were considered unaffordable to reside in. The statistics were based on the average house cost associated with the median income explains Maxwell Drever. The effect of the pandemic outbreak has aggravated the housing crisis. Also, the government packages that got created to do away with the economic disaster proved unsustainable for the long run. Based on the information from LILP it shows that even though the household debt can boost economic expansion and employment for the time being, the households will get compelled to for repaying the loans.
Maxwell Drever says that this leads to debt damaging the economy for the future. Hence, the concept of affordable workforce housing is advantageous for both the economy and the homeowners.
The absence of houses
Since 2000, the house cost has gone up by about 40% in the United States, thereby making the median home in about 200 cities in the U.S $1m. Today, not everyone can afford homeownership. And this issue was also got mention by the National Low Income Housing Coalition. Which found that the renters who are working about 40 hours weekly and have a minimum earning aren’t able to stay in a two-bedroom accommodation in the United States.
A prominent reason for the new house shortage is the exclusionary zoning laws, along with community bans from the US on a few new developments. Furthermore, there are rules for creating minimum lot sizes or the need to add a specific number of parking spots to every development.
The cost solutions to opt-in for
Even though there are ample subsidies accessible for the typical low-earning housing. The subsidies and programs reserved for affordable workforce housing are lesser. Hence, that created the requirement of creative solutions in finances so that one can generate more from less. Usually, the various layers of investments and loans should be the funding base. One can start by having access to the LIHTC. There need to be other assistive services and funding tools depending on the housing project and the area.
Additionally, it will change the game once the private developers get involve. They can come up with buildings that have the finish and design based on the current market trends. The final product is appealing compared to the public authorities’ buildings that get develope keeping in mind pragmatic goals.
Allowing the public to take part in the housing decision making
Today, Maxwell Drever says that it is necessary to raise awareness. About the perils of the housing crisis and the affordable workforce housing requirement. It is essential to involve the public in the decision-making process so that one can arrive at better solutions. The residents of a certain area should be allow to share their views and add to the decision-making. Which will positively impact society. The residents must take part in such awareness programs wholeheartedly. Also, the developers should ensure that such programs have vital data, are transparent and impacts the decision quality.