Simply put, the workforce housing got developed to cater to households between lavish housing and low-cost housing says Maxwell Drever. Today, you will come across varied versions of workforce housing. Usually, it factors within the income level where you get to serve families that has an income of 80% to 120% of the median income. The precise amount gets based on the state and county you reside in.
When it comes to the workforce housing domain, the firms are usually aiming to develop a product that caters to the working households. Also, unfortunately, the income is insufficient for several such families, and they are presently dropping to reduced income. It means they don’t have the means to afford high-cost homes. Hence, the government and other authorities must commence affordable workforce housing projects.
Hence, Maxwell Drever says that it develops a wide gap between these two segments. It gets caused because the housing costs and rents are high in the urban areas. On the other hand, the wages remain stagnant. Hence, the families are witnessing a housing challenge.
The affordable housing and workforce housing
Often people confuse the terms workforce housing and affordable housing with one another. It’s not surprising that both these terms get used broadly. Here is what you need to know about both of them:
The most widely accepted definition of an affordable housing as per the industry standards is housing that caters to families that are beneath or at 605 of the median earning. Usually, this class is also depict by the government programs and local municipalities.
The workforce housing
Simply put, the workforce housing comes between 61% and a little upper figure. It usually involves the middle-earners who don’t rely on the government-subsidized rents. You will come across specific marketplaces in New York and other places, where they count about 120% or 180% of the median income. But in the majority of the situation, almost 80% to 120% will get consider as moderate earning space link with workforce housing.
The need for affordable workforce housing
The pandemic outbreak has made it challenging for the workforce population to reside in their house. It’s because they have lost their jobs or have to compromise on their wage. As a result, they can’t pay the house rent in the urban areas and get evicted. Some people have shifted to rural and suburban areas, while others have become entirely homeless. Hence, it’s necessary to come up with housing projects that can cater to this population and enable them to live better. It is a condition that people should look into.
Last but not least, Maxwell Drever says, a nation that isn’t able to provide secure housing to its residents can’t call itself a developed nation. The housing crisis in the United States is a current issue that got aggravated by the pandemic. Therefore, when the government and other interested authorities work towards providing affordable workforce housing, it enables the workforce population to live better, work in their desired places and also maintain a correct work-life balance. That aside, it also leads to overall economic development.