Workforce housing has multiple variations popping up now and then. These are shelters built for serving families with an area median income of 60 to 120%. However, the nature and extent of the AMI vary from one family to the other. Every state has its own rules and regulations to determine who constitutes the workforce population explains Maxwell Drever. However, if you look at the globe, you will see that the workforce population typically includes service providers.
These are the medium-income families whose income unfortunately are insufficient and are dropping lower in the marketplace. They do not have enough resources to opt for luxury housing. Hence, they have only one option: an affordable housing unit. It has created a gap between the two sectors. On one side, you have the middle-income groups, and on the other hand, you have the aristocratic section of society. Both these form an indispensable part of the community. What is required is a collaboration between these sections for a positive outcome.
Affordable housing versus workforce housing
People use these terms interchangeably, and that confuses all. Although it is not surprising, the times are not the same. Each has a different context, explains Maxwell Drever.
If you are interested in investing in affordable housing, you must understand the difference.
If you go by industry-standard definitions, affordable housing serves families whose income is below 60% of median income. On the other hand, workforce housing is a shelter for individuals whose area median income is between 60 to 120%. Hence, they do not require government subsidies for paying the rent. All they need is an affordable housing unit near their job location.
What can the government do?
Housing authorities function under the government. However, these authorities come up with several housing programs, which require approval from the government. Remember that the ultimate supervisor is the governing authority. Hence, the appropriate connection between both these agencies is necessary.
If you go by published figures, Maxwell Drever says, you will see that several local housing authorities have come up with new residential unit construction. The central motivating factor behind these constructions is the governmental policies. Thus, governments must initiate programs to support real estate investors and also landlords interested in investing in this sector.
Tax credits play an essential role in bolstering the demand of the economy. Many governments have come up with housing tax credits in the market. They supply easy cash, leasing land, and other necessary resources for these constructions. Remember that it diversifies housing prices and helps reduce the gap between demand and supply.
It is essential to discern the opportunity of the housing sector. Whether it is the hotel owners or other agents of the marketplace, they must come forward with worthwhile projects. These will serve as a solution to the affordable workforce housing shortage crisis. It has the potential of changing the future. People should unite to make it a reality.