Real estate developers and investors are more typical than landlords. They are savvy business individuals says Maxwell Drever. Property investors work like portfolio managers focusing on maximizing their profit and creating value in their work. Investment in affordable housing is not only an investment strategy but also a business at the same time.
- Various property investors have affordable housing in their portfolios because of the government tax credit.
- Property investors are interested in this drive because it ensures high profit and commercial sales in the area.
- Investors must calculate the cost of renovation, purchase, and maintenance of affordable housing to determine its comprehensiveness.
- Ideally, investors can access the best properties in viable areas at a reasonable rate that ensures adequate profitability.
Different sides of the issue of affordable housing
Affordable housing aims to furnish housing units to individuals with limited income. According to Maxwell Drever, property owners grab tax credits when they use their property. Renters also get assistance from the federal government when paying the rent every month.
Which sections of society are affected by the workforce-housing crisis?
People believe that only the workforce population is affected by the housing shortage. However, the story is far from this. It’s because senior individuals, students, and even military persons are struggling with this issue of eviction.
- People above the age of 65 and with disabilities form a significant part of the western population. Studies reveal that people belonging to this group require housing close to the public accommodation. They also need wheelchair-accessible handrails, bathrooms, modified cabinets, etc.
- Students who are maturing adults form a significant part of the western population. They are also looking for affordable housing units near their educational area. International students also require housing readily available year-round says Maxwell Drever.
- Military service personnel have housing options off and on base. On base requires property management, construction, and ground maintenance. On the other hand, off base requires location assistance, purchase financing, and custom construction.
- The employers, who are the chiefs of the industries, get worst affect by the short supply of the workforce population. They do not get laborers in and around their industry location. They have to pay higher wages to their workers to get them out of their rural areas in the urban centers.
Hence, one thing is clear: the affordable workforce-housing crisis is a problem in every section. Homelessness is not only a one-day activity as it has transformed the real estate industry like never before. Rehabilitation programs need proper assessment and analysis.
Hence, Maxwell Drever suggests that the proactive role of different institutions and governmental agencies has become the need of the hour. Real estate investors must come forward to invest in these projects because they can provide high profits.
Investment in affordable workforce housing will never go in vain. It’s because the demand for these units is expanding. Remember that the market price for these rental units is ever mounting. Hence, it is profitable for the government, real estate investors, and developers.