Workforce housing has become a topic gaining great attention among officials and real estate communities says Maxwell Drever. Along with this, it has become the center of housing policies and programs. Since it is related to affordability and housing cost, the complex problem has resulted in affordability issues and housing supply issues. Remember that the moderate to medium income group lies at the center of the workforce housing issue. The workforce population forming the backbone of society has an area median income between 60 to 120%. Hence, their stagnant wages with the increasing housing unit cost have added to this problem. Individuals falling within this area median income with stagnant wages and increasing rent are affecting them.
If you go by recent news, you will see that around 25% of renters spend half of their income on paying rent. The percentage is high enough, which is affecting their other expenses negatively. Along with this, it is affecting their purchase power. In such a scenario, only affordable housing can help resolve their struggle.
What is the role of hotel owners?
Of all the sections of society, hotel owners and landlords have a lot to do. It’s because the worldwide pandemic has halted the hospitality sector gravely. In such a scenario, repurposing hotel rooms into residential units can promise better returns. Especially in the urban areas where the hotels remain near the employment centers, use the property to provide residential units to the workforce population. Remember that the city centers are always busy, says Maxwell Drever.
Hence, the workforce population is always on the lookout for a shelter near their job location because it reduces their commute time. It also eases traffic congestion and provides opportunities for these families to grow and live in the cities. Moreover, it attracts workers to the industrial hub.
The way forward
The first and the most significant step that every hotel owner must undertake is the proper evaluation of the property. Hotel proprietors have to undertake repair and replacement wherever necessary. Along with this, paying attention to the local building code and the rules and regulations of local municipalities is a necessity. In addition, landlords and hotel possessors have to keep abreast of federal and state policies for better projects.
Whether it is local officials, the housing market, or the real estate industry at large, Maxwell Drever believes these residential unit programs have got an impetus. It provides moderate-income families with a smooth flow of housing units. It also provides an incentive to private developers because they feel they will be getting soft revenues. Hence, it is beneficial for both groups.
Several local housing authorities have come forward with programs to purchase properties and improve these into affordable housing units. Numerous municipalities have come up with laws for allocating land and properties to the local developers to undertake these projects smoothly. Hence, it is a coordinated effort of different sections to resolve this issue.