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Maxwell Drever explains the meaning of the affordable housing crisis

People all across the globe are facing the problem of affordable housing. It is affecting millions of individuals who belong to the middle-income group. Now, what is a middle-income group? Those who work for around 35 to 40 hours a week but earn minimum wages fall within this category. They face difficulty in affording a typical two to the three-bedroom apartment for themselves. It is because of the low wages, increasing economic strain, and high rent of housing estates. Housing estate research reports reveal that ever since 2016, the problem has aggravated. Furthermore, the worldwide pandemic has aggravated the issue. It is here that the high-income earners are coming up with a positive approach to solving this problem. However, the challenge is not only typical for the low-income group. It is affecting every section of society differently. Governmental policies favor homeowners over the renter Affordable housing policies vary from one government to the other. Irrespective of these variations, they have one thing in common. The policies favor the homeowners and hotel owners over the renters. Since it is a tax deduction policy, Maxwell Drever asserts that the federal welfare program gets directed towards the higher strata of society. However, it is a challenging task to provide affordable housing to middle-income groups. The process of conversion of already existing structures into an affordable housing estate is… Read More »Maxwell Drever explains the meaning of the affordable housing crisis

The significance of designing neighborhoods and not buildings for affordable housing, as propounded by Maxwell Drever

Affordable housing has become a recent trend. The subject is gaining ground in contemporary times says Maxwell Drever. For providing improved civic communities to citizens belonging to different start of society, various agencies are playing a proactive role. Apart from this, the federal governments have come up with policy options and tax cuts to boost. Multiple experts and thinkers are trying to educate people on this particular issue. Remember that it is not a one or two-day game. It is a community undertaking that takes time. Although the concept is a new one, its implication got felt widely. The workforce population or the individuals belonging to different professions like teachers, firefighters, technicians, and laborers find it hard to get an affordable two to a three-bedroom apartment. Hence, it is not a surprise that they are on the verge of homelessness. For solving this issue, national arousal has taken place in different parts of the globe. Various local and federal government agencies are coming up with policy options to give the process a boost. However, people must understand the significance of the process of designing the neighborhood. How important is town crafting for the process explains Maxwell Drever? Well, when thinking in terms of affordable residences, you cannot leave out town crafting. The agencies are putting shelter on the heads of the needy and are also… Read More »The significance of designing neighborhoods and not buildings for affordable housing, as propounded by Maxwell Drever

Who needs affordable workforce housing and why?

Affordable workforce housing is affordable to the majority of the intended occupants. Affordable affordable housing is affordable for most working people in America, but not affordable enough for those who are just above the cut-off line. The demand for affordable workforce housing rises with increases in minimum wage and income inequality, as measured by GINI coefficients. Inequality is of great importance in affordable workforce housing. Income inequality has been of great importance in the affordable workforce housing conversation for many years, and is of more importance than ever as we move forward through time on this earth. While there are a few exceptions, affordable workforce housing generally only helps those who need affordable workforce housing. I feel that affordable workforce housing is something that every one of us must learn all they can about. Affordable workforce housing is affordable to the majority of the intended occupants. Affordable housing is affordable for most working people in America, but not affordable enough for those who are just above the cut-off line. The demand for affordable workforce housing rises with increases in minimum wage and income inequality, as measured by GINI coefficients. Income inequality has been of great importance in the affordable workforce housing conversation for many years, and is of more importance than ever as we move forward through time on this earth. While there are a… Read More »Who needs affordable workforce housing and why?

Who wins and who loses with affordable workforce housing?

Housing industry experts, real estate investors and at least one research group have been asking the same question – who wins and who loses with affordable workforce housing? – for decades. The answers vary depending on their points of view. The consensus however, seems to agree that a growing number of working class families are moving into luxury condos in big cities, while poverty-level families are being pushed out of affordable housing projects. The lack of affordable workforce housing is still a major concern for hundreds of thousands of low-income households in the US, especially when home prices are skyrocketing across the country. RENTS FOR LOW INCOME HOUSING A shortage of affordable workforce housing is one of the biggest issues affecting more than half a million low-income families in the US. In California, there are currently 58 counties with a shortfall in homes which means monthly rent for affordable workforce housing is often higher than what struggling families can afford. In Los Angeles County, about 33% of renters earned less than $30,000 annually in 2016 – the national poverty line for a family of three is $20,420. On average, LA County renters paid $1,569 per month on rent in 2018. While this figure seems reasonable compared to New York City’s median monthly rent of $4,089 or San Francisco’s median monthly rent of $3,414 – it… Read More »Who wins and who loses with affordable workforce housing?

What are the challenges of investing in affordable workforce housing?

The challenges of investing in affordable workforce housing are not only the financial cost, but also the lack of an up-to-date inventory of public land, extreme regional variations in housing costs, local zoning regulations that often restrict production to just one or two types of buildings, and high construction costs. As a result, the cost of producing affordable housing has long been dominated by construction costs. Although lower construction costs are important in reducing rents, other factors have even greater impact on rent levels. These include the household’s size and composition (the number of bedrooms), educational level (especially for adults), and workforce status. The last factor is particularly significant because it addresses whether the head of household works at least 40 hours per week or is seeking work; if seeking work, he or she must be available to take new employment opportunities that may arise during the next few weeks. When available to take such opportunities (and they exist), these households will most likely see their incomes increase over time and therefore become better candidates for renting homes that offer more space and comfort. Thus, while housing policy should recognize the role of construction costs in affordable housing production, it must also recognize that the greatest impact on rent levels comes from workforce participation. As a result, many states have introduced variants of what is… Read More »What are the challenges of investing in affordable workforce housing?