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Maxwell Drever

Why affordable workforce housing has emerged as a concern for both employers and employees, as per Maxwell Drever reports

Housing consumes a vast share of the employee income compared to 20 years ago explains Maxwell Drever. The increasing strict state and local regulations and the declining supply of housing units are responsible for this. More so, eligible households are not even receiving Federal Housing grants, which leave them in a mess. Hence, they cannot cover transportation, healthcare, food, and other essential costs.  Housing affordability has thereby emerged as a significant issue drawing substantial attention. If you look at recent reports, you will see how drastically the problem has enveloped every section of society. To address the issue, every individual must come forward and delve deep into the cause of housing costs and housing shortage.  Explore the issue?  Housing affordability gets measured in terms of the income spent on a mortgage payment and monthly rent. Along with this, there are other points to explore.  • Based on the housing department’s definition, any individual spending more than 30% of income on housing rent is considered cost-burdened.  • Households spending more than 50% of their income on paying rent are considered severely burdened.  These households who devote a vast share of their income to paying housing rent do not have enough aid to cover their cost of healthcare, food, and transportation. At the same time, any family or individual with a low income may counter challenges. Yet, Maxwell… Read More »Why affordable workforce housing has emerged as a concern for both employers and employees, as per Maxwell Drever reports

Maxwell Drever

Unfolding the concept of affordable housing to avoid housing crisis the way Maxwell Drever explains

When thinking about affordable housing, most individuals think about the role of government at different stages in curbing this issue of homelessness. However, the responsibility does not lie on the government singlehandedly. Both government and non-governmental institutions have to come forward to deter this affordability issue says Maxwell Drever.  State and local governments are trying their best to prevent the problem from taking a global stance. However, the reality is far from this. The results are predictable. Housing prices, inflation rate, and restrictions on new constructions are rising. Amidst all these, a modest home is far from reality. As a result, governments are suffering to provide shelter to homeless individuals.  The dark side of restriction Various economists have studied how housing and construction restrictions obstruct the real estate industry. Several methods can separate the effect of scarce land from building protocols. One cruel thing that came to the forefront is the reality that one person has more land than the other, leading to the crisis, believes Maxwell Drever. Land scarcity is a crucial factor to bring under consideration.  The need of the hour is a proactive role of the government to address this issue and identify the underlying cause. As already mentioned, the worldwide pandemic is responsible for the hardship of the workforce population. Hence, a proper approach between the government and non-governmental organizations is necessary… Read More »Unfolding the concept of affordable housing to avoid housing crisis the way Maxwell Drever explains

Maxwell Drever

The link between judicious use of resources and affordable housing to overcome housing crisis, a Maxwell Drever summary

Providing affordable housing has become a challenge in developed and developing nations explains Maxwell Drever. Since the demand for workforce housing exceeds the supply, it affects this sector’s productivity, growth, and mobility. Fortunately, there are directions for narrowing the affordable housing gap and using a market-based approach at different levels.  Across the globe, 3 30,000,000 moderate and low-income households live in substandard residences.  By 2025, the figure will exceed 4 40,000,000.  1/3 of the world population will be compelled to live in suburban areas.  Urban streets, cities, and municipal areas will be overcrowded with a workforce population.  Substantial buildings and housing provisions Replacing the current substantial building and housing would require an investment of more than 16 trillion in cash. It is a daunting figure that will only increase. However, Maxwell Drever expresses that there are a few ways of reducing the housing cost and expanding the delivery by 50%.  Efficient land use is the first step. Acquisition of land in the correct location and also at a reasonable rate can potentially cut the housing cost. Only acquisition of the field is not the end of the game.  Location plays a vital role in both developed and developing countries. Easy access to water, sanitation, electricity, and also transport is inevitable. Investment in the area would expand and improve land use.  Cities must loosen their restriction on land… Read More »The link between judicious use of resources and affordable housing to overcome housing crisis, a Maxwell Drever summary

Who Is Maxwell Drever

For five decades, Maxwell Drever has served as the Chairman of Drever Capital Management, a firm that invests in workforce housing and other real estate projects. He has been and is one of the greatest contrarian impact real estate investors in the world. Up till now, Maxwell has repositioned more than 42,000 multi-family apartments. His motto is “doing well by doing good,” which seems apt based on his work. His socially responsible investments help generate risk-adjusted returns that convince investors to dip a toe into his world. Maxwell Drever has redeveloped underperforming, multi-family properties for the workforce in an environmentally conscious manner. In 1970, he began investing in Seattle and transformed 17 complexes into beautiful apartments for families having workforce incomes. Previously, Maxwell Drever worked at Drever Partners and was considered one of the largest buyers in multi-family housing projects with 180,000 units. In 1997, these assets were combined into Walden Residential Properties. He then created Concierge Asset Management that combined Crossbeam Capital. The venture then focused on acquiring distressed multi-family projects. Today, this company owns as well as manages around 8,000 residential units. Maxwell has a bachelor’s degree in Finance, which he has done from the University of Illinois. He has a philanthropic passion, which is about assisting the education and health of underserved youth, along with spreading awareness regarding eldercare health issues. He… Read More »Who Is Maxwell Drever

How Affordable Workforce Housing Is Helping Exhausted Employees

Maxwell Drever, the Founder, and Chairman of DCM say Workforce housing is taking many communities by storm. It is quickly becoming one of the most popular affordable housing options for workers. In case you don’t know what workforce housing is, here’s its literal definition: The National Association of Realtors (NAR) defines workforce housing as: “Housing that is affordable to households earning between 60% and 120% of the area median income.” So, how much does one need to earn to be eligible for workforce housing? Take a look at the following chart and find your range: Workforce Housing Ranges Household Members 0 – 50% 50% – 80% MFI (100%) 80% – 120% 120% – 200% 1 $40,460 $64,736 $80,920 $97,104 $161,840 2 $46,240 $73,984 $92,480 $110,976 $184,960 3 $52,020 $83,232 $104,040 $124,848 $208,080 4 $57,800 $92,480 $115,600 $138,720 $231,200 5 $62,424 $99,878 $124,848 $149,818 $249,696 6 $67,048 $107,277 $134,096 $160,915 $268,192 7 $71,672 $114,675 $143,344 $172,013 $286,688 8 $76,296 $184,960 $152,592 $277,440 $462,400 Net Asset Limits $115,600 $184,960   $277,440 $462,400 Maxwell Drever As you can see, the household income is based on the number of family members. The Median Family Income (MFI) range shows that a family consisting of just one member earns $80,920, making them 100% eligible for workforce housing. Benefits of Workforce Housing for Exhausted Employees As the name says, workforce housing is… Read More »How Affordable Workforce Housing Is Helping Exhausted Employees

Maxwell Drever Talks About the Power of Affordable Workforce Housing as an Option for Investment

Maxwell Drever explains as the property costs carry on to increase and the real-estate cycle goes up. Several commercial real estate professionals all over the country will find it highly challenging to recognize the value-add acquisition scopes. And an exception to this rule happens to be affordable workforce housing. The absence of accessible houses in several cities in the United States is expected. Hence, there’s no doubt that we need to do a much better job of expanding and enhancing the low-cost housing stock to middle-income earners. Maxwell Drever says that the present supply-demand dynamics have made the labor force housing properties in the markets that have shown growth. Understanding the workforce housing Given its definition, affordable workforce housing indicates the needs of the individuals and families that generally earn anything between 60% and 120% of the total area median income. Also, as per the latest research, the overall number of households in the United States went up by about 7.6 million between the years 2006 and 2016. Also, a number of the homeowners stayed flat, the count of the renters went up from 31.2% to 36.6%, presenting the increased rate of renter-ship that the country has witnessed in the last 50 years. In addition, the workforce housing usually appeals to the residents who earn an income to qualify for the subsidized low-cost housing accommodations… Read More »Maxwell Drever Talks About the Power of Affordable Workforce Housing as an Option for Investment

Maxwell Drever’s Views on the Affordable Workforce Housing Crisis and Its Impact on Everyone

Maxwell Drever says housing instability refers to households that feel strained by searching for housing frequently and a lack of affordable options. A case in point is workforce millennials in the US. These hardworking members of the society, comprising teachers, firefighters, carpenters, salespersons, healthcare workers, and others, earn decent median income but lack of affordable housing and subsidies make them vulnerable to daily challenges. They suffer in multiple areas. Common woes include incurring debt when paying rent, overcrowding, frequent displacement, and getting forced to stay with relatives. These experiences may cause emotional stress, which makes it much harder to access healthcare. Accessing substandard living conditions or housing and difficulties like displacement increases their emotional distress. Then, specific populations such as children tend to suffer the most as they have to face housing instability, which impacts their education, health, mental peace, and more. They don’t get the opportunity to mingle with the communities they moved in and remain disconnected. Maxwell Drever says these situations, at first glance, can feel like a problem of the specific society of the country – the middle-income people. But on delving deep into it, one would realize why their housing instability issues deserve a proper solution. Unhealthy population, unhealthy economy A person’s home represents a source of stability for a family. With housing stability, medical issues become easy to treat and… Read More »Maxwell Drever’s Views on the Affordable Workforce Housing Crisis and Its Impact on Everyone

Maxwell Drever Talks About the Challenges in Affordable Workforce Housing Investments

The low-cost workforce industry is a challenging segment in real estate, says Maxwell Drever. One crucial factor that adds to the trouble is the housing market. Even though the conventional renters usually focus on the credit score, financial situations, and other critical factors, most of the low-cost housing renters can maintain a similar standard. Several tenants come with poor credit and earlier evictions on the record when it comes to the low-earning community. Maxwell Drever says that close to 28% of households aren’t current on the mortgage or rent and foreclosure and eviction in the past two months. Also, when it comes to public housing, a minimal debt can evict the poor tenants. Usually, a small unwarranted debt can result in a snowball impact for the low-earning tenants that already have the challenges in staying current with the bills. The changes in the current price versus the cap rate Each market comes with cycles. And this also applies to the real estate market. Also, the Class C and the D properties are getting sold at a 5 to 6 cap rate. A study in May 2021 made many people think about whether the United States was heading to an entirely new housing bubble. This article highlighted that the median home costs have increased from one year to the other, which insinuated the bubble base. The… Read More »Maxwell Drever Talks About the Challenges in Affordable Workforce Housing Investments

Maxwell Drever Talks About the Best Practices to Examine a Hotel for Converting into an Affordable Workforce Housing Unit

The past two years have been challenging for everyone across the globe. The pandemic outbreak has hit every industry sector, including the hospitality sector explains Maxwell Drever. But today, there is a silver lining for the hotel sector. Even though there are multiple alterations in the competitive landscape in today’s hospitality industry, the majority of the owners have attempted to rethink their business. They thought about their business in a new way. It is because most hotel owners are trying to assess transforming vacant hotels into low-cost housing units. According to Maxwell Drever, the few points will highlight the present scenario: Converting the hotels to low-cost housing units through the federal programs Converting hotels to rental apartments to capitalize on the unprecedented demand When it comes to hotel owners, the current strategies of the federal and state governments always favor hotel conversion. In addition to this, the increasing demand for low-cost housing units proves to be a significant driving force. Converting hotels to low-cost housing –The best practices No one is unaware of the current housing crisis that is present in the United States. At the same time, people are also aware of the zero to low occupancy rate in the hotels, which has made many hotels owner think about whether they should put the property to another use. And it’s the time for connecting… Read More »Maxwell Drever Talks About the Best Practices to Examine a Hotel for Converting into an Affordable Workforce Housing Unit

More Hotels are Getting Converted to Affordable Workforce Housing – Maxwell Drever Shares His Views

The sudden pandemic outbreak has been ruthless on the world! The losses haven’t been only in terms of deaths and an increasing number of contaminations, but it also caused the global economy to face a tremendous setback says Maxwell Drever. And one of the sectors that got hit very hard is the hotel industry. It’s primarily because of low hotel occupancies that had resulted in reduced sales. The outcome was less or no profit, because of which most hotel owners thought of shutting down their operations for a while. According to the latest reports and studies, it will take almost three years for the hotel industry to revive back to what it was. Meanwhile, hotel owners often toy with the question about putting their properties to good use. The concept of affordable workforce housing seemed not only viable but also relevant. Leveraging the scope for increasing asset value Maxwell Drever says that as the world progresses for the next normal, there is a huge demand for low-cost housing. The reason being the property value is rising at a fast pace. Hence, the medium-income group is always searching for low-cost housing units, whether in the long or short term. Also, the medium-earning groups with their wage falling between 60% and 120% of the AMI aren’t ample for rent disbursement. It’s essential to realize that the workforce… Read More »More Hotels are Getting Converted to Affordable Workforce Housing – Maxwell Drever Shares His Views