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affordable workforce housing

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?

Maxwell Drever

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?