The worldwide pandemic has halted the economy in multiple ways. Developers and investors are turning towards affordable residential units for various reasons says Maxwell Drever. It is not only a profitable avenue but is a pressing problem that nations are facing presently. Of all the sectors, travel and tourism are worst affected. Along with this, the hospitality sector is also facing the turmoil resulting from the covid-19 pandemic. As a result, various hotels have remained non-operational ever since March 2020. Several hotels are on the verge of sale and thus evacuated before the New Year. However, things changed when hotel owners altered their viewpoint.
What does it take to transform a hotel?
As mentioned earlier, hotel owners have redefined their approach to their businesses. The reduction in revenues was a pressing problem for the hotel owners and their staff members. Most of them also lost their jobs because of non-operational hotel rooms. Before the problem lasted longer, Maxwell Drever stated hotel owners tried to transform their hotel spaces into affordable residential units. The cheap residential team is a pressing problem in the nation world across. The workforce population does not get a shelter in the job location.
The growing demand for affordable workforce housing is grabbing every attention. More and more national and state governments are interested in this sector because of its increasing prospects. Along with this, various other points require detailed anticipation to ensure the importance of permanent affordable housing.
The financial burden and role of developers
As mentioned earlier, the workforce population are individuals with an area median income of 60 to 120%. Hence, they cannot spend more than 30% of their earnings on paying rent. In addition to this, they require residents in their neighborhood to reach their job location on time. The regular commute time increases their expenses and introduces a lot more hardship in their lives.
In this scenario, the role of investors and developers is significant. The low-income families require support from other sections of society. Remember that low-income households do not have sufficient resources to meet their requirements. To solve this issue of homelessness, Maxwell Drever says investors and real estate developers are developing a new approach that is the transformation of hotel rooms into residential units.
Evaluate the cost of construction
Undertaking a new construction is a costly process. Hence, the transformation of existing hotel rooms is the best option for hotel owners. For this, professional monitoring and planning are necessary. Hotel owners must work with area developers and investors. They must also ensure that a proper blueprint of the hotel room gets worked out. Besides, hotel owners must be up to date with governmental housing programs and policies.
There are various policies to ensure the supply of affordable residential units. Hence, more and more investors are taking an interest in this avenue. The need of the hour is a mutual effort of federal and private institutions so that the problem of homelessness can get curtail helping the workforce to flourish.