The housing bubble has been bursting for a while. And that has reset the rental equilibrium ownership because the number of renters is more than the home buyers says Maxwell Drever. Today, the developers are focusing on creating new houses aiming at the higher end of the market. Also, the quantity of starter homes is getting declined fast. And the young individuals who are in need of a house are interested in renting a space instead of purchasing the same.
And with the changing demographics and cultural patterns, the demand for affordable workforce housing units is growing. Simply put, it comprises a higher number of utilitarian houses that cost less.And are best for individuals who are engaged in work in the nearby areas, despite being a costly property. Mostly, the subsidized housings belong to the workforce housing. And Maxwell Drever says that the amount of subsidy made available for the workforce housing units can differ greatly.
However, today there exists a crisis in affordable workforce housing. And it is essential to remedy the same. One of the best ways to resolve the same is to opt-in for hotel conversion.
The process of hotel conversion
Today, we are aware that the pandemic outbreak has made the hospitality industry suffer to a great extent. Even though several hotels are struggling even now, the pandemic made it challenging for them to exist. Today, such hotels are planning to re-open. However, it doesn’t promise any great improvement in the overall condition. Some reports suggest that the hotels will recover their best in another three years from their incurred losses. But then there are the distressed and the broken hotels where the business prospect is slim and that has a good scope for providing accommodation for a multi-family. And such hotels can get converted to affordable workforce housing units that can help resolve the housing issue and add to the income stream.
And since the hotels today comprise living rooms, kitchens, bathrooms, and other areas, construction costs go down significantly. Also, when there are lesser building needs, it leads to quicker project completion. But Maxwell Drever says that doesn’t indicate that every hotel can convert to an affordable housing unit. It is necessary to undergo a property evaluation for understanding whether the property has a chance to undergo a successful conversion. The process involves much work. Such conversion work can be complicating. And when the concerned developer or real estate agent doesn’t have the required experience. It’s always best to get in touch with an expert who can help you.
Today, the lack of proper affordable workforce housing is a worldwide crisis. And it’s impossible to resolve this issue within a few days. However, when most agencies target to work in this direction, there might be positive outcomes in this aspect. So, if there is a broken hotel or a distress property, it’s one of how the crisis of affordable workforce housing can get resolve.