Creating and managing affordable workforce housing is a highly challenging and rewarding effort. In several cities across the nation, it is becoming increasingly challenging for middle-income people. To purchase or rent affordable housing in localities near their workplaces. Maxwell Drever feels that it is because of the wages that fail to keep up with the ever-increasing living expenses. That is chiefly because of the limited supply of affordable housing for these workers. As a result, numerous workers are compelled to move away from their workplace to the outer fringes of an area. Resulting in longer or time-consuming commute times because of busier traffic.
According to ULI or Urban Land Institute, affordable workforce housing may be defined as housing. That seems affordable to those households that earn between 60% and 120% of AMI or Area Median Income. Workforce housing is targeting middle-income workers, including professions like firefighters, police officers, healthcare workers, retail clerks, teachers, and the like. Here are the top reasons to invest in affordable workforce housing.
Enjoy Reliable ROI
When developers invest in affordable housing, they hardly face any difficulty, while filling their properties when a building is complete. This trend seemed to be steady and constant for several years. And there is no reason why it should not continue to do so in the near future. It implies that real estate investors take it for granted. That relatively lower risk is associated with affordable workforce housing projects, and they may enjoy reliable ROI.
Consistent Cash Flow
When families qualify and are eligible for affordable workforce housing. They need to pay subsidized rent set by the state, local, and federal governments. It culminates in steady and consistent cash flow for real estate investors keen on constructing affordable housing. For the relatively poorer and unfortunate class of people in our society. Even if a family is not capable of affording their rent. Vacant properties will soon get filled up due to a shortage in supply. Thus, you may keep all the associated risks at bay. Moreover, there is a steady income stream.
Gain Substantial Tax Incentives
The US government provides a broad spectrum of tax credits and deductions. For real estate investors building affordable homes for particularly low-income bracket people. When families are eligible for affordable housing, they enjoy these tax benefits and pass them on to the investors.
Building Healthy Communities
Apart from the benefits discussed above, the most critical reason to invest in safety. Affordable workforce housing projects is boosting the health of the community as a whole. Maxwell Drever believes that by providing affordable housing options to poorer individuals and families, investors are instrumental in changing their lives and enriching and empowering communities in unanticipated ways.
Affordable housing projects mean more than just attractive returns. When the economy is taking a sustained and unrelenting downward turn. Real estate investors will be looking for a buffer to withstand stock market losses. This drastic undersupply of affordable workforce housing, in comparison, to its demand will naturally and largely restrict portfolio volatility. But at the same time, continue to provide a passive income source for investors.