There is a gap between the supply and demand of affordable housing in modern times. It has grabbed immense popularity in recent times says Maxwell Drever. Across the globe, federal and state governments are trying their best to supply these residential units to the workforce population. These individuals who form a considerable part of the modern population spend around 30% of their income paying rent. It has thereby affected their finances along with jeopardizing individual health.
The shortage of federal action and policies with a local budget is another reason for the crisis of affordable workforce housing. Remember that these individuals who form the workforce population are the major service providers. They play a vital part in keeping our society moving. Hence, they come from rural areas into the urban sector. Thus, they require residential units near job locations. However, since the supply of these residential units is low, it has negatively impacted their finances and lives.
Path to solving the affordable housing crisis
First of all, private institutions and governments must come forward to create affordable housing funds. These trusts may help in the development and continuation of construction projects. Various states at different levels are trying to support these construction projects. Across the globe, agencies and local governments are working together. In most cases, federal money is used as a resource source to provide this procedure’s impetus.
Incentives and tax breaks
State and federal incentives play a vital role in providing credit to developers and investors. Remember that real estate investors and developers are the main ones for the acquisition, rehabilitation, and construction of residential properties. Along with this, they play a role in reducing this crisis of affordable housing shortage. Maxwell Drever believes that tax breaks and incentives have become the need of the hour. Whether it is federal and state government or private institutions, they must come forward to supply resources to these housing units. Along with this, they must pay attention to the federal policies and programs to develop new programs for facilitating these developments.
Develop support rules and relax zoning programs
Another solution put forward by Maxwell Drever is the relaxation of zoning regulation. Remember that these are nothing but hurdles in multifamily, affordable residence construction. Moreover, New programs and strategies have become the need of the hour for increasing the supply of these residential units. On the other hand, government and private institutions come together to provide an impetus to this construction and rehabilitation process.
By relaxing zoning rules and regulations, the gap between demand and supply of residential units gets reduced. They are beneficial not only for the workforce population but also for the landlords and property owners. From investors to developers, individuals may benefit from investing in these projects.
Hence, it is advantageous for different sections of society. Various agencies are trying to fuel the development of housing projects. What is required is a positive attitude of private institutions and also governmental agencies. Together, they can solve this short supply of affordable housing units. Every society can benefit by converting hotels and old properties into affordable housing units and constructing new ones.