A shortage of affordable housing for the workforce is a significant crisis explains Maxwell Drever . To tackle the problem, it needs to be addressed by measuring the problem, then analyzing the underlying reasons, and at the last step discussing solutions with policymakers that would also benefit the investors along with the workforce.
Understanding and calculating the number of unaffordable housing units means recognizing the meaning of affordability.
The housing crisis can get triggered through income as a potential cause
Households with individuals belonging to the working class in unaffordable housing units are an alarming factor to encourage policymakers to examine income as a potential reason behind the affordable housing crisis. For most households, housing remains to be a significant expenditure. However, households with higher incomes spend fewer portions of their earnings on housing than those with low incomes.
Government Regulation is another primary reason behind the housing crisis
With investments from the private sector, the housing market creates affordable housing for the workforce and can potentially do so further. The creation of affordable housing units goes through a process of filtering. In this process, when the quality of housing units drops, their relative cost falls instead of following a method of constructing affordable newer units.
Even though the private sector has the potential to meet the standards of affordability by providing housing units, the effectiveness of the solution holds a drawback. It indirectly influences the production of affordable homes but with low quality from the private sector. In housing markets, the actions of one firm or household affected the standard of living of neighboring homes. For instance, if there is a decline in the quality of an apartment-housing unit. It is likely to affect the value of other housing projects nearby.
According to Maxwell Drever, regulation from the local government can help tackle the issue quickly. Authorities at the local level regulate estate in plenty of ways. Including limiting the different kinds of housing built on that particular land. The provincial government also dictates the attribution of the housing unit. On the one hand, these regulations can help give leverage to the quality; on the other hand, they can lower the accessibility of affordable homes for the workforce. Restricting the total of units created in the community.
Response through Policies
Since income is a potential cause of the affordability crisis, some policies address the challenge. Policymakers can respond to the rising gap through the facilitation of helping the working class access amenities like healthcare and food. Following that, access to these basic amenities got limited due to high expenditure on housing.
Cash like subsidies or cash provisions can be an effective way to help the working class have accessibility. The private sector can also help provide affordable housing to the workforce with subsidies, and cash provisions, announces Maxwell Drever. The private sector can also offer reasonable workforce accommodation cost-effectively through reliance on existing housing units. Efforts with funds can help make the dream a reality.