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The soaring house prices between the 1990s and mid-2000s made many wealthy, especially those who could afford homeownership. This opportunity allowed them to do so many things with the money they received from their homes and created an entirely new culture around the country. By the mid-2000s, the property prices didn’t appreciate as they did earlier, but they became expensive in most markets. Over this time, incomes remained stagnant, and median-price housing became simply out of reach for most middle-class families. The supply gap further aggravated, combined with the opposition from the local community toward the development of multifamily housing that tends to be more cost-effective than single-family homes.
These factors made it difficult for low and medium-income groups to find affordable houses for their needs. As a result, they felt compelled to spend more than 30% of their annual earnings on housing expenses or search for shared accommodations or townhouses. Another alternative is, inhabiting a remote place that makes them too far from their workplace. While these are the realities, Maxwell Drever brings attention to possible and functional solutions for developers to solve this type of housing crisis.
Learn about your market and customers
Developers entering this niche real estate segment need to know their customers and market thoroughly. They should learn about their most essential needs and political, cultural, and social scenarios. At the same time, understanding the market rate in that specific area is crucial so they can determine attractive selling or rental prices for the workforce.
Build mutually beneficial partnerships
Affordable workforce housing developers may liaise with for-profit and non-profit organizations, government bodies, local development corporations, and others for their talent and experience to complete the projects at hand more efficiently. However, the partnership with each of them has to be like any other business dealing. But since it is a unique area, one has to be careful in nurturing their relationships with each group that can contribute differently toward the project. For example, for-profit businesses may have a better idea of financial resources, and non-profit developers can be savvy about tax credit programs relevant to these projects.
Select site location with care
Like any other household, even middle-income groups look for shelters with basic amenities and features. For example, choosing a safe area close to schools, parks, and public transport can be one. Maxwell Drever talks about shutdown hotels and motels because they usually enjoy strategic positions in the cities.
Nevertheless, it is essential to recognize that affordable workforce housing needs to target different markets and neighborhoods. Focusing only on city centers can defeat the significant purpose because even suburbs have witnessed rapid employment growth. So, revitalizing inner suburbs, surrounding city areas, and other densely populated locations can be helpful.
Ultimately, work class population needs homes from where schools, shops, daycare, and other necessary amenities are easily reachable. At the same time, these should allow them to travel back and from their office comfortably. These people don’t chase luxuries, but these basic things help them make their lives more sustainable and better.
