With housing prices skyrocketing due to high demand and low supply, finding affordable housing is not an easy task in today’s world. Maxwell Drever says the problem multiplies for teachers, police officers, and other professionals who don’t have the budget to purchase luxury apartments instead of looking for a residence near their workplace.
Many real estate investors have found solutions to this problem. For instance, Maxwell Drever creates affordable workforce housing complexes out of closed hotels with the winning strategy he adapted over 50 years ago!
Curious to know what that strategy is? Read on to find out more.
How severe is the housing crisis around the United States?
According to a report in the Wall Street Journal, the US built, on average, 276,000 fewer homes between 2001-2020 as compared to 1968-2000. This shortage has led to a record increase in prices, thus limiting access to houses for low-income earners. What is the solution? Convert “broken” hotels into affordable apartments for the workforce
How can broken hotels be converted into affordable workforce housing?
Hotel rooms that are converted into individual apartments infuse multiple levels of luxury and comfort. This strategy minimizes costs for the resident and maximizes profit for the developer.
To determine the viability of a broken hotel to affordable workforce housing redevelopment, the number of existing rooms, the location, the existing amenities, the condition of the infrastructure of the building, among other things, must be considered. If there are building violations on record, the likelihood of a local community board approving a redevelopment will be below. Another possible concern to the community could be an increase in traffic and noise.
On the positive side, current neighborhood residents living near the broken hotel can benefit from new amenities and commercial spaces. And local entrepreneurs can take advantage of an increased population by opening new businesses. The reality of investment coming from beyond the community becomes reality as well. Through these activities, the path to a healthy and thriving community is clear and inevitable. It’s a win-win for everyone!
Benefits of converting a hotel into affordable housing
Apart from giving individuals a place to call their own, there are many other benefits that the community reap from this transition.
A single hotel with 100 rooms can turn into as many as 120 affordable apartments. Thus reducing the strain on local infrastructure. This increases the community tax base, thus creating investment opportunities. Like rebuilding roads, repairing utilities, and providing better public transport, which benefits all!
New residents living in local affordable workforce housing have easier access to their jobs are in the position. To increase their productivity while also, through their presence, creating increased business activity. By eating in local restaurants and by shopping in local stores. Converting hotels into affordable workforce housing also can increase tax revenues. As family and friends visit the new residents. By eating in those same local restaurants and shopping in those same local stores.