The term affordable workforce housing always sounds like something positive. However, it comes with some disadvantages. Take a look at the disadvantages before you go for this program.
What Is Affordable Workforce Housing?
According to Maxwell Drever, affordable housing provides houses to middle-income earners at a price below the market rate. He believes it is everyone’s right to have access to housing to fulfill their basic needs of a secure shelter, and that is why investors should invest in it.
For example, if a household earns less than $60,000 a year and invests more than 30% of its gross income on housing, it should be eligible for affordable housing. Such families come under middle-class income earners.
The concept of affordable housing residents is more common in developing countries where most people cannot afford to buy a home at market value. People in the United States have also started looking into it due to the economic crisis after COVID-19.
Though the criteria of those who can avail of affordable housing differ from country to country, the basic concept remains the same; affordable housing should meet the housing needs of low- and middle-income households.
So people who are looking into this type of housing are usually worried about the disadvantages of living in an affordable house. Even though the cost of purchasing and renting is low, there are various challenges that people involved in this industry can face.
First of all, one major problem most people face with affordable workforce housing is its location. Most of such housing projects are situated in the outskirts of cities or remote areas. The large distance from the city’s center would probably result in these houses lacking some basic facilities. Also, since they are located away from the city, one can surmise they are also far from workplaces, leading to more expenditure on transportation and fuel for cars. Therefore, buyers with low incomes would prefer housing in the city’s center, even though they will have to compromise on the size to cut expenses.
Most of the land bought for these projects is in rural areas, where land is available at lower prices; however, these places still lack basic social infrastructure. Providing houses at a price lower than the market price would mean there is some compromise on the quality of construction materials used.
Moreover, children living in affordable houses may be discriminated against and bullied in school because they belong to another part of the community. This problem can be eliminated by teaching children inclusivity in schools.
Other than the disadvantages, the advantages outweigh the cons. Affordable workforce houses provide people with a secure environment for living. Many people are mentally stressed due to the price of houses during the pandemic.
Growing up in a safe home is essential for children as it leads to physical and mental well-being. Research shows that living in secure houses results in children performing well in schools.
Affordable housing is beneficial for the investors investing in these projects as well. This industry is in huge demand at the moment, especially after the pandemic, and people are now looking for affordable houses.
The Final Note
Everything has its advantages and disadvantages. Consider both when choosing the right house for you and your family.