Over the past decade or so, the concept of workforce housing (also known as public housing and social housing) has gained a lot of attention. This is due to the lower rates of rent that these housing units have as compared to similar properties on market rates.
However, there is a catch: not everyone can rent these houses. In order to qualify for affordable workforce housing, the income of a household should be in the median range of the area’s income.
According to Maxwell Drever, it is important to educate yourself about the concept of workforce housing. Even if you aren’t planning on renting a home, being aware can help you make investment decisions. Workforce housing has a lot of potential in the near future. And irrespective of which side of the fence you are on, you should know about the following pros and cons of workforce housing.
Pros of Workforce Housing
- For the average middle-class citizen, the rent of a basic house can be up to 50% of their income. However, a workforce housing unit only costs around 30% of their income while also covering some basic necessities. Therefore, employees who are eligible for workforce housing can find it much easier to afford rent on a regular basis.
- It also creates more job opportunities, as people can live close to their workplace. This reduces the need to have a means of commute, which can help save a significant amount of money by the end of the month.
- A sustained workforce housing model can help reduce and ultimately eradicate poverty in the country. Families that spend a major fraction of their income on rent tend to not have any savings for the future. This can lead to a vicious cycle, as their kids may get stuck in the same loop too. Workforce housing can help break this cycle by allowing families to save some money and spend it on other important things.
Cons of Workforce
Just like everything, workforce housing isn’t a magical cure for poverty and economic crisis. According to Maxwell Drever, it is important to be aware of the cons of everything. This way, we can come up with potential solutions that help tackle the problem.
- Currently, there is a huge discrepancy between the demand and supply of workforce housing units. There are a lot more people who are eligible for workforce housing programs than there are units to rent out. As a result, this can become a huge burden on taxpayers. If sustained for long enough, the discrepancy may start to diminish and divide the burden of the expenses on all citizens. However, that would take a long time.
- The risk of exploiting the program is very high. While there are a lot of people who are genuinely in need of this program, there will be some out there who will try to misuse it. The lower cost of rent can lead to people lying about their income to get a unit. For this purpose, it is necessary to do thorough background research allotting a unit.
If you want to learn more about workforce housing, head over to our website. We have covered almost everything you may want to know, but if you have any other questions, feel free to get in touch with Maxwell Drever.