Everyone is aware of the housing shortage and crisis of home affordability. Experts estimate that a short supply of 300k units occurs annually. Innovation can impact the savings rates of residents, but one also needs to ponder over incentives for innovation that may include grants, subsidies, etc. Recognizing creative efforts through past developments and creating clear paths for undertaking projects where there are scalable lessons can be rewarding. However, when providing a solution, you cannot think of anyone or two choices. A concerted endeavor from different sections can address the lack of affordable workforce housing. Here are some insights.
Removal of Regulatory Barriers
To make a dent in the problem of housing affordability, local communities need to act now. One of the critical ways for policymakers to create more affordable workforce housing is by removing or reducing bureaucratic barriers that prevent property owners from adding new buildings or renovating existing ones. Private sector initiatives and projects are already underway to help improve the ability to increase housing affordability, adds Maxwell Drever. Due to this, building owners and tenants alike have a reason for hope.
Creative Financial Resources
Several companies have developed approaches for investing in the affordable workforce housing space, and they were able to do so via crowdfunding. Another solution that companies are looking into is an attempt to bring investors and developers closer, enabling them to build better cities when it comes down to legislation. Insurance is also an option that companies may want to invest in to ensure that their approach does not fail.
Renter’s Financial Landscape Mentoring
Maxwell Drever says renters (lower and middle incomes) suffer several financial roadblocks and financial instability. For example, they often have to make utility payments on top of monthly rent payments—people with bad credit or credit mistakes like missed payments in their past face even more issues. It puts them at risk of getting evicted due to inability to pay. At the same time, they can also lose an employment opportunity from potential employers who will take their financial well-being into account when checking up on their background information. However, if they get guidance on these aspects, they can be more careful with their money and do proper budgeting.
One way for cities to meet their housing demands is to utilize their existing stock of homes and land. It’s a great solution, especially in areas where people would rather live close to cities and away from more rural areas. However, they cannot think of this under the current situation due to a shortage of available housing. Hence, they have to move further away from the urban center. Old hotels, motels, complexes, and townships feature in this context. Developers and investors can pick foreclosed or abandoned properties like these to transform them into livable units for the workforce people. Since the basic framework and structure are available, the building cost will be less, and thereby, one can contain the rental charges.
The good thing is that many American cities are already applying new methods and techniques to solve the housing crisis problem faced more by middle-income groups.