It’s a good time to survey the hotel industry and the housing scene in the United States. Today, there is an increasing trend of hotels getting converted into affordable apartments for the workforce segment says Maxwell Drever. Even though this phenomenon has been present before the pandemic, it has gained momentum now.
The hotels in New York City got affected in 2020. It made the homeless service groups, politicians, and developers arrive at a crucial decision. It identified this situation as a once-in-a-lifetime situation to change the fate of distressed and struggling hotels into affordable workforce units. That way it can be an abode for the homeless people and also the workforce population.
Maxwell Drever also points out that other places in the United States witnessed a similar situation. And in several places the government had decided to convert several hotels in to housing units. Today, several such units are proved to be a home for the lower income group and the ones who are homeless. This might be a philanthropic act for many, but it is an opportunity to put their hotels into good use for some hotel owners.
Is it advantageous?
This process of converting a hotel into a low-cost apartment is helpful for the people who are looking for an affordable home. It’s good for people who have an earning between 60% and 120% of AMI. The group comprises of teachers, firefighters, construction workers, nurses, police officers and many others who find it difficult to find a house close to their office or work place. Hence, there is the problem of rent overburden. Most affordable housing is creat for families that earn below 60% of AMI.
It’s challenging to rebuild the hotel rooms into low-cost accommodation units. But once it gets done, it will provide people with the chance to stay close to their house. It will reduce the problem of lengthy commute daily and also reduce traffic time.
Hotel conversions provide cheaper
The hotel industry has been badly impact by the pandemic. It is the reason why most developers are occupying the motels and hotels facing a financial issue. In order to offer a cheap choice for developing multi-family units at the beginning. It’s possible for the workforce housing projects to be cost-prohibitive. Other factors to consider include restrictive zoning, building codes, and the high land cost.
For instance, when it comes to creating a new multi-family development housing project in any metropolitan area, it can cost up to $200,000, which comes in comparison to $70,000 each unit of the conversion. Also, this minimize conversion expense results in the ability to offer reasonable rents, to families who stay here the moment the project gets accomplish.
Last but not least, Maxwell Drever says that it’s a good idea to convert hotels into low-cost workforce housing units. But once there are more places for the workforce population to live. It will help in the social and economic development of the country. It helps to address the housing crisis in a certain way, even though the solution is uncertain.