There is a growing concern among real estate investors and higher officials to reduce the gap between demand and supply of workforce housing says Maxwell Drever. The concept of workforce housing has gained immense popularity in the last few years. It has become the pivot of housing programs and policies. Since the lockdown began in March 2020, the demand for affordable residential units has seen a surge.
Since it is related to affordability and residential cost, resulting in affordability problems and halting the smooth supply of housing units. Low and medium-income families are at the center of the workforce-housing problem. These individuals who serve the society in different capacities have an area median income of 60 to 120%. With the mounting cost of regular commodities, their stagnant wages have added to their adversity.
Individuals belonging to this category cannot spend half of their income to pay rent. A brief look at recent reports would reveal that around 25% of renters get compelled to spend a vital part of their income on paying housing rent. Hence, it affects other aspects of their lives, including health, education, and food. Since they do not have purchasing power, the only affordable residential unit can help them solve this issue.
How can hotel owners help?
Society has different sections of individuals. Of these, landlords and hotel owners have a responsibility. It’s because the worldwide COVID-19 pandemic has obstructed the hospitality sector badly. In this situation, Maxwell Drever reflects that repurposing vacant hotels into residential units promises better returns.
- If you look at the urban sector, hotels in the city centers have better chances of grabbing guests than others.
- It’s because they are close to the job location.
- Cities are busy areas filled with workforce populations and people from different walks of life.
- Hence, a decently located hotel converted into an affordable residential unit can grab better revenues by easing this traffic congestion and providing families or residential options.
Undertake the task
First and foremost, every estate owner must evaluate his or her property in detail. Hotel landlords must take steps to repair and replace whatever is necessary. In addition to this, they must pay attention to the rules and regulations of municipalities and local building codes. Additionally, hotel possessors and landlords must be up to date with state and federal policies in this sector.
Grab the benefit
Maxwell Drever believes residential unit projects are at the top of their priority list, whether in the housing market, real estate, or local officials. Remember that time and again, governments initiate policies to boost these projects. Hence, if you want to grab the benefit of these options, you have to access them in detail. By providing the moderate-income groups with a housing unit, you solve the issue of homelessness and contribute to the economy at large.
The need of the hour is an assertive role of private developers and government officials. By allocating resources and land, governments can take a significant step in bringing a difference in society.