Paying rent for a comfortable, safe home is not just a challenge for low-income families. There has been a growing need in the United States for well-maintained and affordable workforce housing solutions that offer safety and protection for America’s middle-class workers. With home ownership becoming significantly more expensive across the country, it has also become more difficult for middle-income workers to buy or rent housing in the cities that they work. This is not only a result of wages failing to keep up with the rising costs of living but is also due to an overall limited amount of workforce housing options that are affordable for this group of people.
What is Workforce Housing?
Workforce housing is known as housing solutions that are affordable to workers and that are also close to their jobs. Typically, these properties provide shelter to low-to-median income workers who generally hold essential jobs in the community, such as teachers, healthcare workers, police officers, firefighters, construction trade workers, and more.
According to the Urban Land Institute (ULI), workforce housing is defined as housing that is affordable to households earning 60 to 120 percent of area median income (AMI) – or the median income for a family of four. However, the exact amount will often depend on the state, county and whatever market you happen to be in. The overall goal of workforce housing is for essential workers to be able to have affordable housing options in nice areas that are within a close proximity to where they work.
In the workforce housing space, firms are typically looking to create solutions that serves working families specifically – as the name suggests. Unfortunately, the incomes for a number of these families are insufficient and are continuing to drop lower each year. They do not make enough income to afford luxury housing, and also make too much to qualify for affordable housing. As housing costs and rent keep rising, wages and incomes remain the same, ultimately creating a gap that leaves these workers in the middle. This is where workforce housing comes into play.
The Difference Between Workforce Housing, Affordable Housing and Section 8
There are three primary housing terms that are often easily confused with each other: affordable housing, workforce housing and Section 8. While One Stop Housing uses both affordable housing and workforce housing terminology to describe our properties, it is crucial to understand the key differences of each housing term. The rental prices vary between our properties based on the location, renovations, number of bedrooms, and the property features.
Affordable Housing – By definition, affordable housing includes any home that services households at or below 60 percent of the median income. This is what local governments claim to get affordable rental housing for families.
Workforce Housing – Workforce housing is anywhere from 61 percent to higher figures. These workers are classified as middle income and are not dependent on government-subsidized rents. In more expensive marketplaces such as larger cities like New York, a higher area median income may be used.
Section 8 Housing – Often referred to as public housing, the Section 8 governmental-funded program provides a housing voucher to families or individuals that meet certain requirements. Once a family has been issued a voucher by the area’s housing authority, they may find a housing unit of their choice that accepts the voucher. One Stop Housing properties do not accept Section 8 vouchers as rent payment.
Workforce Housing Implementation Strategies
One of the most crucial steps to take to further encourage workforce housing development solutions is for cities to start the conversation within their communities to help raise more awareness. Common misconceptions are often associated with workforce housing and housing affordability that local governments need to clarify in order for communities to move forward with these initiatives.
As a result of today’s high demand and low supply, housing prices have continued to soar making housing solutions out of reach for many middle-income workers. According to a panel report published by the Urban Land Institute (ULI), certain recommendations and detailed implementation plans were given to Collier County, Florida to help the area address its workforce housing needs. The following are examples of implementation strategies included in the report that could be beneficial for other counties as well:
· Create a dedicated housing trust fund
· Repurpose vacant land and underutilized retail space
· Update land development codes to encourage development in already urbanized areas
· Allow single-family homeowners to build and rent out accessory dwelling units
The Benefits of Workforce Housing
Workforce housing helps to aid an important societal need by creating clean, safe and affordable homes for essential, middle-income workers. As single-family home costs continue to skyrocket, the role of workforce housing in our communities will only become more crucial. In addition, repurposing older properties by developing them into safe workforce housing communities eliminates the chance of that property further falling into disrepair. In return, area property values are raised, crime rates are reduced, and residents may be able to afford to live closer to their jobs – ultimately enhancing quality of life.
One Stop Housing: Workforce Housing Solutions in Florida and Memphis
At One Stop Housing, our team believes in the importance of improving lives by building affordable workforce housing solutions for any person living on a tight budget. By investing in workforce housing, we can help ensure that essential workers in our communities have access to affordable, safe living environments. While not all of our properties are classified as workforce housing, the majority of One Stop Housing’s larger communities of studio and efficiency units are. It is important to know that we do not accept Section 8 payment for rent at any of our properties.
To learn more about our properties in Florida and Memphis, browse our website and call 941-586-4947.