Workforce housing is a stable, long-term investment that enables investors to earn better and consistent returns while providing much-needed moderate-income housing to areas of the housing market where supply is severely limited.
Workforce housing will be a reliable source of income, both now and in the future, due to a steady and stable low-income family renter demographic.
This demographic can be effectively served by purpose-built rental housing, making it a highly appealing housing option for investors and renters alike. Consider workforce accommodation as a larger family version of “co-living.” It follows the same economic sharing paradigm as co-living for younger people.
So, on that note, listed below are a few reasons to invest in workforce housing. If you’re an investor looking to buy and put up your property for rent, look at these benefits through the lens of a microscope.
Workforce Housing Is A Steady Form Of Income
Adult children and their families typically earn between 30 to 50,000 dollars per person working in the service industry. However, when these families live together, they earn between 80 and 120,000 dollars per year, putting them in the intermediate income category in most coastal urban marketplaces.
So, one of the biggest reasons to invest in workforce housing is that it offers a unit type that is directly suited to this economic sharing model, such as five bedrooms and four bathrooms. At the end of the day, the higher the number of individuals living in shared accommodation, the easier it will be to obtain rent.
Workforce Housing Industry Is Low-Competition
One of the most prominent reasons to invest in workforce housing, Maxwell Drever suggests that the workforce housing market is not highly competitive. So, as there is less competition, a workforce housing project in a given location is more likely to be the only one.
Due to this, you will almost certainly receive several offers. Furthermore, unit absorption will be reduced. Therefore, depending on the demand for housing in a particular area, you might be able to grow your portfolio by investing in other neighboring projects.
You’ll Be Helping Low-Income Families By Investing in Workforce Housing
As of today, demand is high, and supply is low in the workforce housing marketplace. This is one of the biggest reasons to invest in workforce housing, whether you’re a rookie or a seasoned investor.
Low-income families typically have more than one family member earning money and have excellent connections. In fact, teenagers and school-going children who belong to such families are always looking for job opportunities near a reputable housing district.
Finally, these low-income families also want to avoid traveling long distances for work, school, shopping, or household chores. As the money these families earn is limited, you’ll be doing these families a favor if you provide them with high-quality, affordable workforce housing.
In the end, the reasons to invest in workforce housing are many and cannot be covered in one short article. However, going through the reasons mentioned above and adding workforce housing to your investment portfolio as soon as possible. After all, the global workforce is growing at lightspeed and needs homes to live with their families. So, why not provide them with such accommodation as an investor!
Reasons To Preserve Affordable Housing
The need for affordable housing in the United States has been consistent, and it has been on the rise since COVID-19 hit. This need is widespread, ranging from extremely low to middle-income families. However, middle-income renters, families earning between eighty and one hundred percent of the AMI (Area Median Income), are frequently ignored.
They cannot afford market-rate rental accommodation, unlike households earning above the AMI. Furthermore, middle-income renters are not eligible for the same government housing subsidies as low-income families. On top of that, not many services can help these families cope with increasing rental prices.
Therefore, our duty as investors and community leaders is to play our part. That being said, listed below are a few reasons to preserve affordable housing.
Preserving Affordable Housing Helps Build Trust With Tenants
Operators and owners can expect reduced vacancy rates because affordable workforce housing is always in great demand. However, you can expect higher long-term occupancy rates if you keep your property in good condition and ask for below-market rent.
In the end, long-term tenants are more actively involved in their local community and take great pride in looking after the well-being of their neighborhood. So, preserving your property for such people can help you gain their trust and, in turn, receive rent without any delays!
You Can Get Tax Abatements and Exemptions When Preserving Affordable
Maxwell Drever of drever capital management suggests that one of the biggest reasons to preserve affordable housing is excellent tax abatements and exemptions. After all, some countries and cities offer excellent tax incentives to investors and owners who go the extra step and preserve their properties.
For instance, Portland Oregan’sMultiple-Unit Limited Tax Exemption Program offers owners property tax exemption if they can perform timely structural improvements. Furthermore, Washington D.C. also gives tax breaks to owners who give out their property for rent to low-income families.
Preserving Affordable Housing Leads To Economic Security
Even though many homeowners struggle to find excellent, well-maintained properties in their price range, there is no doubt that renters face more housing affordability issues than homeowners.
However, when you provide renters with high-quality, preserved housing at a lower-than-market rent, they can spend money on important family matters. These include neighborhood shops, doctor’s offices, and grocery stores, improving the community’s overall economy.
Preserving Affordable Housing Preserves The community
Other reasons to preserve affordable housing include improved education and health outcomes for children, more job opportunities, improved purchasing power, and lower crime rates. This, in turn, preserves the community’s character. In the end, people searching for affordable housing will also consider locations with diverse communities, local businesses, and a better overall living experience.
When it comes to breaking down systemic racism and driving an inclusive recovery, preserving affordable housing is critical. Sure, the affordable housing sector is somewhat of a risky investment. However, consider the favors you’ll be doing for underprivileged families working at minimum wage. In the end, the reasons to preserve affordable housing are many. So, please read up on the ones mentioned in this article, and don’t hesitate to preserve your property!