There are a lot of myths about affordable housing; for example, that they are built of lesser quality materials, but in reality, they bring a lot of benefits to those involved in this industry; both investors and the residents living here receive a lot of benefits.
However, this industry is still in shortage due to a lack of investors. Hence, state investors and developers like Maxwell Drever encourage people to invest more in this industry. He believes everyone has the right to live in a safe, high-quality house or apartment, and setting up properties of affordable workforce housing fulfills this need.
The modern, latest projects providing affordable workforce housing attract a wide, diverse range of residents, especially those who earn 60 to 120 of their area median income. These residents include emergency responders, educators, grocery clerks, assembly line workers, nurses, and hospital support staff.
The houses and apartments in this category are built with high-quality materials, and the exterior mostly matches typical market-rate housing. This housing benefits local businesses and larger companies investing in them; this is because affordable housing is in great demand and stays rented most of the time, and even some properties have long waiting lists due to the shortage. Residents here are more reliable when it comes to paying rents through the voucher system.
Investing in luxurious housing is a lot riskier, with occupancy rates that fluctuate with changes in the economy. Here are a few other benefits that investors and residents gain through affordable housing projects.
Increased Spending Power
Residents living in affordable houses and apartments can now spend more on other areas of life such as good nutrition and healthcare. For most middle-income and low-income families, paying rent at the end of the month is the biggest expense and worrisome. Living in affordable properties relieves people of this stress, allowing families to focus on other essentials of life.
Investors can now invest in these facilities and open up more shops, restaurants, and healthcare facilities in such properties. Hence, they need to stay up to date on this industry as it is flourishing consistently due to increased demand.
Building these houses and apartments requires many construction workers, tradespeople, leasing agents, property managers, security staff, and other workers. This industry creates employment opportunities for everyone in the city.
Not only does it provide job opportunities to other people, but it also opens up a lot of doors to good employment opportunities for residents. Residents are now closer to their workplaces and can easily travel back and forth.
Increased Taxes and Other Revenue for Local Governments
100 affordable workforce housing properties can generate up to $2.2 million in sales and taxes. Other than that, the government also earns through tolls, city fees, etc. Once people and authorities know the benefits of such housing properties, more investors and cities encourage their construction, says Maxwell Drever.
The Bottom Line
Everyone in society directly or indirectly benefits from the building of affordable housing properties. This includes residents, investors, local businesses, and the government.