The two terms, ‘Affordable Housing’ and ‘Workforce Housing,’ frequently confuse people. If you want to define affordable housing, you can say that any housing that helps serve families who earn below 60% of the median income is affordable housing.
On the other hand, workforce housing caters to families who have an income higher than 61% of the median income. This category of families sits between affordable housing and luxury housing. Their earnings are usually between 80% and 120% of the median income. This amount could differ and change from state to state. Families who have a fixed income find workforce housing an excellent and more consistent opportunity for renting homes and also for ownership of these units. With that said, having an accurate knowledge of housing schemes is imperative, and to help you with it, William Schantz has come to your rescue!
Origins of Workforce Housing
The origins of workforce housing can be traced back to Telluride and Aspen, Colorado, in 1974. The wide difference between the people’s wages and the high costs of homes made it impossible for local working families to buy homes. The land and property prices rose sharply when Hollywood and New York buyers headed there and made investments into the lands and properties.
At this time, a plan was formatted to help the locals purchase homes based on their wages and affordability. In the early ’90s and ’00s, house prices rose so much that many people were forced to move away from their homes to areas where houses were more affordable. This resulted in daily long-distance commuting between their homes and workplaces.
It was basically meant for public employees, who often could not afford to live close to their workplaces. People like police officers, firefighters, and teachers were included in this. It also included people in construction, retail, office, and service workers.
Implementation of Workforce Housing
Many people don’t have sufficient knowledge or information about the housing options that are available to them. Local governments need to provide a clear understanding of workforce housing to the public so the middle-income working families can take advantage of and benefit from the incentives given. Nevertheless, William Schantz is an excellent workforce housing expert who can help you out with the information related to housing options and how you can get the most benefit out of it.
After the Great Recession of 2007 to 2009, the affordability of housing to middle-income families worsened as there was a significant decrease in the production of new housing units. There were very few housing options left for middle-income workers in these cities.
However, the housing market and the economy have recovered significantly now compared to back then. Exploration and implementation of strategies are being conducted to help create more workforce housing schemes.
Some primary considerations are taken into account for workforce housing. People should be employed and fall in the income-earning level of between 60% to 120% of the Area Median Income. The workforce housing should be located near or around the area of employment to avoid lengthy commutes, heavy traffic, and much more, all of which help the daily living conditions of these families.
Workforce housing provides a large number of benefits to working families. It is meant to give families a comfortable life in a good community while providing children a place to go to school while being affordable to these working people.
For more information about workforce housing and to know if your family qualifies for these workforce housing schemes, contact William Schantz now for all the information you need.