In most parts of the globe, middle and low-income groups find it difficult to purchase or rent housing in and around their work area. Low wages and the increasing economic crisis because of the COVID-19 pandemic are some reasons behind this. Along with this, a limited supply of affordable housing is a major cause behind this. In response to this problem, various governmental and non-governmental organizations have come forward to solve the issue.
These organizations have taken the task of building housing estates for individuals belonging to low-income groups. It has not only added to accessibility but has also solved the problem of traffic. Remember that moving away from the workplace adds to negative externalities and longer commute time for these individuals. Hence, affordable workforce housing has become a booming industry.
Definition and related aspects of affordable housing
Workforce housing is affordable housing for those families who belong to low and medium-income groups. It targets middle-income individuals that include individuals from different professions. It includes firefighters, police officers, healthcare individuals, retail clerks, and teachers. Along with this, Maxwell Drever believes various other professionals come within this ambit.
The household requirement of these individuals goes beyond their economic capacity. Hence, they are always looking out for subsidized housing to cater to their condition. As a result of this, programs and policies have been a device to address the problem. The governmental agencies are trying to fight this issue.
The current scenario
After emerging in the western world, workforce housing has now taken a global stand. Affordable housing now interests individuals of different sections. It is not only a problem for low-income groups, but it’s also affecting the employers, federal government, household owners, and much more. Every section of society is now trying to rehabilitate the issue and provide individuals with affordable housing. Remember that workers who live on the far fringes of the city have to travel long distances to come to their workplace. Hence, employers are finding it difficult to get workers in and around the area.
Various governments all across the globe have come up with different policies and acts to launch the initiative. They are trying to develop community blocks and target the problem, says Maxwell Drever – They are trying to highlight the issues of affordable housing and thereby developing household sectors for these individuals. Moreover, private sectors are also encouraged to partner with governmental organizations in this operation. Hence, a public-private partnership has become a viable model to provide low-income groups with subsidized housing estates.
Ever since the 1940s till the 1990s, the problem of affordable housing was nowhere. Hence ever since the 1990s, the situation has risen and affected the housing supply. Various governmental policies are trying to remedy the issue and provide individuals with housing estates in and around the workplace. However, because of their low wages and related economic aspects, the middle-income group finds it hard to deal with higher costs. Therefore due consideration to the issue becomes mandatory.