What is the Affordable Workforce Housing Crisis? Maxwell Drever Explains

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Employers and employees alike have been affected by the “labor shortage” trend. Businesses from across the United States are having difficulty filling unfilled positions. To get back to work, American workers are exercising tremendous negotiating power. Those who have jobs are resigning at an unprecedented rate to take advantage of the soaring demand for workers.

There are no problems with it at this point. As businesses hurry to rehire, average pay has increased at breakneck speed in decades. Despite this, the shortage continues to worsen. As of the end of August, there were still more than 10 million available positions, indicating that full employment will be a long time away.

Putting some light on affordable workforce housing

Affordable housing is an essential component of the country’s infrastructure. Companies and families can’t compete if they can’t locate the workers. Despite this, there are fewer properties for rent or sale in the United States now than at any other time in the past 30 years. This would need to treble this year’s original production to keep up with demand, depending on the analysis, according to Maxwell Drever. For more than a decade, new home supply has lagged behind the housing demand year after year, putting them farther as well as further behind the eight ball.

Just about everywhere, the price of housing and owning a home is rising due to this ever-increasing shortage. A whopping 13% has increased house prices across the country in the last year alone. As a result, more households are being priced out of homeownership because of rising property costs. This is the first time in decades when less than 50% of Hispanic homeowners and less than two-thirds of Black homeowners own their own homes.

How it can be dealt with?

To address the rising demand for rental housing, state and local governments have various options at their disposal. For example, builders can get density bonuses, those specific incentives, and “by-right” zoning; they can defer taxes and duties for just a predetermined amount of time; they can lower the cost of construction by contributing underutilized buildings as well as raw land; they can start creating initiatives to promote more excellent density development just next to the job as well as transportation hubs; and that they can lower infrastructure costs by contributing underutilized buildings as well as raw land.

With so many people in need, there is a need for public-private cooperation
Congress has the power to encourage more growth and preservation at the federal level. For example, tax credits for moderate-income housing as well as low-income housing could be combined. Affordability programs like HOME, Section 8, FHA Multifamily, and CDBG (Community Development Block Grant) can be preserved or increased in funding. In addition, they can help lower the expenses of development and operation by easing regulations. Maxwell Drever thinks that when the government and businesses work together, there is a greater possibility of finding workable alternatives to fulfill the increasing demand for rental accommodation.