Demand For Workforce Housing

[Mike Dymski]

I don't get too caught up in national market forces as they are highly unpredictable but there seems to be one undeniable trend that is hard to ignore and that is the continued and growing lack of supply of affordable housing.  There are too many causes to list but here are a few:

• Too costly to build
• Existing workforce housing communities are getting re-positioned to a higher class
• Zoning restriction on mobile home parks are limiting their supply
• Aging population with limited savings
• Wage stagnation
• Tighter lending standards
• Low interest rates have pushed housing demand and prices up
• Tax law change will make low income housing tax credits less valuable (future impact)

Below is one of many articles on the subject.

 https://multifamily.cushwake.com/Download/File?Pat...

Would love to hear others feedback.

[Sam Grooms]

In California, the only way I've seen this addressed is through construction grants from one or all three levels of government. In some areas, I've seen affordable housing construction outpace Class A construction due to grants. 

I'd be curious to hear ideas on how to address the issue without government assistance.