The Need For Workforce Housing in The Midst of a Housing Crisis

The United States is experiencing a housing crisis. Some can’t qualify for a mortgage, and others may rent or own and live in substandard housing. Workforce housing provides housing for those who work and make too much for affordable housing. Fruition is a developer and builder that builds workforce housing so workers can afford housing near their place of employment.

The Workforce Housing Crisis

According to the Joint Center for Housing Studies of Harvard University, 6.7 million households lived in substandard homes, including those with structural deficiencies and homes that lacked basic amenities such as plumbing, heat, and electricity.[1] Homes may have large open cracks, water leaks, holes in the flooring, exposed wiring, no running water, no hot water, and other structural issues.

Many people who live in affordable housing or make too much to qualify for affordable housing but not enough to afford adequate housing end up living in substandard environments. The US housing crisis affects those who make between 60 and 120 percent of the median income for the area they work in. Workers making 60 to 120 percent of the median income make too much to qualify for affordable housing but not enough to get a mortgage to afford rent.

What is Workforce Housing?

Many use the terms “workforce housing” and “affordable housing” interchangeably. However, there is a significant difference. You can only qualify for affordable housing if you make less than 60 percent of the median income for your area.

Those who make between 60 and 120 percent of the median income are still unlikely to qualify for a mortgage.[2] Many in that wage bracket will also not qualify for rentals. Workforce housing targets people in this income bracket who are looking for affordable housing prices near their place of employment.

Another difference between affordable housing and workforce housing is that those who live in workforce housing communities, whether they rent or purchase, are contributing members of society – that is, they have jobs, but the jobs do not pay enough for them to qualify for a mortgage, especially when housing prices and interest rates are up.

The Hall of Shame

When you are forced to accept substandard housing, you have to live in potentially dangerous conditions, and your tenant rights have a higher chance of being violated by unscrupulous landlords. When housing fails to meet the basic needs and hygiene and safety standards, it is considered substandard. Some of the common issues found in substandard housing include:

Structural Problems: Cracked walls, uneven floors, deteriorating foundations, sagging roofs
No HVAC: Improper heating and cooling for hot and cold climates, exposing residents to extreme temperatures
Plumbing: Inadequate water supply, lack of sanitation facilities, leaking pipes
Poor Ventilation: Poor indoor air quality, moisture buildup, mold and mildew growth
Pest Infestations: Insects, bedbugs, cockroaches, rodents and other pests
No Adequate Sanitation: No clean water, non-functional toilets, and inadequate sewage disposal
Unsafe Electrical: Outdated or faulty electrical wiring (fire and shock hazard)
Lead Paint: Lead-based paint may be present in individual and commercial housing structures built before 1978
Inadequate Insulation: Energy inefficient, difficult to maintain comfortable temperatures inside the dwelling
Accessibility Issues: No access for people with disabilities, forcing them to stay inside
Overcrowding: Too many people living in a limited space can cause health and safety issues

In many cases, substandard rentals have these issues. People who cannot afford to maintain their homes also face these issues. People living in these conditions often go to work every day. They make more than the minimum wage but cannot afford repairs or a better rental.

Guide to Ideal Workforce Housing

What is the answer to the affordable housing crisis? The answer is ideal workforce housing in areas where many people work but cannot afford to live. Workforce housing offers those who work hard a safe place for themselves and their families. Fundamental principles and features include:

Affordability

Adequate workforce housing is designed to be more affordable for those with a moderate income. These families make too much to qualify for affordable (subsidized) housing and cannot afford housing at the market rate.

Location

Ideally, workforce housing is located close to public transportation and places of employment. Schools, grocery stores, and healthcare facilities are also close to workforce housing communities.

Income Eligibility

Because many people earn between 60 and 120 percent of the area’s median income, those who qualify for workforce housing, whether rentals or purchases, meet this threshold. However, some developers may allow people earning less than 60 percent of the median income to qualify for workforce housing.

Quality Design and Construction

Developers of workforce housing communities and developments provide safe and well-maintained housing units. These units, whether individual homes, townhomes, condominiums, or apartments, meet all building codes and standards.

Rental and Ownership Opportunities

Many developers offer communities with rentals and homeownership opportunities to accommodate the wants and needs of everyone in the workforce. These single-family residential homes or multi-family dwellings are designed to cater to the working class, including educators, first responders, and those working in service, such as at hotels, restaurants, plumbers, electricians, and landscapers.

Public-Private Partnerships

Some workforce housing initiatives are collaborations between the private entity developer or builder and government agencies. They may include non-profit organizations and other stakeholders for their expertise and the resources to address the housing needs of those in the workforce.

Take Action

The significant increase in the cost of living has created a housing crisis that affects primarily those in the workforce, including teachers for your children, first responders who keep you safe, nurses who tend to you when you are sick, and service industry workers – those who cater to your needs in establishments such as grocery stores, hotels, restaurants and more.

At Fruition, we believe in the transformative power of workforce housing reform. Our vision is that those working hard for a living should not suffer through living in substandard housing or paying rent or mortgages so high that they cannot afford maintenance, groceries, medications, and other necessities.

Workforce housing also builds stronger communities. When essential workers can afford to live near their jobs, they spend more time with their families and less time commuting. They become more invested in their communities and foster community pride and the well-being of their neighborhoods. Finally, with stable housing, people can further their education and pursue better career opportunities.

You can help by sharing our mission with your family and friends. Advocate for workforce housing reform to eliminate substandard housing for the lower middle class. Staying informed about workforce housing policies and advocating for workforce housing development with your elected officials also helps.

Volunteering your time and talents by helping build homes, providing support services to residents, and organizing fundraisers are additional ways to help build more cohesive and safe neighborhoods.

Supporting Workforce Housing: Building Communities for Essential Workers

If you’ve ever applied for a mortgage, you know the requirements for approval, including having about 33 percent of your income free for housing – the principal, interest, insurance, and taxes. Some people barely make it – they fall just under the debt-to-income ratio, even though they don’t have a lot of credit card debt and only spend money on necessities. These people are often forced to live in substandard housing.[3]

Learn more about workforce communities and help us build communities that cater to those who don’t make enough to find a rental or purchase a home that meets their needs close to their workplace.

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Frequently Asked Questions

What is substandard housing?

Any housing, whether a rental or a residential property, is substandard if it has structural issues, is infested with pests, has electrical problems, or has sloping floors. Holes in the floors, disintegrating roofs, dirty water, no running water, sewer issues, and holes in the roof are also substandard living conditions.

What are the rights of a tenant?

Tenants have many rights that are outlined by each state’s laws. However, regardless of where a tenant lives, they have the right to live in a well-maintained home with access to clean, running water, working sewer facilities, a home without mold and mildew growth, and a home without structural issues.

What is considered overcrowding in a house?

The National Center for Biotechnology Information defines overcrowding as more than three people per inhabitable room in a house or apartment.

What are considered unsanitary living conditions?

Unhygienic and unsanitary conditions include no running water, dirty water, non-working toilets, and sewer or septic issues that may cause slow draining or backups.