Housing provides an individual with physical shelter with a sense of safe living atmosphere, belongingness, and community in all. Without stable protection, financial security will be hard to achieve. Higher education, grabbing jobs, childcare, and medical treatment will be impossible without affordable living places. Yet, various individuals lack access to stable and safe affordable housing in the present situation. The western world requires around 7.2 million residential units to cater to its workforce population.
- Take a look at the present situation
The creation and sustenance of affordable housing is a challenging phenomenon for government and non-governmental agencies. However, it has the power of positively impacting families and individuals. Presently, various multinational companies have started taking action to ensure more than 9000 affordable housing units for the workforce population. Although it is not sufficient, it is a good start. Along with this, various real estate investors and private organizations are joining hands to address this issue of homelessness.
- Is affordable housing only an issue for the workforce population?
If you look at reports, you will see that more than 12,000,000 houses are required to balance this issue of homelessness. The number is rising every day. However, only 35% of low-income families have gained access to affordable housing. Hence, it is unimaginably difficult for people to understand where the solution lies.
Remember that the workforce population has an area median income of 60 to 120%. Hence, Maxwell Drever explains that they cannot spend more than 30% of their income paying rent. These numbers are shocking. The lack of affordable housing has put pressure on these low-income families.
However, the problem is not only with the workforce population. Those who hold the means of production and the employers get affected massively. It is due to the short supply of workers. The workers have to stay away in the far-flung cities and travel long distances to come to the industries. As a result, the employers are not getting workers on time. It is affecting industrial operations and finances in the long run.
You must understand what the rent-burdened section of society is. Rent-burdened families spend around 30% of their income on paying rent. However, the increasing cost of houses in the job location is hampering their regular expenses.
- If you look at survey reports, you will understand that 2 out of 5 families cannot pay this rent and get severely burdened.
- These are indicators telling the masses how difficult it is for the workforce population to keep up with the increasing cost of houses.
They also have to think about medical expenses, health insurance, public transport costs, food, and other necessities. Hence, it is difficult for them to pay high rent for their houses.
- Affordable housing is not a one-day phenomenon: it needs maintenance
Every building requires upkeep. The same is the case with affordable units. People forget that affordable units are not available for individuals unless maintained. Hence every industry must maintain the quality standards for every team and every tenant. PAB or private activity bonds are significant sources of financing, states Maxwell Drever. Thus, real estate owners and developers must apply for these finances because they are an easy source of cash. Along with this, non-governmental organizations must come forward and join hands with governmental agencies to counter this challenge of homelessness.