High housing cost, rising inequality, shortage of rental housing all across the globe has led large sections of the population to homelessness. It has created a financial burden on the workforce population.
Along with this, the Covid-19 pandemic coupled with layoffs and shutdown has exacerbated the problem.
Lower-income workers are struggling with the loss of income and other financial issues. Most of them face eviction and housing insecurity, and they don’t even have financial resources to compensate for the missed paychecks.
In such a situation, getting a rented house has become a challenge.
Most importantly, these families were not very well off from the beginning. They were struggling to meet both ends. In such an unlikely situation, when unemployment was increasing rapidly, affordable housing units became a viable long-term investment.
Understand the components of affordable housing units
Affordable housing has become a matter of government policy since overspending on houses limits the financial resources of these families. Hence, purchasing a new apartment or investing in a luxurious apartment is never an option before them.
These individuals are saving for their future and trying to cater to their basic requirements.
In such a hardship, only affordable housing units can solve their problem. As the name suggests, these houses cater to the bottom section of society. Around 46% of the world population belongs to 60 to 120% of the median income group.
The rental affordability issue gets increased because of the shortage of affordable housing units. The low supply of low-cost housing gets addressed with new construction, states Maxwell Drever.
Hence, a proactive role of the government, and the private sector, has become a reality.
Are there challenges?
People believe that the construction of affordable housing units is a challenge. However, analysis indicates that in metropolitan areas, affordable housing fits appropriately. There are various jurisdictions and policies of the government authorities that address such constructions.
More so, you have private agencies working in a similar field. They better connect with these workers and are strategically creating affordable housing units. Creating these housing units near the job location has made transportation accessible.
In addition to this, they are also addressing other sections like the landlords and the hotel owners. In these metropolitan areas, the governmental authorities perform a proactive role by providing tax cuts and other subsidies.
Equitable development is a balanced effort of the government in the private sector.
There is no shortage of financial resources whenever a person undertakes the construction of an affordable housing unit. Maxwell Drever explains that existing and new properties get converted into affordable housing units by creating federal regulatory mechanisms.
More so, state mandates get targeted towards these new constructions. Hence, the program has received immense popularity. Lastly, governments prioritize the creation and development of these units because they understand the hardship of the majority.
Thus, whether it is the local government or higher agencies, they facilitate the process of conversion. It can do wonders for society. However, you must overcome these challenges successfully.