People all across the globe are facing the problem of an affordable housing crisis. It is affecting millions of individuals who belong to the medium-income spectrum. Grabbing a look at national analytics, you will understand that ever since 2018, the problem has aggravated. Individuals who offer 35 to 40 hours each week and earn minimum wages fall within this category. They are finding it hard to afford or two to a three-bedroom apartment for themselves because it adds to the burden on their financial expenses. Hence, countries in a global setting have come up to solve this problem.
Research reveals that the cost burden on the middle-income group has increased by 30%. It is a reason why they are looking for affordable, well-maintained, and reasonable housing to cut down on their struggles. Around two-third renters have reported the hardship of affording a new house for themselves because their savings are low. It is here that affordable housing turns into a crisis. It is not only limited to the middle and lower-income groups but also to other sections of society.
The problem of construction for investors by Maxwell Drever
You may be thinking that affordable workforce housing is only a problem for the middle-income group. However, it is not so. Even the investors and real estate agents face similar issues because construction material costs are soaring high. For example, the cost of lumber has increased by 16% in the last few years.
Although the index keeps on fluctuating, Maxwell Drever says it has remained elevated for the earlier few months. Remember that a minimum of 5 to 10% of the increase in construction material prices adds to the cost. Hence, the problem builds up for the investors and other related agents. It is why most home builders are finding it hard to construct reasonable and affordable housing to cater to the market.
Problems faced by the government
Federal governments introduce multiple policy options for providing tax cuts and benefits to society. All these get targeted towards the middle-income group; surveys reveal that they hardly get the advantages. On the other hand, some policy options get designed for the investors and real estate industry. Implementation of these policies is sometimes a challenging task. Hence, the governments are facing the problem of restrictive practices and their impact on the broader economy.
Transportation issues in affordable housing
Affordable housing is not only limited to the residence itself. The increasing rent and property prices push low. Hence, the middle-income groups move further away from the main urban centers. It is here that the problem of transportation comes into play. Low housing costs in the suburban areas often compel the middle-income groups to spend a lot on transport, claims Maxwell Drever.
Hence every section of society is suffering from the problem of affordable workforce housing. The crisis has taken a global form, and that is transforming itself every day. For dealing with policy options, transit access, job opportunities, people are trying to analyze the available options. Hence, the crisis is multifaceted and requires a combined effort.