Student Corner: What Exactly is Workforce Housing and Why is it Important?

<p>In many cities across the country, it is increasingly difficult for middle-income workers to buy or rent housing in the areas in which they work. This is in part due to wages not keeping up with increasing costs of living but is also due to the limited supply of housing affordable to these workers. In response to limited affordable housing options in the areas where they work, many middle-income workers move to the outer fringes of a region, leading to longer commute times for the worker, higher levels of traffic, and other negative externalities for the surrounding area (Parlow, 2015).</p> <p>The term “Workforce Housing” is becoming increasingly used in affordable housing circles, but what exactly does it mean? The purpose of this article is to provide a definition of Workforce Housing, offer a brief history of its origins in the U.S., and briefly discuss ways municipalities can help stimulate the creation of more Workforce Housing in their communities.</p> <p>Definition</p> <p>According to the Urban Land Institute (ULI), Workforce Housing is defined as housing affordable to households earning between 60 and 120 percent of area median income (AMI). Workforce housing targets middle-income workers which includes professions such as police officers, firefighters, teachers, health care workers, retail clerks, and the like (Parlow, 2015). Households who need workforce housing may not always qualify for housing subsidized by the Low-Income Housing Tax Credit (LIHTC) program or the Housing Choice Vouchers program (formerly known as Section 8), which are two major programs in place for addressing affordable housing needs.</p> <p>Origins</p> <p>Workforce Housing finds its origins within [...]</p>