Why the affordable workforce housing crisis touches everyone’s life – explanation from Maxwell Drever

To understand why there is so much noise made about the affordable workforce housing crisis, you must look at some figures that will help understand the gravity of the problem and why it is not just a problem for the affected population but society in general Maxwell Drever. The affordable housing crisis is burning big holes in people’s pockets as almost a third of the American households spend more than 30% of their income towards housing, as revealed in a study by Joint Center for Housing Studies.  

Moreover, the spending on housing is more than 50% of the income of 10 million households. The majority of poor renter households (75%) with annual earnings less than $15,000 spend more than 50% of their income on housing. The figures are alarming indeed as it has an adverse impact on the economy.

The pandemic magnified the affordable housing problem

Since shelter is essential for all, families spend much more than they can afford for housing with only little left for paying for other goods and services.  It means that low income families must curtail their spending on essentials like health care and food. The exorbitant housing costs compel families to falter on rent or mortgage payments, driving them to homelessness due to foreclosures and eviction. 

The outbreak of the Covid19 pandemic turned the spotlight on the housing crisis and magnified the problem because not enough people have shelters to comply with the stay-at-home orders. Lack of housing exposed a large part of the population to the threats of the pandemic as they did not have a house that could help them stay indoors and protected from the novel coronavirus. 

Why the affordable housing problem is an issue even for those not affected by it

 Since the housing crisis impacts the economy in more ways than one, it is quite natural that the problem touches everyone’s life at some point.  Homelessness increases health problems because the affected people cannot pay for health care due to high housing payments. Moreover, it is costly for the places and cities that pay for the services, and the society suffers too because of lost productivity and potential. 

Search for affordable housing is driving the workforce to the fringes, suburbs, and rural areas where they can find cheaper housing but commute long distances to reach the workplace.  Ultimately it translates into congested roads and heavy traffic, which pushes up pollution and causes more damage.  

The housing problem primarily affected the low-income groups. It is now touching the lives of those in the bracket of $30,000 to $75,000 annual earning. A study by the Joint Center for Housing Studies, Harvard shows that the number of cost-burdened renters in this category has sharply gone up in recent years.  Ultimately it translates into congested roads and heavy traffic, which pushes up pollution and causes more damage.  

Since the housing problem affects economic mobility, it has a cascading effect on society that touches everyone. Therefore, to bolster economic growth that brings wellness for all, more stress inresolving the housing crisis is the need of the hour.