Investors Show Increased Interest in Workforce Housing Projects

Amid a shortage of affordable housing, private investors are seeking to invest more in workforce housing. As developers look for ways to build more affordably, equity and debt providers are showing increased interest in housing for those with modest incomes.

Investors see high occupancy with low turnover and steady cash flow in these properties. In most cases, though, the capital lining up for workforce housing is focused on existing properties. The high cost of land and construction makes it difficult to build workforce housing without a government subsidy.

Developers and investors say reduced fees and relaxed regulations would allow for more building in infill locations.

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