Workforce housing refers to affordable housing options designed for households with earned income that is insufficient to afford quality housing near their workplace but typically above the threshold for subsidized low-income housing. It targets middle-income workers such as teachers, nurses, police officers, and other essential service providers who earn too much to qualify for traditional affordable housing programs but struggle to afford market-rate housing in their communities
. Key characteristics of workforce housing include:
- Income Range : Generally aimed at households earning between about 50% to 120% of the Area Median Income (AMI), though definitions vary by location and market conditions
- Affordability : Housing costs are ideally kept at or below 30% of household income to ensure affordability
- Types of Housing : Can include a variety of housing forms such as single-family homes, townhouses, condominiums, apartments, and accessory dwelling units, for both renters and owners
- Purpose : To provide permanent, year-round housing near places of employment, reducing commute times and supporting local economies by retaining essential workers
Workforce housing differs from low-income affordable housing programs (like LIHTC housing) in that it serves a higher income bracket and often involves different funding mechanisms and regulatory requirements
. In summary, workforce housing fills the gap between subsidized affordable housing and market-rate housing, ensuring that essential middle-income workers have access to reasonably priced homes near their jobs
