Investing in Workforce Housing Properties
Many people struggle with affording an apartment in the city that they work. In central Ohio, average monthly rents have boomed as the region grows, but wages have not kept pace. Some communities in the region, such as Whitehall, Reynoldsburg and Grove City, have taken notice and sought to encourage the availability of more affordable “workforce housing”. Developers cannot build new workforce housing without some subsidies due to the high cost of new construction projects, including the high cost of land, labor and materials. As a result, many investors are buying existing properties and making improvements. “Investors are going in and making the necessary improvements to increase rents – and the resulting value of the property – because they know that demand is very strong, specifically in the workforce housing segment,” says Brown. “They are making targeted updates consistent with the market at level and price point that working class families can afford.” ...