The Strength Of Workforce Housing As An Investment Class

As the real estate cycle lengthens and property prices continue their decade-long rise, many commercial real estate professionals across the country are finding it increasingly challenging to identify value-add acquisition opportunities. In my view, one of the few exceptions to this rule is workforce housing.

The dearth of accessibly priced housing in major metros like San Francisco and New York City has been widely discussed, and in my mind, there is no question that our society has to do a better job of enhancing and expanding the stock of housing that is affordable to middle-income-earners. Fortunately, the current supply-demand dynamics have made workforce housing properties in strategic growth markets near city centers some of the most compelling investment prospects available today...


RSK: Workforce housing is a hard way to make a profit. People want to rent houses and town houses but the cost of new construction is putting the squeeze on this just like purchasing a home. And for investors, well the returns are shrinking unless you are in an Opportunity Zone.

- - Volume: 7 - WEEK: 34 Date: 8/20/2019 6:01:52 AM -