Workforce housing can serve as an investment buffer during recessionary times

What exactly is workforce housing? In simple terms, it’s housing available to households earning between 60 percent and 120 percent of an area’s median income (AMI). Essentially, market-rate rental housing catering to working-class Americans.

Workforce housing is not subsidized affordable housing, often called Big A affordable housing. Federal and state governments generally provide subsidies to developers of affordable housing, as well as the tenants who live in such properties.

In contrast, workforce housing is largely owned, operated and financed by the private sector. Furthermore, typical tenants renting these units are working-class Americans who are primarily employed in the education, healthcare, public service and local government sectors. They earn too much to qualify for government-subsidized affordable housing, but not enough to afford the higher-end rents of class A apartments.

Finally, most workforce housing doesn’t come from new development.