Enterprise Point of Contact:
Jeanie ShattuckSenior Policy Analyst
Last Updated: April 28, 2012
Issue Background: Workforce Housing
Workforce housing refers to housing that is affordable to moderate income households, commonly defined as those earning 60 to 120 percent of the area median income (it is important to note that there are many workers whose incomes fall below and above this income band that may experience housing affordability problems). The lack of workforce housing is a problem in many places across the country, particularly in high-cost cities like New York and San Francisco. The name “workforce housing” is derived from the population it seeks to serve, which is largely composed of teachers, nurses, first responders (such as firemen and police officers) and retail/office workers.Rental and homeownership opportunities proximate to employment centers and downtown areas can be scarce for households in this income bracket. If a household does not qualify for federal assistance but cannot afford to buy or rent in a desirable and well-located neighborhood, often the only alternative is moving to the suburbs or exurbs. Consequently, these individuals often have longer and more expensive commutes, spend less time at home with family and contribute to traffic congestion and air pollution. Despite the more affordable housing costs in the suburbs, the combined cost of housing and transportation can end up consuming the majority of a family’s income.
Current Policy State
State and local governments have begun to utilize many different methods to address the lack of workforce housing. These policy options include:- Incentive-based approaches, in which a government will provide density bonuses or ease parking requirements in return for the developer’s pledge to build units that are affordable to low- or moderate-income households;
- Inclusionary zoning laws, which require a certain percentage of new housing construction to be set-aside for affordable or workforce housing;
- Improving transportation options and encouraging transit-oriented development near employment centers; and
- Employer-assisted housing programs.
Legislative Priorities
Enterprise is supportive of expanding policies that help low- and moderate-income households afford homes close to jobs and services.Publications and Resources
Enterprise Resources
- Enterprise Community Development Notes: Workforce Housing
- Making Affordable Housing at Transit a Reality: Best Practices in Transit Agency Joint Development; Enterprise and FRESC
External Resources
- Center for Housing Policy: Workforce Housing
- Center for Neighborhood Technology
- National Low Income Housing Coalition: Out of Reach 2011
- US Department of Housing and Urban Development: Employer Assisted Housing
- US Department of Housing and Urban Development: Office of Sustainable Housing and Communities
- ULI J. Ronald Terwilliger Center for Workforce Housing