CBRE | A Case for Workforce Housing, a Market Perspective
On November 30, CBRE published The Case for Workforce Housing, A Market Perspective, a report that predicts workforce housing will outperform the rest of the multifamily housing market in 2019 and will continue to be a significant opportunity for investors in multifamily housing. CBRE’s research indicates the workforce housing community, which currently encompasses almost 13.5 million households, will further expand in the coming years due to the lack of wage growth, creating a growing need for housing affordable to this population. Exacerbating the shortage of workforce housing, older proprieties are deteriorating and aging out of supply. According to the report, workforce housing has attracted nearly $375 billion in investment over the last five years, more than 51 percent of all multifamily assets. However, it notes that investing in workforce housing comes with risk: When wages are stagnant, workforce renters are not able to afford rent increases that would support new production.