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cademic workforce housing is a vital tool for colleges and universities to attract and retain top talent in areas where academic salaries haven't kept pace with rising living costs. By leveraging their unique assets, higher education institutions can invest in affordable housing programs that benefit their faculty and staff.
Workforce housing fills the gap between market-rate housing and traditional affordable housing, catering to middle-income earners who earn too much for subsidized housing but struggle to afford market rates. In 2022, nearly one-third of US renter households fell into this category, with many facing cost burdens due to high housing costs.
Colleges and universities often possess valuable assets that can be repurposed for workforce housing development:
* Land: Institutions may have surplus real estate on or around campus that can be sold or leased long-term to developers.
* Capital: Strong financial positions enable institutions to access capital at lower interest rates, passing cost savings on to residents through lower rents.
* Renters: Employee and graduate student families seeking affordable housing near campus provide a reliable occupancy pool.
By creating workforce housing programs, higher education institutions can gain strategic advantages:
* Recruiting advantage: Convenient, affordable housing attracts and retains talent by reducing commutes and housing costs.
* Stronger town-gown relations: Institutions can leverage their land and resources to increase the local housing supply, strengthening ties with the community.
* Cash flow: Workforce housing generates durable renter demand and consistent returns.
Colleges and universities are using various models to develop workforce housing, often combining approaches to maximize impact. These include:
* Building new workforce housing
* Buying existing housing
Successful collaboration between higher education institutions and real estate developers begins by recognizing complementary strengths and mutual benefits.
