The Development of Affordable Workforce Housing From Broken Hotels, as Illustrated by Maxwell Drever

The worldwide pandemic has halted the economy in different ways. Various areas of the economy, whether trade and tourism, real estate, supermarkets, etc., are finding it hard to generate their revenues. Although policymakers are trying to make things normal, the economy will take time to get back on track. In such a scenario, some sectors are making huge profits by way of minor modifications. 

One of these is the hospitality sector. By converting hotels into affordable housing, they are solving the problem of homelessness and generating profit. If you grab a look at the western world, you will see that around 35% of hotels have converted into permanent housing. It has thereby stimulated their revenues. Although the problem is recent, the conversion has helped the hotels with a supportive profit and has boosted society.

How are hotels converting into affordable housing? 

Hotels, as you know, are built for luxury living. They get designed differently. On the other hand, a house has a different plan. From the rooms to the living space to the kitchen, everything has different thinking and execution. The conversion of hotels into affordable housing requires slight modification. There is proper planning that goes behind this. Ever since the late 19th and the early 20th century, Maxwell Drever states that hotels and housing have remained on to extreme ends. 

However, in the modern scenario, the line demarcating these two sectors has become blurred. Various hotel owners are taking advantage of regulatory requirements and creating certain features that help them to qualify the sector of affordable housing.

What is affordable housing? 

Most individuals are unaware of the concept of affordable housing. Affordable housing is nothing but a housing design for individuals coming from low and middle-income groups. These are generally professionals like teachers, firefighters, mail carriers, traders, and much more. These individuals are finding it difficult to satisfy their economic expenses. Low wages and related financial hardship are reasons behind this. Hence, they are constantly on the hunt for affordable shelter.

Affordable housing is not only a problem for the middle and low-income groups. It is a problem for every section of society. These individuals who are coming from low-income groups cannot live in and around the workforce area. Hence they are forced to stay in the suburban areas. It has thereby added to the traffic problem and has resulted in congestion, says Maxwell Drever.

On the other hand, entrepreneurs are finding it difficult to get workers swiftly. 

Hence, the commercial setting is affected. On the other hand, you have residential buildings and hotels using this opportunity to make some money. They are using several regulatory frameworks to come up with convenient housing to solve the current problem. There is a striking balance between these sectors that protect the tenants and ensure quality revenues for the homeowners. There is a need to understand the crisis and find appropriate solutions to deal with the problem. If you do not undertake steps, then it might lead to severe repercussions. So you have to make a decision at the right time.

Heron Nelson

Heron is a business blogger with a focus on personal finance and wealth management. With over 7 years of experience writing about financial topics, Heron has established herself as a trusted voice in the personal finance space. She has a deep understanding of financial concepts and strategies, and is able to explain them in a relatable and actionable way for her readers.