Housing the Workforce
By Ken Munkacy, Vincent DiSalvo, Justin Hoogerheyde and Jed Daniel, Kingbird Investment Management
The workforce housing segment faces a severe undersupply of attainable and quality rental housing. Investors would be wise to take notice. America’s housing shortage is a result of a confluence of factors that started with, and have since accelerated from, the 2008–2009 Global Financial Crisis; specifically demand growth spurred by the formation of smaller and non-family households and relative supply dilution resulting from onerous regulations, growing construction costs and labor shortages.
While these obstacles constrain supply growth across all income categories, workforce targeted housing has been the most affected, despite the pressing nationwide need for housing suitable to this demographic.