In 2019, a Harvard study showed that 47% of all renters and 23% of all homeowners in the United States pay at least 30% of their annual income on housing costs, and those costs continue to rise. Consequently, many companies find it harder to bring in new talent from outside their local areas, according to real estate executive recruiters.
If they find outside talent, commuting costs can add up. A 2017 report from the United States Department of Labor shows that transportation is the second-largest expenditure for American households. Potential employees either choose to stay in their areas and accept long and expensive commutes or decide not to take better jobs because the costs are too high.
The Affordable Housing Solution
An ideal way to fix the problem is for communities to offer Low-Income Housing Tax Credits, or LIHTCs, to prospective real estate companies. These credits are tax incentives to construct or rehabilitate affordable rental properties for households with lower incomes.
Communities and counties implement these by setting up affordable housing departments and hiring housing directors that professional real estate executive recruiters have selected. These directors, in turn, require other qualified executives, including:
- Project managers
- Construction managers
- Asset managers
Advantages of Affordable Housing
Improved affordable housing access via communities set up with LIHTCs can lead to better employees. A British study from 2017 shows that people who have daily commutes of less than 30 minutes gain a week’s worth of productive time each year. Lower commutes are also linked to lower stress, depression, and economic anxiety levels.
At least 60% of workers say that they would make lateral employment changes if it meant a shorter commute, and 58% of large companies say that long commutes are a key reason they have employee shortages. Even so, many companies don’t consider a lack of affordable housing when hiring new talent.
Finding The Right Talent
LIHTC communities require many unique regulations and financial qualifications in an employment sector that’s already specialized. The Newport Group can help you find the right real estate development executives to manage your area’s LIHTC communities. Our real estate executive recruiters can help you find all of the executives mentioned here. With this expertise, your community can reap the benefits of low-income rental housing communities and the talent that
they’ll draw in.
We Network With A Purpose
The Newport Group is a leading executive recruiting firm with expertise in numerous industry verticals. We deploy proprietary data sets and meticulous processes to identify, recruit, place, and help retain blue-chip talent at leading companies nationwide. Turn the challenges ahead into competitive advantages alongside our help. Roles we’ve placed include Senior VP, VP of Operations, Sr. Construction Manager, and Operations Manager Telecom, to name a few.
Our team of recruiters is active in all sectors of real estate development, including production homebuilding, multifamily, commercial, retail, land, and asset, and property management. Construction verticals include commercial, civil, telecom, gas, power, pipeline, infrastructure, environmental consulting, and remediation. Ever strategic in our approach—we present talent that aligns with our client’s strategic objectives.