What is Workforce Housing?

Finding and securing quality, accessible housing has always been a tricky proposition here in Hawaii, even before the COVID-19 pandemic.  It has been increasingly difficult for workers to either buy or rent their homes due to escalating costs and a market that often favors short-term rentals. Over the past few decades, workforce housing and other affordable housing projects have been planned  to establish a new way for local working families to secure their housing future in the Aloha State. But what exactly is workforce housing, and how does it benefit the population?

According to the Urban Land Institute (ULI), a worldwide educational nonprofit, workforce housing can be defined as:

‘Housing which is made affordable to households earning somewhere between 60 and 140 percent of area median income as established by the U.S. Department of Housing and Urban Development (HUD).’

At its core, workforce housing is both a philosophy and a practical approach to building communities.  The goal is to design and build affordable, quality housing for the sake of individuals and families whose earned income would otherwise be unable to secure such housing at pricing on the open marketplace.  As most housing-first and other subsidized programs are tailored towards those whose income is far below 60 to 140 percent of the area median income, many working families find themselves without the resources to address their affordable housing needs. 

Unfortunately, the availability and affordability of local housing – here on Maui and across Hawaii – has become increasingly difficult for families to contend with, due to both its limited availability and an escalating marketplace in which off-island buyers continue to bid up the price of many available units. There are several other causes of the ongoing housing shortage, including the rising overall cost of living juxtaposed with the stagnant growth of wages, all of which have resulted in a housing squeeze for many of our island’s longtime residents. 

Here on Maui the area median income as compiled by HUD varies by region but is typically between $85,000 to $134,000 for much of the island as of this year. Since the median sales price of a single-family home on Maui has reached an all-time high in four of five months thus far in 2021 – and topped over one million dollars earlier this year – it becomes much clearer as to why kama’aina families are struggling to secure their place on our island. Workforce housing seeks to ameliorate these issues by both constructing high-quality, affordable housing for working families while also engaging with the community at-large by repurposing vacant land and underutilized spaces to create new gathering places for everyone to enjoy. 

Alaula Builders is proud to be developing new workforce housing for the island kama’aina of Maui, including two brand-new projects set to begin later this year. It’s our mission to provide high-quality, sustainable homes for local families, bringing our ‘Ohana together in sustainable communities that honor the ‘aina and our island culture. Sign up for updates at www.alaularealestate.com to stay informed on all of the latest developments. A hui hou!