Housing affordability has reached crisis levels in many parts of the country, leaving many workers—those who are neither high earners nor eligible for low-income housing—without viable options. This gap, often referred to as the “missing middle,” is where workforce housing comes in. Designed to provide stable, affordable housing for middle-income earners, workforce housing is a critical yet often overlooked piece of the housing puzzle.

What is Workforce Housing?

Workforce housing is designed for individuals and families earning between 80%-120% of the Area Median Income (AMI)—a range too high for traditional affordable housing but too low to afford market-rate rentals or homeownership. It often focuses on professions deemed essential to local economies, such as teachers, nurses, first responders, and law enforcement officers.

However, the concept of “essential work” was redefined during the COVID-19 pandemic when grocery store workers, retail employees, restaurant staff, and delivery drivers were recognized as essential to daily life. Despite their importance, many of these workers still struggle to afford housing in the communities they serve.

Who Benefits from Workforce Housing?

1. Middle-Income Earners – Workforce housing allows essential workers, including those in public service, healthcare, and education, to live closer to their workplaces, improving job stability and community engagement.

2. Service Industry Workers – While workforce housing traditionally focuses on middle-income workers, many retail, grocery, and food service employees fall into a grey area where they earn too much for low-income housing but too little for market-rate housing.

3. Local Businesses & Economy – Housing stability reduces employee turnover, long commutes, and worker shortages, keeping local economies strong.

4. Communities & Infrastructure – Reducing long commutes decreases traffic congestion and environmental impact, while stronger community ties benefit neighborhoods.

Challenges to Expanding Workforce Housing

Despite its clear benefits, workforce housing faces barriers to widespread adoption:

1. Funding & Policy Restrictions – Many workforce housing programs lack subsidies, making it difficult for lower-wage earners (50%-80% of AMI) to qualify.

2. Developer Hesitation – Real estate developers prioritize high-profit luxury units, leaving workforce housing underfunded.

3. Zoning & Local Opposition – Many cities restrict housing density near commercial hubs, forcing workers to commute long distances.

4. Competition with Low-Income Housing Programs – Many service workers qualify for low-income housing but face years-long waitlists.

How to Fix It

To make workforce housing more accessible, policymakers should:

• Expand eligibility to include 50%-120% of AMI workers, ensuring service industry employees can benefit.

• Encourage mixed-income developments, allowing for both middle-income and lower-wage housing.

• Adjust zoning laws to allow for greater housing density near workplaces.

• Offer incentives to developers who prioritize workforce housing over luxury developments.

Final Thoughts

The current housing market is failing the workers who keep our communities running. Workforce housing provides a practical solution to bridge the gap between low-income assistance and unaffordable market-rate housing. By expanding eligibility, adjusting zoning laws, and incentivizing development, we can ensure that teachers, nurses, retail workers, and first responders alike have the opportunity to live where they work—strengthening local economies and communities in the process.

The housing crisis is solvable—but only if we prioritize solutions that serve everyone, not just the highest earners.