The worldwide pandemic has created multiple opportunities for private businesses and government agencies to try out new ideas to address the national and international housing shortage. Now, what is affordable housing? Well, specifically speaking, it is the issue of affordable housing. It gets targeted towards the middle-income group, which comprises professionals from different walks like teachers, firefighters, technicians, etc.
Providing this section of society with a residence has given an impetus to conversion—the procedure of converting hotels into affordable housing estates. As a result, governments have come up with welcoming policies to provide hotel owners and homeowners with an opportunity to transform their properties into residential units. Well, various localities have leased out spaces for providing shelter to individuals experiencing homelessness. Hence, every section of society is trying to discover new opportunities for acquiring and converting vacant spaces into permanent housing estates.
Hotels are struggling during Covid-19 – Maxwell Drever
The pandemic hit on the economy is felt by different sectors. The hotel industry is no exception in this regard. If you take a look at survey reports, they reveal the negative impact of the pandemic on the revenues of the hospitality sector. Their income got reduced by 18%. Hence, the hotel industry is at a disadvantage in position. Following these various hotels, owners have tried to convert their structures into affordable housing estates. Although their strategy and policy differ, the purpose is the same.
They are slowly rebounding their property into affordable workforce residences. It has thereby solved the problem of homelessness of millions of individuals all across. By providing individuals with full accommodation, Maxwell Drever speculates they have made a breakthrough in the economy. However, the conversion process is not that simple. It takes a lot of effort and time. Apart from this, governmental policies and rules, and regulations also play a significant role. The federal agencies have come up with liberal policies to support this conversion process.
Convert hotels into affordable housing
The conversion process is not only profitable for the middle-income groups but also the homeowner. All it does is increase the opportunities in the industry. Since the sector itself was suffering, the conversion process has given an impetus to the hospitality sector. By providing the middle-income groups with accommodation, they have gained average revenues. Hence, the problem gets solved to some extent. It has helped in limiting the symptoms of turmoil introduced by the pandemic. With the shutting down of properties and the steep losses, things were challenging for the homeowners. Various hotels which have converted to housing now create an opportunity for increasing their revenues. Turning the hotel into affordable housing works best in those markets where the prices of other properties are high.
Hence, the comparison comes into being.
According to Maxwell Drever, hotel rooms that are well-equipped with different basic amenities provide an entire space to an individual. The extended stay in these hotels works best for these individuals who want accommodation near their job location. Hence, the conversion has taken advantage of the market circumstances for solving the problem of affordable housing.