The Economic and Social Impact of Workforce Housing Shortages Part 3

The lack of affordable workforce housing in southern Lee County has significantly impacted our local economy and social fabric. Businesses feel the strain, community services are stretched thin, and residents face decreased quality of life. We must address this shortage to ensure the thriving future of our community.

Economic Impact:

Lee County’s economy is unique. It is heavily reliant on major employers like FGCU, Lee Health, Arthrex, and Gartner, which are vital for the local economy. The county’s economic structure, which is distinct as it heavily depends on tourism, healthcare, and education, is facing challenges in southern Lee County due to the need for more affordable workforce housing. This need is especially crucial for economic growth.

Businesses in Lee County are struggling to hire and retain employees due to high housing costs. Local companies are finding it difficult to attract workers because they need help to secure affordable workforce housing nearby. A study from Toronto revealed the hidden costs of this housing shortage, including higher recruitment costs, longer times to fill job vacancies, and more money spent on relocation. These extra costs significantly impact local living costs and talent availability, impairing businesses’ ability to grow competitively.

Terry Flanagan

Terry Flanagan

Impact on Community Services:

The housing shortage also impacts essential healthcare, education, and public safety services. For example, Lee Health needs more affordable workforce housing to recruit and retain professionals.

Without workforce housing, new employees require higher relocation allowances for longer and more expensive travel and significantly higher salaries, increasing hiring costs. High housing costs discourage potential candidates, especially those just starting their careers. It also increases the likelihood that their tenure in the job could be short-lived if they find an alternative position in a location with lower living expenses. As a result, employers and the public they serve become frustrated with reduced services caused by high turnover and limited availability of entry-level staff.

Lee Health states that workforce housing is crucial for attracting entry-level and mid-level healthcare professionals concerned about living costs and quality of life. Improved workforce housing options would make potential employees more likely to accept a job opportunity and contribute to their long-term commitment to working and living in the community. Having employees work closer to their business has also reduced traffic congestion!

Lee County Schools face similar problems, needing help to hire and keep good teachers, which affects the quality of education for students. Lee Schools are investigating where to plan new schools to incorporate workforce housing options on the same site. However, this also requires cooperation with local planning departments. These shortages lead to smaller staff, heavier workloads, high staff turnover, and lower service quality.

Collaborative Solutions:

The housing shortage in Lee County requires the collaboration and teamwork of various authorities and municipalities. The rapid growth in Southwest Florida has presented challenges for planners in effectively managing resources. While transportation management is a key concern, it is crucial for planners also to prioritize addressing the housing issue to achieve a harmonious balance.

Diverse housing programs and services are imperative to cater to residents’ needs. Both municipal and county governments are responsible for developing these initiatives. Collaboration with neighboring communities is vital, particularly for services encompassing larger areas, such as those provided by FGCU, Lee Health, and Lee County Schools. Working collectively is essential to effectively tackle the housing shortage and provide for the growing population in Lee County.

What Others Have Done:

Other places with similar housing shortages have tried different solutions. Cities like San Francisco and Austin have created policies to increase affordable workforce housing, encourage mixed-use developments, and provide subsidies for essential workers. These examples can offer valuable ideas for solving the problem in Lee County.

  • Austin has put in place a blueprint for workforce housing. The blueprint includes goals for affordable workforce housing in every City Council district to ensure affordable workforce housing throughout the city. The Blueprint contains goals for constructing 60,000 housing units affordable to households at or below 80% median family income (MFI) and another 75,000 units for households earning greater than 80% MFI with specific goals for households at different income levels.
  • In San Francisco:
    • In July 2023, One City: A Housing for All Action Plan was published as required by Mayor Breed’s Housing for All plan.
    • In March 2023, the Potrero Power Station, a 2,600-unit mixed-use housing project located on the southeastern waterfront, became the first project in San Francisco to opt into an Enhanced Infrastructure Finance District (EIFD), which will allow the Power Station project to break ground on its first 105 units of workforce housing earlier than expected.
    • In March 2023, Mayor Breed announced a major overhaul of the permit process for housing projects.
    • In April 2023, Mayor Breed introduced comprehensive housing streamlining legislation to remove zoning and process barriers in the Planning Code, making approving new housing projects across the city easier and faster.
    • To support the economic feasibility of housing developments, including office-to-housing conversion projects, the Mayor and President Peskin successfully passed a housing stimulus package in July 2023 that significantly lowers inclusionary housing requirements and lowers and reforms the way development impact fees are charged to new development projects.

Many other examples put into effect by other municipalities illustrate the rapidly growing concern for the issues expressed in this article. Engage Estero would like to see our state and county officials and local Village Council take urgent action to ensure greater Estero maintains the standard of life residents have come to expect.

Conclusion:

The scarcity of affordable workforce housing in southern Lee County has significant economic and social repercussions that cannot be ignored. Addressing this issue demands immediate action and united efforts from local governments, businesses, community organizations, and residents. By prioritizing affordable workforce housing and transportation solutions, Lee County can drive economic development, improve community services, and elevate its residents’ overall quality of life. It’s time to come together and make a real difference for the future of our community.

 

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