The concept of workforce housing has become a critical topic of discussion in Southern Lee County, encompassing areas like Estero, Bonita Springs, and the surrounding regions.
The housing crisis is not just about affordable living. It’s about the very backbone of our community, the healthcare workers, first responders, and other essential personnel. These individuals, who earn too much to qualify for subsidized housing but not enough to afford market-rate housing, are the ones who keep our community running and save lives. The crisis they face is a crisis for all of us, and it’s up to our community to address it.
Engage Estero’s Chief Business Administrator
Part One
Workforce housing, affordable to households earning between 60% and 120% of the area median income (AMI), is not just a matter of convenience. It is a vital component for the stability and sustainability of any community. It ensures that our essential workers can live close to their workplaces, enabling them to serve residents better, respond to emergencies promptly, and contribute to the local economy. Furthermore, it helps alleviate traffic congestion on our roads. This underscores the critical role of workforce housing in maintaining our community’s stability and sustainability.
The housing market in Southern Lee County has undergone significant changes in the last five years. Local real estate reports indicate that home prices 
have risen by an average of 30% since 2019. As of 2023, the median home price in Estero is $400,000, while in Bonita Springs, it is slightly higher at $420,000. Rental rates have also increased, with average monthly rents for a two-bedroom apartment reaching $1,800.
The escalating housing costs are creating a severe affordability challenge for local workers. For instance, a household with an annual income of $60,000 (approximately 80% of the AMI) would find it extremely difficult to afford homeownership or renting in this market without exceeding the 30% income threshold for housing affordability. This situation demands immediate attention and action, and the need for workforce housing initiatives is more urgent than ever.
Many people react negatively to promoting “workforce housing” in their area. However, this reaction is unfounded. The concept of workforce housing is not intended to impact the surrounding neighborhoods negatively.
While it may have been true in the past when local governments were responsible for public housing for low-income individuals, today’s approach is different. Due to the demand and limited resources, governments have shifted towards involving the private sector in workforce housing development.
Most workforce housing financing deals involve a mortgage, tax credits, and other funding sources, such as foundations, local trust funds, or state housing trust funds. There are also programs where apartment building developers agree to allocate 10-20% of the apartments to middle-income workers.
At the same time, a housing fund covers the shortfall in what they would pay in rent or mortgage payments. Sometimes, states or localities will relieve developers from their property taxes when agreeing to assign some apartments or homes for this purpose. Those needing workforce housing may only sometimes qualify for housing subsidized by the Low-Income Housing Tax Credit (LIHTC) program or the Housing Choice Vouchers program, two major programs for addressing workforce housing needs.
We must focus on local, state, and federal assistance to build an infrastructure supporting our community with excellent teachers and lecturers, healthcare workers, junior doctors, nurses, and first responders. This is an important topic that all residents of greater Estero should support.
The impact of this housing crisis is profound. Stories from prominent area employers, Lee Health, Lee County Schools, and FGCU, highlight many struggles.
Lee Health’s Molly Grubbs shares why affordable housing for their staff is essential. “Without affordable entry-level housing, recruits require higher relocation allowances to compensate for the higher cost of living. This will directly increase overall recruitment expenses. Additionally, a lack of affordable housing options can lengthen the time needed to fill positions.
Candidates may take longer to accept offers or decline them altogether if they cannot find suitable housing, further complicating the recruitment process in an already challenging job market. Also, high housing costs can deter potential candidates from applying, particularly those at the entry and mid-level stages of their careers who may not have substantial savings or income. This ultimately limits the pool of qualified applicants, making finding suitable candidates more challenging and costly.”
Lee County Schools Director of Talent Acquisition Sherman Stroman adds: “The overall cost of living, housing included, is one of the factors cited by teachers leaving the district. They are passionate about teaching children and responsible for caring for their own families.”
The housing crisis has most affected education, healthcare, and emergency services. These professionals are essential for the functioning and safety of our community, yet they struggle the most to find affordable housing.
Southern Lee County’s housing situation is particularly dire compared to neighboring regions. For instance, while also experiencing rising prices, Collier County has implemented more aggressive affordable housing policies, resulting in a slightly more balanced market. In contrast, areas like Cape Coral and Fort Myers, while facing affordability challenges, offer a lower cost of living, making them more accessible to the workforce.
The workforce housing crisis in Southern Lee County is urgent and requires immediate attention. Increasing home prices and rental rates are forcing essential workers to leave the community, threatening the stability and quality of local services.
Tackling this problem requires a comprehensive approach, including policy changes, incentives for affordable housing development, and community support. Understanding the need and addressing the workforce housing crisis is crucial to maintaining Southern Lee County as a vibrant, sustainable community where essential workers can live, work, and thrive.
Engage Estero is an all-volunteer, nonpolitical, nonprofit Community Engagement Association. We exist to inform citizens of significant community issues and encourage citizen engagement to impact the quality of life in greater Estero favorably.
