Key Challenges

Too Costly: Employers consider the costs too high, especially if they are already paying for a robust set of benefits.

The employer costs of employer-assisted housing (EHA) programs can pay for themselves via savings and return on investment. Consider the high cost of turnover, time lost to commuting, and similar “hidden” costs for employers. Additionally, unlike other employee benefits, this benefit costs employers nothing unless the employee takes advantage of it.

Employer-assisted housing may help employers revitalize neighborhoods with soft housing markets in which the company has real estate investment. In other words, EAH can help increase the value of the property the employer owns by making the area more stable and desirable.

Out of Scope: Employers don’t see themselves as in the business of affordable housing. The term “affordable housing” can have negative connotations for business leaders.

Tailor messages to the audience, emphasizing the corporate benefits of investing in employees and framing housing as a consumer issue rather than a social issue. Consider focusing on employee homeownership (“it is important that your employees can afford homes in your area”) rather than housing advocacy (“it is important that this area has more affordable housing”). “Subsidies” and “projects” (vs. developments) also carry negative connotations. This handbook offers additional messaging tips.

Gentrification & Displacement: Bringing new homeowners into a specific area can increase gentrification and/or displacement of the residents who live there.

Employers and program sponsors can mitigate this by limiting employee assistance to lower-income employees (vs. mid-range or management), so that the program helps support those who would otherwise be threatened by forces like gentrification.