Charlotte Real Estate Development
The economic success of our beloved city is great for real estate. Profitable opportunity abounds and growth is omnipresent. But, there is a detriment lurking in the shadows of our prosperity - a lack of housing for our general workforce. Charlotte is experiencing that witnessed in other hot real estate markets: land has become so valuable that developers rarely build anything but large homes
WHY is this a problem? At first this may not seem troublesome. Land has always been appropriated for his highest and best use; it is classic manifest destiny. This is not a direct problem per se, but rather issues arise indirectly. Reducing the availability of affordable housing displaces our resident workforce population. Thus, our workforce is being effectively forced out.
Philanthropy and capitalism are no longer akin to oil and water. It is now understood that creating healthier environments is good for business. By creating a healthier community, workplace production – and, concurrently, quality of life - increases. Thus, by addressing the problem of inadequate workforce housing, the benefits will permeate through our business and social ecosystems.
SO what are businesses to do? Charlotte has mechanisms to combat this. One such example offered is a density bonus. The bonus allows for additional dwelling units per acre if the development devotes a minor percentage to specified income target levels. The greater density bonus allows developers to construct more dwellings and receive more total gross earnings.
Our lack of workforce housing offers positive opportunity for investors. Demand is the essential prerequisite to supply. Workforce housing is in great demand, and yet the market has not responded. Utilizing available incentives allows for increased profit and, concurrently, an offset of potential loss. This is opportunity on a silver platter.
Craig M. Morgan, managing attorney at Providence Law
Contact Providence Law for more information.
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