In a recent Member-exclusive Executive Roundtable, a unique opportunity emerged for organizations to support their employees in accessing affordable housing. This initiative, known as an Employer-Assisted Housing Program, can provide assistance for both renters and homebuyers.
Just two days before our roundtable discussion, the Washington Post published an article titled, “More of America’s homeless are clocking into jobs each day.” The article highlighted an alarming trend: rising rents are pushing wage earners out of the housing market. This urgent issue set the stage for our discussion on strategies for employers to help workers secure affordable housing.
The Financial Health Network’s 2023 Financial Health Pulse® report revealed that the proportion of Financially Vulnerable Americans increased from 15% to 17%. The report also identified that over a third (38%) of people working in the U.S. were employed at larger companies (500+), and over half of them (64%) were not Financially Healthy. Over 2 out of 5 (44%) workers employed by large employers reported that their spending was equal to or more than their income. This suggests that larger employers, in particular, can take action to impact whether the share of Financially Vulnerable Americans continues to grow.
As my colleague Matt Bahl wrote last year, there are various strategies employers can use to enhance their employees’ access to affordable housing. During our roundtable, we explored the Dallas Area Habitat for Humanity’s new Welcome Home initiative and discussed the critical role affordable housing plays in promoting financial health equity in the workplace.
Here are my top three takeaways from the discussion, which includes insights from April Honore, Dallas Area Human Resources Director at Habitat for Humanity; Matt Bahl, Vice President, Workplace Market Lead at the Financial Health Network; and Michael Collins, Jr., Vice President of Housing and Financial Capability at the National Urban League.
1. Understanding employee housing challenges is a critical first step.
Employers need to recognize the housing difficulties their employees face and the variables they can influence. As one roundtable participant pointed out, office location decisions made by companies can compound their workers’ housing challenges by also creating transportation challenges. For example, workers may need to move farther and farther away from offices in order to afford their housing needs. By understanding these challenges, employers can create tailored solutions that improve employee retention, among other benefits.
2. Historical discrimination continues to impact housing access.
The legacy of redlining, racial covenants, and other discriminatory practices continues to affect access to homeownership for Black communities and other communities of color today. For example, Michael Collins, Jr. told us about how areas affected by redlining, which was made illegal in 1968 with the passing of the Affordable Housing Act, still have gaps today in terms of homeownership rates and prices. In order to address these longstanding gaps and support equitable financial health, cross-sector collaboration is key and there is a role to play for employers.
3. The benefits of housing assistance can last for generations.
This takeaway is a call to action. It’s time for employers to implement affordable housing support as a part of their total rewards solutions. When employers help their employees access affordable housing, it can have a lasting impact on not only the employee, but also their family and future generations. The ripple effect of homeownership can also be seen in the workplace and the community in which the home is located. Research shows that higher homeownership rates among workers increases workplace retention and employee engagement, while also increasing employee well-being. The community benefits, too, because higher homeownership rates have been correlated to increased community involvement and volunteerism among residents, as well as better health outcomes for community members.
Dallas Area Habitat for Humanity has implemented one such solution – an Employer-Assisted Homeownership Program called Welcome Home. This program offers forgivable loans of $10,000 to Dallas-area employees to assist with home purchases. There are length of employment requirements and educational support embedded into the Welcome Home program, which launched in 2023 and has five participants enrolled to date. Program participant Ana Lopez joined April Honore in the roundtable to tell her story, which brought to life how impactful Employer-Assisted Housing Programs can be.
Ana Lopez is an employee of Dallas Area Habitat for Humanity who, before participating in the Welcome Home program, doubted she could afford to buy a home in the current market. She described the program as educational, providing valuable insights into building credit and the home purchase process. When asked how the Welcome Home program has affected her perception of her future financial health, Ana replied, “The Welcome Home program has been incredibly beneficial. I now feel well prepared and confident due to the valuable knowledge I’ve gained. I’ve not only equipped myself for my mortgage, but also for unforeseen circumstances, budgeting, and prudent money management.”
Last week, Ana saw windows and siding installed in her new home. She hopes to move in by the end of the year. Ana didn’t just buy a home, she’s building a home – an experience that was only available to her nonprofit employer’s community beneficiaries before the implementation of Welcome Home. However, through her participation in her employer’s affordable housing solution for employees, Ana is now a first-time homeowner, creating a stable environment for her family and laying the groundwork for building generational wealth. Ana told me that the new home will enable her children to no longer share a room. “They each have their own space to decorate as they please, which is my favorite aspect of the change,” she shared.
Look around at your workforce. How many Ana Lopez stories will you create with your own employee affordable housing solutions? The positive impact of implementing such a program, as Ana put it, “will undoubtedly leave a lasting impact on their [your employees’] lives. This experience will be cherished by them and their families for a lifetime.”
At the Financial Health Network, our Member network unites financial services providers, employers, and others who work tirelessly to build innovative financial health solutions for their customers and workers every day. Let’s come together to make sure the next Washington Post headline tells a much more inspiring and community-building story of how employers are positively impacting workers and their communities through employee affordable housing solutions.
To learn more about Employer-Assisted Housing Programs and housing equity, check out the following resources:
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Client Success ManagerFinancial Health Network