The Economic Imperative of Workforce Housing in California

When I talk with investors, policymakers, and community leaders about the future of California’s housing market, one topic consistently rises to the top: workforce housing.

Workforce housing serves the backbone of our economy — teachers, nurses, first responders, municipal workers, and countless others who keep our communities functioning. Yet, in California, the gap between what these essential workers can afford and what the market offers is widening at an alarming pace.

According to the California Housing Partnership’s 2024 Affordable Housing Needs Report, the state faces a shortfall of more than 1.2 million affordable homes for lower-income residents. McKinsey goes even further, estimating that closing the nationwide gap of eight to nine million units over the next decade could unlock $2 trillion in GDP and create 1.7 million jobs. That’s not just housing policy — that’s economic strategy.

At SkyRaad Partners, we see workforce housing as both a moral imperative and a sound investment. These projects deliver stable, long-term returns while producing measurable community benefits. By integrating innovative financing — such as Low-Income Housing Tax Credits (LIHTC), tax-exempt bonds, and public-private partnerships — we’re able to create high-quality, sustainable homes at price points that work for middle-income households.

The benefits go beyond the residents themselves. Affordable and workforce housing developments reduce commute times, increase disposable income for local spending, and strengthen regional labor markets. When essential workers can live near their jobs, we see lower turnover rates, higher productivity, and more resilient local economies. I had a meeting with the local school district and their main challenge was retaining teachers for our children. 

However, developing workforce housing in California requires navigating complex regulatory environments, rising construction costs, and intense competition for scarce funding. This is where experience matters. Over my career, I’ve managed assets from 180 to 1200+ units and executed on one of the most complex transactions successfully with more than $900 million realized, socially impactful developments. Each project has reinforced my belief that workforce housing is not out of reach— it’s a smart, sound and strategic investment.

California’s housing crisis won’t be solved overnight, but the path forward is clear: align public and private capital around the shared goal of building inclusive, connected communities. Workforce housing is where economic growth and social responsibility meet — and it’s where we at SkyRaad Partners are proud to lead.