March 2021
What is Workforce Housing?

We recently spoke at the IMN Workforce Housing Virtual Conference. At CALCAP, we often say that we manage, lend, and invest in workforce housing. The term is frequently used housing circles, but not everyone defines it the same. What exactly is Workforce Housing?

According to the Urban Land Institute (ULI), Workforce Housing is defined as housing affordable to households earning between 60 and 120 percent of area median income (AMI). Workforce Housing targets middle-income workers which include professions such as police officers, firefighters, teachers, health care workers, retail clerks, and the like. This is different than traditional definition of Affordable Housing that is subsidized by the Low-Income Housing Tax Credit (LIHTC) program or the Housing Choice Vouchers program (formerly known as Section 8), which are two major programs in place for addressing affordable housing needs. Workforce Housing is sometimes referred to as “Affordable with a small a”. It is essentially housing “that is affordable”.

As housing prices have soared in the U.S., these traditional workers have struggled to buy a home as prices have increased faster than incomes in most markets. This has increased the demand for rental housing, as purchasing power to buy a home has declined. New development is hampered with restrictive zoning policies and regulatory hurdles that continue to constrain the supply and drive-up costs, which in turn drive up rents for new product.

We can add significant value to older housing assets by providing environmentally sustainable “green” upgrades, while also updating unit interiors and adding modern amenities like dog parks which have wide appeal to residents. These dynamics of increasing demand coupled with constrained new supply explains why we remain bullish on workforce housing. One of CALCAP’s core edicts is “improving the lives of our residents and the neighborhoods where we invest”. We believe that investing in workforce housing provides us the opportunity to do well, while also doing good.

Edward M. Aloe
Founder and CEO
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Latest Headlines...

Consumers more confident about making mortgage or rent

Freddie Mac's latest consumer survey found rising confidence for renters and homeowners

As of December 2020, 27% of homeowners and 35% of renters had asked for a housing payment postponement, most commonly due to uncertainty over making payments beyond the next one, Freddie Mac said. By February of this year, those numbers dropped to 19% of homeowners and 28% of renters.

“While the housing market appears to be healthy and has recovered faster than the rest of the economy, many segments of the population are still struggling,” said Donna Corley, executive vice president and head of single-family business at Freddie Mac.

Yardi: Rents Shift Closer to Positive Growth in February

Overall rents rose $3 from January to February.

Outside the top 30, Yardi saw a large increase in rents rising month-over-month in secondary and tertiary markets. Out of the 133 markets in the provider’s survey, 111 showed positive month-over-month rent growth. Indianapolis led the Midwest with 3.6% rent growth, followed by Kansas City, Missouri, at 2.3%.Out of the top 30 markets, 23 posted positive month-over-month rent growth. Yardi expects this trend to continue as the traditional leasing season begins. Phoenix showed the highest rent growth at 0.9%, followed by Miami at 0.8%. The bottom markets included San Francisco at -0.8% and Seattle at -0.7%.

Texas Apartment Demand Expected to Rise as Tech Giants Move In

Over 126,000 new apartments are under construction in Texas metros, with half a million new units delivered over the past decade.

A total of 126,900 new apartments are under construction across the state of Texas, according to Yardi Matrix. Of the state’s major metros, the Dallas metro has the most apartments expected to be delivered at 49,000, with 11,400 to be delivered in the city itself. Financial services company Charles Schwab announced its move to Dallas in 2019, and a few months ago real estate brokerage CBRE announced that it would move its global headquarters to Dallas from Los Angeles.

The Austin metro has 31,000 new apartments in its construction pipeline, of which 22,600 are located in the city, the strongest supply pipeline in any of the major Texas metros. Oracle is set to move to the Austin area, and Tesla is expected to open a new branch set to create 5,000 new jobs.

The Houston metro has 28,600 upcoming apartments, of which 17,400 are located in the city. San Antonio has 10,900 upcoming apartments, with 9,300 in the city proper.

On the lighter side....
About CALCAP Advisors
California Capital Real Estate Advisors, Inc., and its affiliate entities (CALCAP Asset Management I & II, CALCAP Properties, CALCAP Lending, and CALCAP Senior Healthcare I, collectively known as "CALCAP"), is a California based investment company founded and 2008 and headquartered in Pasadena, California. The Company sponsors alternative real estate investment opportunities focused on demographically driven housing. CALCAP has been able to consistently provide both individual and institutional investors with outstanding returns over the last 10 years. The Company's core strategies look to actively create alpha for investors while managing risk. CALCAP currently has over $350mm in Assets Under Management. To learn more visit
Social Mission
CALCAP has created the CALCAP CARES program to encourage employees to find a way to give back to the neighborhoods where we invest. CALCAP has created "GiveTime4Autism" as its initial program which will allow employees the ability to donate unused vacation and sick days for a very worthy cause.
The Sanborn House
65 N. Catalina Avenue   
Pasadena, CA 91106

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San Diego, CA 92130 

740 N. 52nd Street
Phoenix, AZ 85008 

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92 Argonaut, Suite 205
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Edward M. Aloe, Founder & CEO
(626) 229-9057

Patrick A. Wakeman, Principal
(858) 764-4890

Drew Buccino, Principal and COO
(602) 419-3381

Greg Blix
Director of Investor Relations
(805) 896-8500

Len Israel

Mark A. Mozilo, Principal
(626) 229-9056
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