A recent survey conducted by JW Surety Bonds, based in Pipersville, Pennsylvania, has shed light on an emerging trend in employee benefits: housing assistance. With the survey including over 700 employees and 300 employers, it’s revealed that a quarter of employers, predominantly in the marketing, finance, and information technology sectors, are contemplating the introduction of housing assistance as a benefit in the current year.
The data indicates a strong interest among employees in housing support, with more than a quarter willing to change jobs for housing payment assistance, nearly a third preferring housing benefits over a salary increase, and 43% favoring them over additional paid leave. Currently, only 13% of surveyed employees receive such benefits, but those who do report significantly higher job satisfaction, mental well-being, and productivity.
The backdrop to this interest is the burden of housing costs, with half of U.S. renters spending 30% or more of their income on rent, as highlighted by a report from the Joint Center for Housing Studies at Harvard University. Given the national average rent of $1,710, a household must earn at least $68,400 annually to avoid being cost-burdened. Employers planning to offer housing assistance in 2024 propose an average annual contribution of $6,201 per employee, covering roughly three and a half months of rent. The primary motivations for these benefits include enhancing employee well-being and improving talent attraction and retention, with some employers viewing it as a means to encourage a return to the office.
Innovative housing solutions are also being explored, including company-oriented residential developments like Elon Musk’s Snailbrook for Boring and SpaceX employees in Texas, and Google’s North Bayshore project near Mountain View, California. While 44% of survey respondents expressed openness to living in a community predominantly consisting of coworkers, with managers showing slightly more interest than employees and business owners, there are concerns. The Center for American Progress warns that such “company town” arrangements may lead to wage suppression and reduced job mobility, highlighting the complexity of implementing housing benefits as part of employment packages.
