Elon Musk is planning to build an entire town to offer below market rents to his employees. The new town is close to Austin, Texas where three of his companies, Boring, Tesla and SpaceX, have operations. Although company towns are not common today, Musk is not the first entrepreneur to realize that his ability to attract talent is tied to affordable housing. When the Manhattan-based piano maker Steinway & Sons — an entertainment industry giant of its age — expanded its operations to Queens in the 1870s, its corporate leaders did more than plan for a new factory. They built an entire new community complete with housing, kindergarten, library, and postal office.
What Employers Can Do to Address High Housing Costs
Some U.S. companies are starting to offer a range of benefits, from building housing for employees to subsidizing rents and mortgages.
March 14, 2023
KKGAS/Stocksy
Summary.
Housing is already a major part of every company’s HR strategy, simply because wages depend on housing costs. But some companies go beyond wages, attracting workers with rental or mortgage subsidies. And in a few cases they even advocate for more housing to be built in a community, or directly provide employee housing. Companies should consider all of these options. The appropriate approach will depend on the properties of the local housing market.