Skip to main content
  • Foundation
  • Executive network
  • CEO Circle
  • Enterprise Solutions
  • Linkage Logo
  • Store
  • Sign In
  • Account
    • My Account
    • Logout
    • Global
    • India
    • MENA
SHRM
About
Book a Speaker
Join Today
Renew
Rejoin Now
Renew
  • Membership
  • Certification
    Certification

    Smiling asian student studying in library with laptop books doing online research for coursework, making notes for essay homework assignment, online education e-learning concept
    Get Certified!

    Be recognized as an HR leader with your SHRM-CP or SHRM-SCP credential.

    • How to Get Certified

      Demonstrate your ability to apply HR principles to real-life situations. No other HR certification compares.

      • How to Get Certified
      • Eligibility Criteria
      • Exam Details and Fees
      • SHRM-CP
      • SHRM-SCP
      • Which Certification is Best for Me
      • Certification FAQs
    • Prepare for the Exam

      Give yourself the best chance to pass your SHRM certification exam.

      • Exam Preparation
      • SHRM BASK
      • SHRM Learning System
      • Instructor-Led Learning
      • Self-Study
      • Study Aids & Add-ons
    • Recertification

      Recertify your SHRM Credentials before your end date!

      • Specialty Credentials
      • Qualifications
  • Topics & Tools
    Topics & Tools

    Stay up to date with workplace news and leverage our vast library of resources to streamline day-to-day HR tasks.

    The white house in washington, dc.
    Executive Order Impact Zone

    Do not abandon, but evaluate and evolve. It is about legal, equal opportunity for all.

    • News & Trends

      Follow breaking news and emerging workplace trends.

      Legal & Compliance

      Stay informed on workplace legal updates and their impacts.

      From the Workplace

      Explore diverse perspectives from your peers on today's workplaces.

      Flagships

      Get curated collections of podcasts, videos, articles, and more produced by SHRM.

    • HR Topics
      • AI in the Workplace
      • Civility at Work
      • Compensation & Benefits
      • Inclusion & Diversity
      • Talent Acquisition
      • Workplace Technology
      • Workplace Violence Prevention
      SEE ALL
      SHRM Research
    • Tools & Samples

      Access member resources and tools to streamline HR tasks.

      • Forms & Checklists
      • How-To Guides
      • Interactive Tools
      • Job Descriptions
      • Policies
      • Toolkits
      SEE ALL
      Ask an Advisor
  • Events & Education
    Events & Education

    SHRM25 in San Diego, June 29 - July 2, 2025
    Join us for SHRM25 in San Diego

    Register for the World’s Largest HR Conference being held on June 29 - July 2, 2025

    • Events
      • SHRM25
      • The AI+HI Project 2025
      • INCLUSION 2025
      • Talent 2026
      • Linkage Institute 2025
      SEE ALL
      Webinars
    • Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

      Specialty Credentials

      Demonstrate targeted competence and enhance credibility among peers and employers.

      Qualifications

      Gain a deeper understanding and develop critical skills.

    • Team Training & Development

      Customized training programs unique to your organization’s needs.

  • Business Solutions
  • Advocacy
    Advocacy

    Make your voice heard on public policy issues impacting the workplace.

    Advocacy
    SHRM's President & CEO testifies to Congress on "The State of American Education"
    • Policy Areas
      • Workforce Development
      • Workplace Inclusion
      • Workplace Flexibility & Leave
      • Workplace Governance
      • Workplace Health Care
      • Workplace Immigration
      State Affairs

      SHRM advances policy solutions in state legislatures nationwide.

      Global Policy

      SHRM is the go-to for global HR leaders and businesses on workplace matters.

    • Advocacy Team (A-Team)

      SHRM’s A-Team is a key member benefit, giving you the tools, insights, and opportunities to shape workplace policy and drive real impact.

      Take Action

      Urge lawmakers to support policies that create lasting, positive change.

      Advocacy & Legislative Resources

      Access SHRM’s curated policy materials and content.

    • SHRM-Led Coalitions
      • Generation Cares
      • The Section 127 Coalition
      • Learn More & Partner with SHRM Government Affairs
  • Community
    Community

    Woman raising hand in group
    Find a SHRM Chapter

    Easily find a local professional or student chapter in your area.

    • Chapters

      Find local connections from over 607 chapters and state councils and create your personalized HR network.

      SHRM Connect

      Post polls, get crowdsourced answers to your questions and network with other HR professionals online.

      SHRM Northern California

      Join SHRM members in the greater San Francisco Bay area for local events and networking.

    • Membership Councils

      Learn about SHRM's five regional councils and the Membership Advisory Council (MAC).

      • Membership Advisory Council
      • Regional Councils
    • Volunteers

      Learn about volunteer opportunities with SHRM.

      • Volunteer Leader Resource Center
Close
  • Membership
  • Certification
    back
    Certification
    Smiling asian student studying in library with laptop books doing online research for coursework, making notes for essay homework assignment, online education e-learning concept
    Get Certified!

    Be recognized as an HR leader with your SHRM-CP or SHRM-SCP credential.

    • How to Get Certified

      Demonstrate your ability to apply HR principles to real-life situations. No other HR certification compares.

      • How to Get Certified
      • Eligibility Criteria
      • Exam Details and Fees
      • SHRM-CP
      • SHRM-SCP
      • Which Certification is Best for Me
      • Certification FAQs
    • Prepare for the Exam

      Give yourself the best chance to pass your SHRM certification exam.

      • Exam Preparation
      • SHRM BASK
      • SHRM Learning System
      • Instructor-Led Learning
      • Self-Study
      • Study Aids & Add-ons
    • Recertification

      Recertify your SHRM Credentials before your end date!

      • Specialty Credentials
      • Qualifications
  • Topics & Tools
    back
    Topics & Tools

    Stay up to date with workplace news and leverage our vast library of resources to streamline day-to-day HR tasks.

    The white house in washington, dc.
    Executive Order Impact Zone

    Do not abandon, but evaluate and evolve. It is about legal, equal opportunity for all.

    • News & Trends

      Follow breaking news and emerging workplace trends.

      Legal & Compliance

      Stay informed on workplace legal updates and their impacts.

      From the Workplace

      Explore diverse perspectives from your peers on today's workplaces.

      Flagships

      Get curated collections of podcasts, videos, articles, and more produced by SHRM.

    • HR Topics
      • AI in the Workplace
      • Civility at Work
      • Compensation & Benefits
      • Inclusion & Diversity
      • Talent Acquisition
      • Workplace Technology
      • Workplace Violence Prevention
      SEE ALL
      SHRM Research
    • Tools & Samples

      Access member resources and tools to streamline HR tasks.

      • Forms & Checklists
      • How-To Guides
      • Interactive Tools
      • Job Descriptions
      • Policies
      • Toolkits
      SEE ALL
      Ask an Advisor
  • Events & Education
    back
    Events & Education
    SHRM25 in San Diego, June 29 - July 2, 2025
    Join us for SHRM25 in San Diego

    Register for the World’s Largest HR Conference being held on June 29 - July 2, 2025

    • Events
      • SHRM25
      • The AI+HI Project 2025
      • INCLUSION 2025
      • Talent 2026
      • Linkage Institute 2025
      SEE ALL
      Webinars
    • Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

      Specialty Credentials

      Demonstrate targeted competence and enhance credibility among peers and employers.

      Qualifications

      Gain a deeper understanding and develop critical skills.

    • Team Training & Development

      Customized training programs unique to your organization’s needs.

  • Business Solutions
  • Advocacy
    back
    Advocacy

    Make your voice heard on public policy issues impacting the workplace.

    Advocacy
    SHRM's President & CEO testifies to Congress on "The State of American Education"
    • Policy Areas
      • Workforce Development
      • Workplace Inclusion
      • Workplace Flexibility & Leave
      • Workplace Governance
      • Workplace Health Care
      • Workplace Immigration
      State Affairs

      SHRM advances policy solutions in state legislatures nationwide.

      Global Policy

      SHRM is the go-to for global HR leaders and businesses on workplace matters.

    • Advocacy Team (A-Team)

      SHRM’s A-Team is a key member benefit, giving you the tools, insights, and opportunities to shape workplace policy and drive real impact.

      Take Action

      Urge lawmakers to support policies that create lasting, positive change.

      Advocacy & Legislative Resources

      Access SHRM’s curated policy materials and content.

    • SHRM-Led Coalitions
      • Generation Cares
      • The Section 127 Coalition
      • Learn More & Partner with SHRM Government Affairs
  • Community
    back
    Community
    Woman raising hand in group
    Find a SHRM Chapter

    Easily find a local professional or student chapter in your area.

    • Chapters

      Find local connections from over 607 chapters and state councils and create your personalized HR network.

      SHRM Connect

      Post polls, get crowdsourced answers to your questions and network with other HR professionals online.

      SHRM Northern California

      Join SHRM members in the greater San Francisco Bay area for local events and networking.

    • Membership Councils

      Learn about SHRM's five regional councils and the Membership Advisory Council (MAC).

      • Membership Advisory Council
      • Regional Councils
    • Volunteers

      Learn about volunteer opportunities with SHRM.

      • Volunteer Leader Resource Center
Join Today
Renew
Rejoin Now
Renew
  • Store
    • Global
    • India
    • MENA
  • About
  • Book a Speaker
  • Foundation
  • Executive network
  • CEO Circle
  • Enterprise Solutions
  • Linkage Logo
SHRM
Sign In
  • Account
    • My Account
    • Logout
Close

  1. Topics & Tools
  2. Workplace News & Trends
  3. HR Magazine
  4. Housing Crunch Elevates HR's Role
Share
  • Linked In
  • Facebook
  • Twitter
  • Email

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus convallis sem tellus, vitae egestas felis vestibule ut.


Error message details.

Copy button
Reuse Permissions

Request permission to republish or redistribute SHRM content and materials.


Learn More
News

Housing Crunch Elevates HR's Role

In their quest for top talent, HR leaders are working to make real estate more affordable and partnering with communities to improve whole neighborhoods.

April 17, 2018 | Tam Harbert



Introduction

Location, location, location. It's an old saw about real estate. Today, it also applies to talent acquisition and retention.

Rising costs and a limited supply of housing in many areas of the U.S. are making affordability a big factor in recruitment strategies and corporate expansions.

For years, Millennials have flocked to urban centers, lured by the promise of good jobs and an attractive lifestyle. From 2012 to 2016, the number of 25- to 34-year-olds with four-year degrees living in large cities grew nearly five times faster than the growth in the overall population (19 percent versus 4 percent), according to City Observatory, a Portland, Ore.-based think tank.

​Some of the most popular locales are showing signs of stress, and so are the workers who live there. In a recent survey of San Francisco-area residents, some 40 percent of respondents overall and 46 percent of Millennial respondents said they were considering moving because of a lack of affordable real estate, growing traffic congestion and generally high living costs, according to the Bay Area Council, a business-backed advocacy group. In the Boston area, more than 72 percent of HR professionals said it had become "extremely or somewhat difficult" to recruit and retain talent, according to the results of a 2017 survey of employers by Northeastern University and the Massachusetts Housing Partnership. More than 67 percent said home prices and rental costs have affected their ability to recruit qualified candidates in Beantown.

"Affordable housing is absolutely coming to the forefront," says Sheryl Hopkins, senior vice president of HR at relocation consulting firm Runzheimer in the Milwaukee area. "It can really hinder your ability to get the quality and quantity of talent you need. It's a concern to both employers and the cities that are trying to attract companies."

The housing crunch's impact on recruitment has elevated the HR function in organizations nationwide. "The location decision of fast-growing companies is overwhelmingly dictated now by the HR department," says Joe Cortright, City Observatory's director. "They are focusing on places that either already have a pool of smart young people or that are attractive enough [for it] to be relatively easy to recruit people from other places."

So HR is playing a bigger role not just in devising new ways to lure employees to high-cost cities but also in deciding where to expand or relocate. It is taking a fresh look at revitalized, less expensive metropolitan areas whose leaders are looking to attract businesses. In some cases, HR is partnering with local governments to help renew aging city neighborhoods.

The cost of living in cities across the country has always varied widely, but "the disparity from one place to another has become greater," says Brian Kropp, HR practice leader in Arlington, Va., for Gartner, a Connecticut-based research and advisory firm. "So there's more of an onus on employers to balance the scales."

Downtown Revivals

​While plenty of young people are still moving to expensive hot spots, some older industrial and "fly-over" cities are attracting businesses because of their relatively low costs. Detroit, for example, is experiencing a renaissance of its urban core. In fact, that city's gain in educated young adults led the country, with a 60 percent increase from 2012 to 2016, according to City Observatory. The Motor City was followed by Hartford, Conn., at 58 percent and Orlando, Fla., at 56 percent. "No doubt, there are a significant number of young people moving to the downtowns of cities like Detroit," Cortright says, although he points out that such growth is from a low base.

Revived business districts and reasonable home prices appeal to older Millennials, too. While 20-somethings may be willing to share tight spaces with roommates in order to live in a cool city, those in their 30s often have different priorities. "As they build their career, get married and have a family, they start thinking about buying a home," says Cheryl Young, senior economist at real estate website Trulia, based in San Francisco. If they reside in an expensive area, they'll pay an even higher premium if they want to be in a good school district. In San Francisco and San Mateo County, Calif., for example, the median price of a home is $1.3 million. Even a "starter home" is $800,000.

The Texas Migration

​One of the biggest ongoing U.S. migration trends is from Silicon Valley to Texas. Census data show that 250,000 people are moving out of their home states each year, mostly to "lower-cost-of-living red states," says Matt Regan, senior vice president of government relations at the Bay Area Council. And 25 percent of them are going to Texas.

Businesses are relocating there, too. Jamba Juice, an iconic Silicon Valley company, moved to Frisco, Texas. Google, Apple, Amazon, Dropbox and Oracle opened offices or facilities in Austin. The Dallas-Fort Worth area, where starter homes cost $140,000, is particularly popular with corporations from a range of industries. At least 72 major employers have moved there since 2010. Toyota, Liberty Mutual, JPMorgan Chase and others have made a home in Collin County, north of Dallas.

Indeed, companies seem to be spreading the wealth, geographically speaking. They have started opening satellite offices in more-affordable areas, Young says. Business leaders are giving more weight to cost of living when choosing an area for expansion because it is often hard to attract employees to pricey places. In some cases, they are moving functions that require more-general skills to less expensive regions or establishing offices in cities where they'll be more able to find particular in-demand skills. For example, Google and other tech companies have opened offices in Pittsburgh to be near Carnegie Mellon University, a top institution for robotics and artificial intelligence.

[SHRM members-only toolkit: Managing Employee Relocation]

Making Living Affordable

46 percent

Some employers are increasing lump-sum payments to help current workers relocate or to lure promising candidates to high-cost areas, Hopkins says. Rather than simply offering to cover the expenses of a move, for example, HR leaders are comparing the cost of living between the old and new locales and making up the difference. "Now a company really makes an apples-to-apples comparison of how to make this employee whole," she says.

HR professionals are also starting to provide "wraparound services" to more people. Such packages "provide a whole set of additional services to help employees become more engaged in their new communities," Kropp says. For example, a company might offer workers assistance with finding the right neighborhood and school district, a perk that used to be reserved for C-suite executives. "Now we're seeing companies trying to push those services down in the organization," he says.

46 percent

HR teams at some organizations—especially medical and academic institutions—offer to help staff members buy homes. San Mateo County Community College was losing faculty because housing was so expensive, so leaders at the college arranged for the building of rental properties on its tax-exempt land and offered units to faculty at below-market rates. The catch: Renters are required to put the money they save into escrow toward a down payment on a house, Regan says.

In Baltimore, more than 100 employers participate in a long-standing city program called "Live Near Your Work." Businesses and the local government provide funds to workers that can be used to purchase a home in Baltimore. University of Maryland, Baltimore, has a particularly generous benefit, offering employees up to $18,500 to put toward a down payment on a home and closing costs. Most awards available through the program are in the $2,000-$5,000 range.

72 percentJohns Hopkins University in Baltimore has participated for 20 years and has seen the program's popularity rise. The number of workers buying a home using the benefit rose from 52 in 2013 to 171 last year, according to Katie Walsh, community programs manager at the school.

"Live Near Your Work" is a great recruitment tool. "We get a very large number of applicants for this program each year, and a hefty number of them are new employees moving from out of state," she says. Fortunately for them, homes in Baltimore, unlike in Silicon Valley, are already affordable. (A starter home costs around $125,000, according to Trulia 2017 Q4 data.) So, while one goal of the benefit is encouraging staff to live close to campus, another is revitalizing city neighborhoods. The program applies only to certain areas near Johns Hopkins, but a wide variety of housing is available there, Walsh says.

More Employer Involvement

​Affordable-housing advocates say more business leaders should get involved in this work. "Employers are terrific spokespeople," says Robin Snyderman, principal of housing consultancy BRicK Partners LLC, based in the Chicago area. "Housing decisions are made at the local level, so having local business leaders, local employees, stepping up and speaking about their needs can change the tone of discussions," she says. "When employers get involved at that level, things can really change."

Amazon's HQ2 competition demonstrates the influence companies can have. The winning city will serve as the company's second headquarters and home to 50,000 workers and their families. Adequate, reasonably priced real estate and good transportation are among the top considerations in selecting a location, and local governments have promised infrastructure improvements and other incentives with their bids.

Consider Plano, Texas. "We're just starting a task force made up of HR people from local companies," says Sally Bane, executive director of economic development. "We're bringing them together to help us understand what we can do to help them in their recruiting." With the influx of so many new employers to the county, it has become more congested and home prices have risen substantially. The task force will begin by discussing challenges and potential solutions as the region changes.

​But Plano has several advantages, Bane says. First, it has diverse housing available at a range of prices, so workers of various salary levels can afford to live there. And the city is part of the Dallas Area Rapid Transit system, so people don't have to drive everywhere. "We think transportation is going to be more and more important as we continue to add to the population around Dallas-Fort Worth," she says.

The New Company Town

​Back in Silicon Valley, tech giants have been running their own bus systems for years. Now a couple of them are building their own housing. Last summer, Google parent company Alphabet, based in Mountain View, Calif., ordered 300 apartment units from a modular home builder called Factory OS as a short-term solution to the shortage for employees.

Longer term, both Google and Facebook are moving toward what might be considered new versions of the old company town in California. In July of last year, Facebook announced plans to redevelop part of Menlo Park into the Willow Campus, which would include 1,500 units of housing as well as office and retail space. And in December, the Mountain View City Council approved Google's North Bayshore project, which is to include 10,000 new homes as well as offices and retail space.

Although developments like these are unique to the two Silicon Valley heavyweights, tech companies in other parts of the world are also building employee housing, Kropp notes. In 2017, e-commerce giant Alibaba began building 380 apartments on its campus in Hangzhou, China, and was holding a lottery among workers for options to buy units at two-thirds the market price, according to the Financial Times.

​Meanwhile, some cities that used to be affordable may become less attractive as more businesses move there. "Ten years ago, you could locate in the Dallas area and all your employees would have access to homes they could afford, with great schools, within a 30-minute commute," says Torrey Littlejohn, a senior vice president at real estate company Jones Lang LaSalle who is based in Dallas-Fort Worth. Now traffic has increased and housing prices have shot up. "It may not be so affordable anymore," she observes. Increasingly, HR leaders are stepping up for their employees to remedy that. 


Tam Harbert is a freelance technology and business reporter based in the Washington, D.C., area.

Illustration by Mari Adams for HR Magazine.


Was this article useful? SHRM offers thousands of tools, templates and other exclusive member benefits, including compliance updates, sample policies, HR expert advice, education discounts, a growing online member community and much more. Join/Renew Now and let SHRM help you work smarter. 

Benefits
Business Acumen
Talent Acquisition

Related Articles

Kelly Dobbs Bunting speaks onstage at SHRM24
(opens in a new tab)
News
Why AI+HI Is Essential to Compliance

HR must always include human intelligence and oversight of AI in decision-making in hiring and firing, a legal expert said at SHRM24. She added that HR can ensure compliance by meeting the strictest AI standards, which will be in Colorado’s upcoming AI law.

(opens in a new tab)
News
A 4-Day Workweek? AI-Fueled Efficiencies Could Make It Happen

The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.

(opens in a new tab)
News
How One Company Uses Digital Tools to Boost Employee Well-Being

Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.

HR Daily Newsletter

Stay up to date with the latest HR news, trends, and expert advice each business day.

Success title

Success caption

Manage Subscriptions
  • About SHRM
  • Careers at SHRM
  • Press Room
  • Contact SHRM
  • Book a SHRM Executive Speaker
  • Advertise with Us
  • Partner with Us
  • Copyright & Permissions
  • Post a Job
  • Find an HR Job
Follow Us
  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
  • YouTube
  • SHRM Newsletters
  • Ask An Advisor

© 2025 SHRM. All Rights Reserved

SHRM provides content as a service to its readers and members. It does not offer legal advice, and cannot guarantee the accuracy or suitability of its content for a particular purpose. Disclaimer


  1. Privacy Policy

  2. Terms of Use

  3. Accessibility

Join SHRM for Exclusive Access to Member Content

SHRM Members enjoy unlimited access to articles and exclusive member resources.

Already a member?
Free Article
Limit Reached

Get unlimited access to articles and member-exclusive resources.

You've reached the limit of 1 free article this month. Join to access unlimited articles and member-only resources.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join the Executive Network and enjoy unlimited content.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join and enjoy unlimited access to SHRM Executive Network Content.

Already a member?
Unlock Your Career with SHRM Membership

Please enjoy this free resource! Join SHRM for unlimited access to exclusive articles and tools.

Already a member?

Your membership is almost expired! Renew today for unlimited access to member content.

Renew now

Your membership has expired. Renew today for unlimited access to member content.

Renew Now

Your Executive Network membership is nearing its expiration. Renew now to maintain access.

Renew Now

Your membership has expired. Renew your Executive Network benefits today.

Renew Now