Why ‘Buying the Motel 6’ isn’t a Housing Strategy—It’s a Headache

A Well-Intentioned Fix—That Creates New Problems.

The shortage of affordable housing is a long-standing challenge across the U.S. Rising housing costs and low inventory are reshaping how Americans make career and life decisions. For many, access to affordable housing is directly tied to job choices like relocation, in-office attendance, and long-term loyalty to their employer.

Across industries, employers are stepping up to address the growing challenges of housing affordability faced by their workforce. With few affordable options available and talent increasingly difficult to retain, it’s no surprise that some organizations are opting to buy or lease housing directly.

The logic is clear: control the inventory, offer it to staff, and maintain critical roles. Whether it involves purchasing a nearby motel, entering a long-term lease, or building a few units, this approach often stems from a place of genuine care and urgency.

However, in practice, it rarely achieves the results employers hope for.

Owning or managing property brings a variety of new responsibilities—from maintenance and operations to handling interpersonal conflicts and navigating employee selection criteria. It shifts from being a benefit to becoming a burden.

Real Estate Management Is Not a Core Business Function

We hear it every day, says Jerryck Murrey, CEO of Annum, “I didn’t become a CEO, CHRO, Hospital President, School Superintendent, etc. to become a landlord.”

When employers acquire or manage housing directly, they take on a second business: real estate. And that comes with a steep learning curve, added costs, and significant liability.

Common issues include:

• Time and staffing demands for property maintenance and management, also known as the “no hot water and clogged toilet” problem

• Friction around who is awarded housing or who has to leave their home

• Interpersonal issues between coworkers living in close quarters

• Perception of favoritism, especially in small or selective programs

• Administrative complexity and unexpected HR, regulatory, or legal exposure

In short, you're now balancing the role of employer and landlord—two roles that don’t always align.

“Buying property to house employees feels like control, but it creates more chaos,” says Jerryck. “You end up managing plumbing issues, interpersonal dynamics, and a second business you never wanted. And you still miss the needs of the majority of your workforce.”

Limited Inventory, Limited Reach

Even when it works smoothly, employer-owned housing can only go so far. A dozen apartments or hotel rooms may help a handful of employees, but housing challenges span much broader than that.

This mismatch between investment and reach represents one of the biggest pitfalls of owning real estate. Employers may spend millions creating units that ultimately serve only a small percentage of their workforce. Moreover, those who do receive housing often face restrictions on location, family size, or lease terms—limiting flexibility and, in some cases, dignity.

Meanwhile, the remaining workforce lacks support, leaving leadership to wonder why turnover hasn’t improved more significantly.

A Hidden Problem: Not Knowing What Employees Need

One reason employers turn to real estate is that they lack clear data about what their employees actually need. In the absence of insight, purchasing property feels like taking action.

Housing challenges vary widely. They differ significantly based on income, life stage, household size, and geography. Some employees are looking to rent their first apartment. Others need to move closer to work, stabilize after a life event, or find space for a growing family. Some are ready to buy a home but can’t access the funds.

The traditional employer-owned model cannot adapt to meet this range of needs. Personalized support can.

“Housing isn’t just about having a roof over your head—it’s about agency, choice, and stability,” says Jonathan Murray, CMO of Annum. “That looks different for every employee. Personalization allows organizations to meet people where they are, and help them build the kind of home that meets their needs, not just shuffle them into what happens to be available.”

Annum starts each engagement with an employee housing assessment — not just a market study, but a method to uncover the hidden challenges and trends within an employee population. These insights are often unseen by employers, and employees might not feel comfortable sharing them directly with their managers or HR teams.

Uncovering this information is critical because you can’t design a solution for needs you can’t see.

The Case for Flexibility and Scale

The value of flexible support isn’t just philosophical—it’s financial.

Rather than investing millions in a limited number of fixed units, organizations can utilize mission-aligned capital and support to offer tailored, scalable housing assistance that benefits a larger segment of their workforce. Solutions may include:

• Rent assistance or support programs

• Lease guarantees to help workers qualify for housing

• Move-in support and emergency funds

• Down payment assistance or homebuyer education

• Renovation support to help families safely stay in place

• and many more……

  
  

These tools are cost-effective, deeply personal, and able to flex as employees’ needs change over time.

“A personalized model is more cost-effective and impactful,” Jerryck adds. “By listening to employees and focusing on real-world housing needs, employers can reduce turnover, improve morale, and avoid becoming a housing manager in the process.”

Diversification, Not Abandonment

To be clear: this isn’t an argument against establishing dedicated housing stock for your workforce.

In some cases, maintaining a set of units can be part of a thoughtful housing strategy—particularly when employers aim to support new hires, out-of-state transfers, or seasonal staff. However, it shouldn’t be the sole strategy.

A successful approach to workforce housing includes a range of support options — owned units for specific high-need populations and flexible, portable solutions catering to the broader employee base. This type of diversification enhances reach, minimizes risk, and adjusts to real-world conditions.

A Roadmap for Better Housing Support

Employers don’t have to choose between doing nothing and building or buying property. There’s a middle path—one that’s lighter on internal resources, lower in cost, and higher in impact.

At Annum, we partner with employers, health systems, and other organizations to develop scalable housing support programs designed to meet their specific workforce needs. This begins with listening—through data, through conversations, and through a human-centered process that honors employee dignity and privacy.

We’re here to simplify—not complicate—your efforts.

Final Thought: Step Back Before You Build, Buy, or Master Lease.

The instinct to act is the right one. Housing challenges are real, and the consequences of inaction are serious.

But sometimes, the fastest-looking fix turns out to be the most limiting. Before buying or building, ask:

• Who are we trying to help?

• What do they actually need?

• And is there a more efficient way to meet that need?

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In most cases, there is. And it doesn’t involve becoming a landlord.

Have questions or want help planning your workforce housing roadmap? We’d be happy to talk. Reach out to start the conversation.