New Data Quantifies Benefits of Employer-Assisted Housing - Metropolitan Planning Council

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New Data Quantifies Benefits of Employer-Assisted Housing

Analysis of Milwaukee hospital data shows that EAH participants are long-term, high-performing employees.

“Employer-assisted homeownership is a win-win,” said Northwestern Mutual Life CEO Ed Zore, who co-hosted an EAH informational session on May 22, 2008, with Milwaukee Mayor Tom Barrett, for local businesses. The Metropolitan Planning Council, Select Milwaukee,and National Housing Conference also made presentations.

Many employers offer employer-assisted housing (EAH) because they recognize its numerous benefits, including more productive employees, it serves as an innovative recruitment tool, and is a way to make a positive difference in the lives of their workers. New research by the Center for Housing Policy, released at this event, has quantified the success of employer-assisted housing by examining data provided by Aurora Health Care, which has offered employer-assisted housing since 1993.

Milwaukee-based Aurora Health Care provides $3,000 down payment assistance and homebuyer counseling (through the nonprofit Select Milwaukee) to employees who have worked for Aurora at least one year and are in good standing. Participants can purchase homes anywhere in the city of Milwaukee. Since 2000, 718 Aurora employees have received counseling and homebuyer assistance from Select Milwaukee. Of those, 206 employees have successfully purchased homes with employer assistance.

Analysis comparing the employees who have participated in the program with the overall body of Aurora employees has found that EAH participants are:

  1. Long-term employees, staying with the organization for an average of 14.7 years, compared with the majority of Aurora employees who stay less than 10 years.
  2. More likely to be younger than 35. With one-third of the workforce close to retirement, the hospital needs to retain younger employees.
  3. More likely to be minority than the overall employee base.
  4. Higher-performing, based on their annual performance reviews.
  5. Loyal: EAH participants have had lower turnover than other employees. In 2007, EAH participants’ turnover rate was 4.8 percent compared with 12.6 percent for Aurora’s metro-area employees overall.
  6. Benefit from homebuyer education services by accessing lower-priced homes and obtaining responsible financing.

Nina Garcia, a nurse with Aurora Health Care and program beneficiary, said, “I am so happy to own my home, thanks to the assistance provided by Aurora Health Care and Select Milwaukee’s services.”

For further information, visit the Aurora Value Proposition .

Visit the following online resources:

Contact Samantha DeKoven for information about starting an EAH program for your workforce.

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