Recent years have seen an uptick in hospital and health system workforce housing projects to address high housing costs that hinder recruitment and retention. In 2026, these initiatives are taking shape differently depending on each system’s size, region and resources.
Most recently, Beaufort (S.C.) Memorial is investing in a 14-unit development built with Woda Cooper Cos, the system said in a July 20 news release. Rather than building and owning the project outright, Beaufort Memorial is serving as a “mission-aligned financial partner,” with Woda Cooper handling leasing and property management, and employees get leasing priority under the arrangement.
Other systems are focused on philanthropy rather than system capital. At Newport Beach, Calif.-based Hoag Health, a workforce housing initiative at the Sun Family Campus in Irvine is being funded by a $30 million gift from philanthropists Ron and Sandi Simon, the system announced in February.
Smaller and rural systems are approaching the same need at a different scale. Hammond-Henry Hospital, a critical access hospital in Geneseo, Ill., is constructing two studio apartments for medical students and physicians covering temporary shifts, work it previously covered through hotel and rental costs, the hospital said in April. The project is supported by donations totaling more than $142,000.
Still others are folding housing into broader initiatives rather than standalone projects. Durham, N.C.-based Duke University Health System’s $203 million initiative, announced in March, includes raising local hiring from 69% to 80% for entry-level roles, doubling second-chance employment and increasing deposits with community development financial institutions to support affordable housing and homebuyer assistance, alongside other local hiring and spending commitments.
That is a shift from 2024 and 2025, when several systems put significant capital directly into new, system-affiliated units. Oak Bluffs, Mass.-based Martha’s Vineyard Hospital, part of Mass General Brigham, broke ground in August 2024 on a $38 million, 26-acre project with a 48-unit apartment complex plus duplexes and townhouses, funded through fundraising. Atlanta-based Emory Healthcare said in July 2025 it would renovate two century-old buildings into more than 50 rental apartments for staff whose pay falls within specific levels. Winston-Salem, N.C.-based Novant Health announced plans to develop 140 workforce housing units on Hilton Head Island, S.C., in January 2025. And in Waterbury, Conn., city officials moved to sell a former school property near Trinity Health’s St. Mary’s Hospital to a private developer to build housing for hospital staff.
These 2026 projects are unfolding amid broader financial pressure across the industry. HR 1 is expected to cut federal Medicaid spending by $90.9 billion in 2029 alone and by a projected $911 billion by 2034.
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