When talking about the essential assets in a community, the things that pop up in the conversation include access to parks and open spaces, a strong work base, a high-quality educational system, and even a vibrant arts scene. More often than not, the idea of having an ample supply of affordable housing is kept as a side topic.
Conversations about low-cost housing are generally heard as a topic for the cost of taxpayers. Hence, this subjects is rarely taken into account when economic and fiscal benefits come into view. Even though affordable housing does involve important civic and social values, it’s still important to focus on its economic and fiscal impacts.
Enhances Residents’ Buying Power
When a community or neighborhood has affordable mortgage and rent, it can significantly increase the residual income for household members to have at their disposal. In some cases, it can even be more than $500 per month. Studies show that low and moderate-income households will generally spend their income on basic needs such as clothing, transportation, healthcare, and food. With low-cost housing options, local businesses can also stand to grow due to the enhanced buying power of nearby residents.
Improved Employee and Employer Appeal and Retention
Many employers report that the lack of low-cost housing makes it more difficult to garner new employees and maintain their current workforce. Studies show that more than 300 companies across the United States acknowledge the fact that an insufficient amount of low-cost housing options in the business’ proximity affected the businesses’ shortage of qualified employees. When looking at it from the perspective of an employer, the lack of affordable housing can put the local economy at a disadvantage as they lose a competitive edge. Aspiring employees, on the other hand, are also having difficulty in searching for housing options that are within the lines of their spending allowance, especially when they have to move because of their profession.
The Creation of More Jobs
It does stand with reason that rehabilitating or building low-cost houses can create jobs in the construction industry. Studies show that building about 100 affordable homes for families can lead to the creation of over 120 jobs on average. Furthermore, the longer these homes stay occupied, it will amass a ripple effect wherein it can support as many as 30 new jobs in a broad range of business sectors such as healthcare, retail, and even the local government.
The creation and investment of low-cost housing opportunities can bring a lot of positive benefits to the community. If you want to know more about affordable housing, you can check out bt-innovation.