Most people, other than the beneficiaries, tend to look down on affordable housing. The general impression is that affordable housing development is not good for the community explains Maxwell Drever. Some of the typical reasons proffered include poor construction, more influx of less desirable elements into the society, and negative impact on public hygiene and crime rate. There is also an opinion that business does not thrive in an area with affordable housing. However, the reality is that affordable housing increases diversity in the community, boosts both local and big businesses, and the quality of construction is at par or sometimes better than construction pegged to the market rate. Some of the top economic benefits communities derive from affordable housing:
More Money in the Pocket to Spend
For most people living in rented accommodation, the monthly rent is usually the single largest expenditure. When living on the edge, making the payment on schedule month after month can be stressful. With affordable housing putting more money in their pocket for discretionary spending, people can spend more on essential things like food, healthcare, transport, and education. The ripple effect is seen in the neighborhood, with more shops, restaurants, and clinics opening up. Additionally, where residents get the benefit of high-quality services for nutrition, health, and financial decision-making, the impact is readily seen in the community, observes Maxwell Drever.
Increase in Hiring
The income generation potential of affordable housing development projects is significant. Every development project needs people to undertake the construction, supply the materials, and manage the process. Besides, leasing agents, property managers, security staff, and more get involve. However, direct employment is only the proverbial tip of the iceberg. The benefits trickle down to almost all local businesses that supply the workforce with different resources. Ranging from food, apparel, fuel, entertainment, dining, and more, which spark off more hiring to meet the additional demand. Even one affordable housing development project is enough to create strong local relationships, says Maxwell Drever.
Boost in Tax Income and Other Revenue for the Local Administration
However, according to one study, building just 100 units of affordable housing generates $2.2 million in sales. And different kinds of taxes like city fees, tolls, etc., for the local government. With the benefit accruing to the local municipality, affordable housing projects become attractive for cities and attract more funding. From first-hand experience in cities like Chicago and Washington D.C., with affordable housing becoming more popular among the low-to-middle income people for a living and raising families, cities get more encouraged to scout around for more development opportunities. It also gives scope to professionals interested in capitalizing on this opportunity. To perform the due diligence and partner with a not-for-profit developer.
Undertaking the development of affordable housing has multiple benefits extending beyond the direct ones. It is commonly observe that communities benefit from an increase in security as crime rates dip significantly. With new or renovated construction available to the residents in underserved areas. The quality of life in the local community witnesses a major jump. The residents, local businesses, and construction and investment companies benefit from affordable housing.