When some opportunities of economic development that have higher chances of prosperity ring our minds, we probably think about major employers like corporate offices, factories, healthcare centers or universities. Although they are necessary for the growth of jobs as well as entire economic health, it’s necessary to put into consideration the usually overlooked sector which offers significant benefits of economic development to the community inexpensive housing. Affordable housing offers much more than physical or social merits to lucky enough folks able to live in safe, tidy and affordable homes – as claimed by multiple studies conducted in cities across the country.
New cost-friendly housing construction and programs responsible for the rehabilitation of existing housing resources to make them inexpensive create several job opportunities ranging from architects to contractors and other construction industry employees. Local companies that supply construction materials as well as other supplies greatly benefit from such product sales or services, they offer to building contractors. On the other hand, Local authorities benefit from increased income in form of fees for occupational licenses or net gains from offered jobs and services.
Cheap homes are obviously built on vacant, unused plots as they are more profitable when it comes to development thus increasing the property’s value. This, in turn, influences the increase in property taxes which flows to local and state governments as well as local school councils. Moreover, new or refurbished homes that are affordable usually increase the neighboring properties’ value and to some extent might stabilize marginal neighborhoods.
Affordable housing also offers economic benefits to the residents. This improves the living standards of folks who pay less from their wages for costs of housing as they can manage to spend more on other basic items inclusive of groceries, healthcare, and clothing. Besides, they can afford to save more in the event of emergencies or major expenses like paying for education or buying a car. This offers most of these households with a more stabilized economy as it’s easier to keep away from payment to paycheck life. They are less exposed to eviction or stress related to moving from place to place because they don’t meet the terms of renting or payments of houses.
Individuals living in affordable homes are usually more stable, long-term workers as they don’t have to move so frequently and find it difficult going to work daily. This makes businesses becomes more advantageous due to a stable population of employees: it reduces employee turnover as well as costs associated with training new employees. Moreover, it reduces the issues related to lack of dependability concerning whether an adequate number of workers will appear at work during their shifts.
Government policies that put more emphasis on affordable housing inclusive of programs that offer incentives for private developers to establish cheap housing (for instance, offering density bonuses or other regulatory relief if their projects involve several affordable housing) are essential. And if underutilized they will not only enhance economic development but also contribute to the general prosperity of the whole community.