By Jose Torres
The United States is in the grip of a deepening housing crisis. Across the country, there is a shortage of 7.3 million rental homes that are both affordable and available to lower-income renters. While affordable housing initiatives and development are primarily geared toward addressing this gap, the impact of the shortage extends far beyond shelter.
Affordable housing doesn’t just provide stable, accessible homes, it is a powerful engine for economic growth and prosperity, fueling long-term job creation, supporting local businesses and strengthening stability.
A Powerful Job-Creation Cycle
Every affordable housing development launches a cycle of job creation and economic stimulation. Projects require construction crews, architects, engineers and project managers and generate ongoing employment opportunities in property operations and management in the early phases, followed by long-term employment in management, maintenance and resident services once homes are occupied.
The National Association of Home Builders estimates that building 100 units leads to the creation of 80 jobs from the direct and indirect effects of construction. These jobs pump money back into local economies, supporting small businesses and encouraging further investment.
Additionally, research shows that stable housing leads to improved workforce productivity and reduced job-place absenteeism. When residents are not burdened by housing instability, they’re more likely to stay employed and miss fewer days of work — a critical advantage for businesses and economies alike.
Supporting Local Business and Commerce
Affordable housing developments drive consumer spending and encourage local investment, ultimately acting as catalysts of economic activity and growth. This impact is seen primarily through two key results. The first is that new developments bring new residents to patronize nearby grocery stores, service providers and retailers. Secondly, when families aren’t overburdened by rent, they have more income to spend on local goods and services, creating a positive feedback loop of economic activity.
According to the National Low-Income Housing Coalition, a full-time worker earning the prevailing minimum wage who cannot afford a modest, two-bedroom apartment means this resident has little left to spend on basic needs. By redirecting dollars from unsustainable rent costs back into the economy, affordable housing not only supports families but also fuels growth, generates additional tax revenue and encourages public and private investment in the surrounding area.
A Source of Long-Term Stability
Affordable housing also delivers long-term stability for individuals and families. These developments often offer services and opportunities for individuals to improve their quality of life, such as programs centered around healthy eating, active living, interpersonal relationship building, physical and mental health and civic engagement. EAH Housing, for example, offers the “StayWell!” program, which is a property-wide service coordination effort focused on maximizing resident services programming and providing measurable positive health outcomes for residents, along with digital literacy training and scholarship opportunities. Often tailored with consideration to the unique dynamics of areas in which properties are located, these offerings ultimately empower residents to lead healthier lives while supporting their essential needs.
Additionally, affordable housing helps ensure that essential workers — one of the groups most affected by unattainable housing costs — can live in the neighborhoods in which they work. For teachers, healthcare providers, retail employees and other workers who provide essential services, access to an affordable place to live can mean the difference between staying in their current position or having to look elsewhere for work. With affordable housing in the picture, neighborhoods and cities can ultimately reduce turnover rates, ensuring both stability for workers and the staffing needed for organizations and businesses to remain open and accessible for all local residents.
The economic benefits of affordable housing developments are far-reaching, affecting individuals and strengthening neighborhoods and cities at all levels. The prioritization of affordable housing development and preservation can unlock widespread, long-term economic growth and prosperity.
Jose Torres is director of business development with San Rafael, California-based EAH Housing.