Affordable housing has always been one of the most popular housing models since it does not just help human beings thrive as individuals, but also helps communities rise up higher as a whole.
However, many negative stereotypes and general misconceptions around affordable housing also make it a source of scepticism for many people.
But an affordable housing architect, who has years of experience in the field can tell you why this model holds the capacity to change the economical conditions of a local community and change the world to be a better place.
Curious how? Here are the 6 ways affordable housing boosts the local economy.
Money gets spent on local communities
One of the biggest motivations behind affordable housing is to decrease the expenditure of the people on basic needs like housing. When the prices of basic needs are high, people start struggling to make their ends meet. This leads to lower buying capacity since they don’t have enough monetary resources left to spend on recreational activities.
When housing is made to be affordable, the members of the community start being able to afford their basic needs like rent without struggling. Thus, they start spending more on other things and since they are living in the local community, there’s a good chance that the majority of the money will go to the local community businesses. This leads to a boost in the local economy since they are making enough profit.
Lower eviction rates
With costly housing, the eviction rates start going up. Since everyone is struggling to pay their rent and spending almost half of their salary on housing solutions, survival becomes pretty difficult.
Meanwhile, affordable housing can decrease the eviction rates significantly since the costs are so low that a majority of the community can afford it. The reduction in eviction rates ensures well-being and security for the people and thus the economy will also thrive in the local area.
People become healthier
The kind of house a person lives in hugely determines the condition of their health. Since healthier living conditions can provide better spaces for hygiene and growth, the person living in it will surely be healthier than a homeless individual, both physically and mentally.
A healthier human population naturally means a better and healthier economy. Especially, in a community where everyone is living peacefully, without suffering physically, mentally, or emotionally, everyone will have a naturally higher earning capacity. People will spend more on recreational activities and other luxuries causing an economic boom for the local businesses.
Increased job opportunities
Affordable housing in a local community will create more job opportunities during and after the construction phase. During the construction phase, people will get jobs since the contractors need skilled and unskilled workers. And after the construction, the housing centers will need to be staffed to keep manage things and keep them operational.
The increased number of job opportunities will help people become financially independent and improve their buying power. This will again contribute to the economy of the local community and help it grow rapidly.
The people who own houses also pay property taxes. Thus, when the housing is made affordable, more and more people start buying and owning houses. The more homeowners in the community, the more people start paying property taxes.
With such increment, the governing bodies get to collect more resources that can be allocated to building better infrastructure in the locality. Eventually, better government infrastructure in the locality starts helping local businesses thrive and positively affect the local economy.
Increased scopes for investment
Since affordable housing is affordable for pretty much everyone in a local community, the chances of someone ending up homeless become slim. With lower numbers of cases of homelessness, the rate of childhood poverty goes down too.
This majorly helps the children to grow up to become better and more productive adults since they get the right start in life. With better human resources and the lowest liability risks, the scopes for investment in that specific locality increases significantly leading to a better local economy.
Affordable housing takes off the financial load of having proper housing from the shoulders of people. Since the costs are low, most people start being able to afford their basic necessities and still have enough to spend on things like health care, luxury, entertainment, and recreation.
Such elevation in the living condition of people give rise to better human resources, boosts the economy, and strengthens the sense of community.
- About the Author
Alex Grigoryan is a Professional Home Improvement and Lifestyle Writer. He has been in the industry for over 6 years and has been writing for Chique Home Living since 2019. His work has been featured in prestigious blogs such as Spruce Home, Better Homes & Garden, and more.