Let’s begin by debunking some misconceptions on the term “affordable housing”. Many people give affordable housing developments a negative stereotype, that involves low property values, and make neighbourhoods less appealing—This is no longer the case today with innovations in the manufacturing of beautiful modular homes and planning proper community layouts. Thus making living in these homes a top-choice for many people.
In reality, the lack of safe, affordable housing is costing Canadian municipalities in several dramatic ways. Municipalities and towns that fail to step up with affordable housing solutions drive out residents, lose potential workers, and discourage growth in their local economies. While those who already have safe and stable housing may not feel the true cost of poverty, the effects are real and can have a serious detriment on our communities.
High housing prices can slow down a local economy, leaving jobs unfilled and less spending power in a community. But, when affordable housing is readily available, more opportunities become available for people at all income levels. More money is available for spending in a community, and long-term change can begin to take root. Let’s take a look at some of the economic benefits of affordable housing.
More money spent in local communities
Maybe the most obvious economic benefit of affordable housing is the increase in discretionary spending. For most people, rent is the biggest and most important expense each month. When income loss threatens the ability to meet rent payments, the likelihood of spending money on anything other than the most basic needs harms the local economy. But when residents of affordable housing communities can make their rent payments, they’re able to spend more on local purchases—and go beyond the bare necessities to buy healthy food, and spend more at their nearby businesses.
Healthier population means a healthier economy
A person’s housing is a huge social determinant of their health. Among other factors like income and education, housing is a component that drastically influences a person’s physical and mental well-being. Poverty severely limits people’s options, which is why poverty is linked to a vast range of health problems, both acute and chronic in nature.
Most obvious is the quality of the housing itself. People in low-income housing that’s poorly constructed or maintained may be exposed to lead paint, water contamination, and a slew of other environmental risks that are far less likely for more affluent populations. These environmental threats lead to chronic health issues for children, families, and seniors, which come at enormous and preventable cost to both the residents and their greater communities.
The buildings themselves are not the only risks. When a person’s home is unaffordable, other critical health factors like healthy foods and active lifestyle become farther out of reach. But when people have access to quality affordable housing options, they are far less likely to face environmental threats, and far more likely to have enough income for healthy food options and self-care—ultimately helping them lower the risk of severe chronic health problems. The more people can spend on adequate healthcare and fresh food, the better and healthier the local economy becomes.
More affordable housing creates more job opportunities
Of course, there are also many long-term opportunities that come with affordable housing in local economies. The healthier an economy is, the more jobs it will need. One of the benefits of affordable housing is that it encourages improved mobility that ultimately creates more jobs for our municipalities. Most of all, affordable housing attracts a workforce for low-income employment.
Improved government infrastructure
With more residents able to pay property taxes, a local government is able to provide more for its citizens. How much can they really fund? A study from the National Association of Home Builders: “Building 100 affordable rental homes generates $11.7 million in local income, $2.2 million in taxes and other revenue for local governments, and 161 local jobs in the first year alone.” This increased revenue may mean improved infrastructure, more green space, and other elements of healthy cities that keep its residents healthy and safe.
Better opportunities for investing in the future
Another long-term economic benefit of affordable housing is the chance to decrease childhood poverty. Providing children with a better and more equitable path forward is one of these long-term ways to build economic growth and healthier societies. Equipping kids with tools for social mobility isn’t just a moral argument — it’s also proven to create economic growth for communities. It is estimated that for every dollar spent on reducing childhood poverty, the country would save at least $7 with respect to the economic costs of poverty.
A stable, affordable home is the foundation for everything else. It gives children the chance to establish healthy habits and focus on their goals and education. Generationally, this has massive impacts on educational achievement, economic output, and creating opportunities for residents to give back to their communities.