The Economic Benefits of Affordable Housing

500,000+ people experience homelessness each night. 75% of low-income families spend more than half of their income on rent. Over 19 million households in the United States have incomes low enough to qualify for housing assistance, yet only about 25% actually receive it. 

The statistics don’t lie -- families in the United States need help and they need help now. While affordable housing is one solution -- of many -- to the puzzle, it’s something that many families don’t have access to. That’s why it’s important now more than ever to increase awareness. 



In fact, there’s a shortage of about 7.2 million affordable housing units -- which means there are millions of people out there that need immediate assistance. If they don’t receive that support, they could face enormous consequences that will diminish their health and overall quality of life.

What Are the Economic Benefits of Affordable Housing?

It’s no secret that affordable housing can have a positive impact on a low-income family’s way of life, but not enough people are talking about the economic impact it can have on communities that need it the most. It creates a domino effect of positive change the more it’s implemented. 

Below, we’re going to detail some of the most prominent economic impacts affordable housing developments can have on local neighborhoods across the United States. 

Low-Income Families Have More Money & Spending Power

Most low-income families spend a majority of their monthly income on rent payments. With affordable housing, they can reduce their monthly rent payments and put that extra money towards more important things -- such as food, clothing, healthcare, and other essential items.



Of course, this also limits the amount of stress these families face by reducing their financial struggle. This is extremely important to maintaining mental health and goes a long way in improving their quality of life. Money spent on necessities will also boost the local economy.

Reducing Childhood Poverty & Fewer Evictions

The amount of children living in poverty is increasing at an alarming rate. Since children are our future, it’s important that we do everything possible to give them the life they deserve. With affordable housing, parents have the extra income to invest in their child’s livelihood and health.

It also creates a growing sense of housing stability, which is essential to providing a positive environment for the children to grow up in. It allows families to settle down and build a life that they can be proud of. From the moment they move in, they can finally have a sense of home. 

An Increase in Job Creation & Hiring

When you build affordable housing developments -- whether it’s new home construction or renovations to an existing home -- it helps create jobs in the local community. Some of the jobs are temporary (construction), while other jobs are more permanent (property management).

Of course, you also have to consider the number of jobs that come as a result of economic growth. The healthier the local economy, the more jobs that economy needs to survive. And when job creation and job hiring are thriving, so are the families that make up that community. 

Increased Taxes for Local Governments

Affordable housing also benefits the local government through increased property taxes and local income. When families are able to pay their property taxes, that money gets re-invested back into the community -- benefiting everyone and everything that makes up the community.

In fact, some studies estimate that just 100 affordable housing units can generate over $11 million in local income and over $2 million in property taxes in just 12 months. And that’s not even including the estimated 160 jobs that are created as a result, which helps everyone out!

More Green Space & Other Local Investments

Like we mentioned above, when local governments have more funds, they’re able to invest those funds back into the community -- which boosts the local economy in that area. These investments not only increase the quality of life in that area but provide more stability. 



For example, that could mean more green space (parks, cemeteries, gardens, etc.), education, libraries, community pools, and much more. Overall, these investments can spark new life and energy in a community, which boosts the morale of families and individuals alike.

Attracts New Local Businesses 

Since affordable housing gives low-income families more spending power, local businesses stand to benefit from this increased spending. Whether these families are buying more groceries, eating at restaurants, or going to the movies, businesses are seeing more profits. 

Not only will this help keep local businesses around, but it will attract new businesses to the area. The more businesses thrive in a specific area, the better that economy will do in the long run -- especially since this spurs further economic growth with an increase in job creation. 

Affordable Housing Initiatives Are Cheaper to Maintain

The final economic benefit that can’t be overlooked is the actual cost of affordable housing compared to the alternatives. Think about it -- without affordable housing, these families are likely to end up in a shelter, jail, prison, the hospital, or even a mental health facility. 

Some studies show that the cost of affordable housing is just over $33 per day (on average). Compared to the alternatives -- $40 for shelter, $92 for jail, $117 for prison, $540 for mental health facility, and $1,770 for the hospital -- it’s a much cheaper option and better in the long run.

How Is Old Glory Supporting Affordable Housing Units?

At Old Glory Housing, we take pride in our ability to give families and homes the fighting chance they deserve. Not only do we transform distressed properties into move-in-ready homes, but we help low-income families find affordable housing that meets their wants, needs, and desires. 

No matter what you’re going through in life or what situation you’re coming from, Old Glory Housing is ready to help. We’ll give you the peace of mind you need to push through life with a smile on your face -- which not only benefits you and your family but the local economy as well.



Contact us today to learn more about our services and how we can help a family in need!