Investing in affordable housing fuels economic growth, job creation, and community development.
- According to a literature review by The Center for Housing Policy, the creation of affordable housing increases employment (direct jobs such as construction and indirect jobs such as suppliers and materials); increases revenue for local government (permits, fees, property taxes, sales tax); and increases consumer spending in the area once the homes are occupied (retail, grocery, etc.) (Center for Housing Policy, 2011; National Association of Home Builders, 2015).
- “HUD programs boost local economies, supporting hundreds of thousands of jobs each year. The Campaign for Housing and Community Development Funding (CHCDF) estimates that in FY2015, HUD investments supported 537,297 jobs. Of those jobs, 301,217 were directly supported by HUD programs, while 236,080 were supported indirectly.” Quoted from NLIHC, A Place to Call Home
- “HUD reports that for every $1 million spent through the program’s capital fund, 10.03 direct jobs and 8.86 indirect jobs are supported. For every $1 million spent through the program’s operating fund, 6.15 direct jobs and 4.54 indirect jobs are supported.” Quoted from NLIHC, A Place to Call Home
- Adequate availability of affordable housing in areas with productive job markets allows job seekers with varying levels of experience to live near employment and would lead to more diversity in local workforces (Bipartisan Policy Center, 2024).
Housing expenditures generate a significant return on investment.
- According to the Center for Community Change, every $1 in housing trust funds leverages $6.50 in private sector investment.
- An analysis by Civic Economics and HousingWorks Austin looked at the economic effect of affordable housing bonds issued by the City of Austin since 2013. They found that the $122 million in bonds had a total economic impact of $1.08 billion and supported 7,466 jobs with $609 million in labor income. Developments built using the bonds produce ongoing economic impacts of $101.3 million annually.
Source: Civic Economics and HousingWorks Austin
High housing costs limit family earning potential and hinder U.S. economic growth.
- “Housing is a huge part of every resident’s budget, and providing an environment in which residents can afford their housing means a more reliable, less stressed workforce; more money to be invested in local businesses; and a stronger tax base.” Quoted from National League of Cities, “Why Local Governments Should Make Housing Part of Their Economic Development Plans”
- A 2022 survey of mayors found that housing costs and rising cost of living were the top two local economic challenges that are top priorities for their city. 81% of survey respondents listed housing costs in their top two priorities (Bipartisan Policy Center, 2024).
- “A recent study found that the shortage of affordable housing in major metropolitan areas costs the American economy about $2 trillion a year in lower wages and productivity. The lack of affordable housing acts as a barrier to entry, preventing lower income households from moving to communities with more economic opportunities. Without the burden of higher housing costs, these families would be better able to move to areas with growing local economies where their wages and employment prospects may improve.” Quoted from NLIHC, A Place to Call Home
- “Researchers estimate that the growth in GDP between 1964 and 2009 would have been 13.5% higher if families had better access to affordable housing. This would have led to a $1.7 trillion increase in total income, or $8,775 in additional wages per worker. The lack of affordable housing prevents lower income households from moving to communities with more economic opportunities and makes it difficult for businesses to attract and retain the workers they need.” Quoted from NLIHC, A Place to Call Home