The Role of Affordable Housing in Creating Jobs and Stimulating Local Economic Development
Households with modest means need safe, suitable housing that they can afford. When housing is affordable, low- and moderate-income families can put nutritious food on the table, receive necessary medical care, and provide reliable daycare for their children. Research has shown that the stability of an affordable mortgage or rent can have profound effects on childhood development and school performance (Lubell and Brennan 2007) and can improve health outcomes for families and individuals (Lubell, Crain, and Cohen 2007).
However, the benefits of affordable housing extend beyond its occupants to the community at large. The research reviewed in this brief demonstrates that the development of affordable housing increases spending and employment in the surrounding economy, acts as an important source of revenue for local governments, and reduces the likelihood of foreclosure and its associated costs.
Without a sufficient supply of affordable housing, employers — and entire regional economies — can be at a competitive disadvantage because of their subsequent difficulty attracting and retaining workers. In addition to these proven linkages between affordable housing and economic development, this review also discusses several promising hypotheses that have not yet been as well researched but suggest ways in which affordable housing can foster local economic growth.
