Impact of Affordable Housing on Families and Communities
Introduction
This report, created by Enterprise Community Partners, reviews the research on the impact of stable and affordable housing on families and communities. The report consolidates findings from various disciplines to provide a resource for understanding and communicating the broad effects of affordable housing. It emphasises that while the research cited is extensive, it represents a starting point for understanding the issue, and that new studies are constantly emerging.
Affordable Housing and Stability
A significant number of US households struggle with housing costs, with nearly 19 million paying over half their income on housing and hundreds of thousands experiencing homelessness. This lack of access to affordable housing creates instability for vulnerable families. Access to quality, affordable housing reduces the likelihood of frequent family moves. Research indicates that housing subsidies can significantly decrease the risk of homelessness for low-income families, with one study showing that families receiving housing vouchers were 74% less likely to experience homelessness. Moreover, homeless families placed in subsidized housing demonstrate greater stability and are less likely to return to shelters.
Economic Security
High housing costs leave low-income families with limited funds for essential expenses, forcing them to make difficult trade-offs. A Harvard study found that families spending over half their income on housing have, on average, only $565 to cover all other monthly expenses. This can lead to poorer health outcomes, disengagement from school, and emotional and mental health issues for children, as well as food insecurity. Affordable housing increases families’ discretionary income, allowing them to meet important needs and save for the future8. For example, families in affordable housing in New York City had double the discretionary income of those in high-cost housing. Affordably housed families also spend more on healthcare, food, and retirement savings than their cost-burdened peers.
Education
Housing instability has a detrimental impact on children’s education9. Homelessness or frequent moves can cause children to perform below their peers in school, increasing their risk of dropping out. Even a single move during elementary school can negatively affect a student’s math and reading scores. Furthermore, changing schools results in a decrease in academic achievement. Stable, affordable housing creates a more secure environment for children, thereby improving their educational outcomes. It also offers a platform for supplementary education programs, supporting access to educational resources.
Health
Housing instability, including high costs, poor quality housing and multiple moves, negatively affects both child and adult health. Children in unstable housing are more likely to experience poor health, low weight and developmental risks. High housing costs contribute to food insecurity among low-income families. Furthermore, frequent moves can increase the risk of depression in children. Adults who are stressed about their ability to pay rent are more likely to report mental distress and difficulty sleeping. Access to affordable housing reduces trade-offs between housing and healthcare costs, enabling families to allocate more funds to healthcare and insurance, and reducing the likelihood of forgoing doctor visits. Subsidized housing can also protect children from food insecurity and other health risks.
Healthy Housing and Asthma
Green improvements to affordable housing can improve health, particularly for children at risk of asthma. Exposure to allergens in the home increases the risk of asthma and hospitalisation. Green renovations, such as improved ventilation, can produce immediate health benefits. Studies show that green building and transit-oriented development strategies can lower exposure to pollutants and allergens and effectively reduce asthmatic symptoms in children. For example, children living in Breath-Easy Homes in Seattle experienced a significant increase in symptom-free days. Healthy housing contributes to better school performance by reducing asthma-related absences, which is a leading cause of school absences.
Energy Efficiency
Energy-efficient improvements can reduce the long-term operating costs of subsidized multifamily buildings. These improvements help stabilise the portfolios of affordable housing providers, preserve the affordable housing stock, and protect tenants from instability. A study showed that buildings implementing the Enterprise Green Communities Criteria can expect an average of $3,709 in utility savings per dwelling unit. Energy retrofits in multifamily buildings can result in significant fuel and electric savings. They can also lead to job creation, with approximately 10 jobs created for every $1 million invested.
Transportation Costs and Access
The combined costs of housing and transportation have risen dramatically, leaving families with less money for other necessities. Only 40% of communities nationwide are affordable when housing and transportation costs are considered together. Many cities lack well-planned transit access that links low-income communities with jobs. Affordable housing located near public mass transit can help low-income residents save money, access better jobs, and improve their health. Increased transit access can also improve quality of life by reducing commute time and costs.
Neighbourhood Quality and Seniors
Affordable housing contributes to economic impacts, such as increases in local purchasing power, job creation, and tax revenues. Studies show that affordable housing has a neutral or positive effect on surrounding property values. The number of homeless and unstably housed seniors is expected to grow. Quality affordable housing can improve the mental and physical health, quality of life and independence of low-income seniors. Affordably housed seniors can spend more on healthcare than their cost-burdened peers. Ageing in place is a more affordable option for seniors than moving to long-term care programs.
This report underscores the importance of affordable housing as a foundation for the stability and well-being of families and communities, highlighting the wide-ranging benefits that stem from ensuring access to quality, affordable homes.
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Impact of Affordable Housing on Families and …