Why Affordable Housing Is Important to the Economy
This year’s real estate market continued a trend of rising prices. The median home price reached a whopping all-time high of $316,000, and this trend is expected to continue, pricing lower-class and lower-middle-class families far out of the housing market. Rental property prices also continued to skyrocket, leaving the average minimum-wage worker even further behind. The rising cost of housing has become such a problem that cities and counties all over the country are scrambling to come up with solutions. They are realizing that affordable housing for working-class and middle-class citizens is important for several key reasons.
Stabilizes the Local Environment
When housing (both rental and purchase) is affordable to most strata of income, the local economy stabilizes. Workers in the lower and lower-middle-income classes don’t have to search for housing outside of cities where they work and don’t have to become involuntarily homeless. They can afford to rent or purchase locally, which contributes to the local cash flow of the community by providing taxable income. In turn, this reinforces the stability of the working environment, making it less susceptible to negative trends in employment.
Supports the Working and Middle Class
Affordable housing supports lower- and middle-income workers by providing them with a better emotional situation, encouraging higher levels of education and healthier living. Another benefit is a reduction in public service costs including job support, financial counseling and aid programs.
Encourages the Growth of Infrastructure
When citizens have access to affordable housing, employers are more willing to invest in jobs in a community. When this happens, the economy stabilizes and begins to grow, and this growth attracts investors like Steven Taylor Landlord, who invest in everything from businesses to city infrastructure developments or even additional housing, which perpetuates the growth cycle.
It is entirely possible to solve the problem of affordable housing with creative solutions if people will start working on them together with a real sense of urgency. The benefits are enormous and manifold and shouldn’t be ignored.