Closing the Income Gap Through Increased Housing Opportunities: How Affordable Housing Can Fuel Our Economy
Most of us view housing only as a place to eat, sleep, and interact with our family. While undoubtedly important, affordable and sustainable housing provides other not so obvious benefits, such as promoting physical and emotional wellbeing. One manifestation of this is that people who are able to afford housing are more inclined to be employed and be productive members of society. On the other hand, those who cannot afford rent or mortgage payments often struggle to maintain consistent employment, which affects their mental and physical health. This lack of sustainable housing, in turn, has a deleterious effect on the economy. Providing affordable housing fuels our economy and our growing society.
As Linda Tyler, the mayor of Pittsfield, Massachusetts, shares in this article for Habitat for Humanity, “A common theme that I hear is that we have inadequate housing for business expansion. If we want to get our arms around solving both of those problems, then housing is certainly part of the economy.” This is exactly right. When people have a place that they can afford to live in, they are more inclined to be empowered, secure employment, and have the opportunity to make meaningful contributions to the economy and society. Oftentimes, without cost-effective housing, individuals, and by extension, the economy, suffer. Another point worth mentioning that’s discussed in this article is income inequality. Professor Katherine O’Regan states, “As the cost of housing goes up in a community, people may not be able to afford to live there, so they move further out. Moving further away from hot markets may be stopping people from working in locations with higher wages.” By increasing the cost of housing, many capable workers are forced to leave and live elsewhere. This, in turn, affects local communities and economies.
One of the things that the pandemic has shown us is the value of working from home. Those who were lucky enough to keep their jobs or secure a job during the pandemic could work remotely, connect with their teams, and network. Affordable housing is key in situations where a home is necessary for work, especially amidst a crisis where wages are significantly decreasing. Think too of working parents whose children now need a stable home to attend school. The cyclical nature of poverty becomes clear in this situation.
When people can afford housing, they can focus more on their current job or finding a new job. Without the stressors that come with not being able to afford shelter, people can excel in their careers. As people continue to climb the ladder in their careers, their economic development increases as they get raises and gain more workforce experience. Especially as the work from home trend continues, people need affordable housing to indeed work from home.
It’s no doubt that affordable housing will increase the number of available employment opportunities for low-income families. Now, over 18 million Americans are spending more than half their income on housing expenses. What can we do now to close the gap and ensure our struggling communities have equal access to this vital necessity?
To see this principle in action, be sure to check out Seneca Communities and our work at senecacommunities.com