Amongst the various misconceptions regarding affordable housing, there is one common myth about affordable housing that states community of affordable housing will downgrade the economy and affects the business. This article will discuss the impact of affordable housing on the community and why the myth is extremely wrong says Maxwell Drever.
The ecosystem of the affordable housing options is based on builders, developers, property managers, architects, and the people who handle real estate finance and law. They will undoubtedly reap the benefits of the development of affordable housing. Do you know why? This is because affordable housing stays rented while most real estate properties come with a waiting list. Sometimes the rent is paid through the voucher system. Unlike luxurious properties where the rate of occupancy fluctuates as per the economic condition, the rental of affordable housing remains the same.
However, people who are eager to learn the functions of affordable housing in the community will be able to reap the best benefits. A potential investor who knows the profitability and importance of affordable housing will always invest to make profits. Here is how affordable housing can benefit the community.
Increased Spending Power
The people who have access to affordable housing will be able to spend their money. On other essential factors of life such as food, healthcare, clothes, etc.
Rent is undoubtedly the biggest expense for most lower and middle-income families. And the rent is the primary cause of becoming cost-burdened. When low and middle-income families realize the rent is not massive and they can pay the rent easily, they will have the freedom to spend their money on other aspects of life, suggested by Maxwell Drever. Apart from that, affordable housing options will also offer quality resident services. That would assist people with nutrition, healthcare, and financial decision-making options.
Those who want to invest in affordable housing that can help lower and middle-income families should have a great understanding of the community.
Preserving, building, and sustaining the affordable housing options require property managers, security staff, leasing agents, and many more. In other words, the developments of affordable housing will increase the vacancies in the employment sector.
This is just the beginning. While developing affordable housing, local businesses should provide. Essential resources such as fuel, food, and so much more, even the hiring. Smart and professional developers leverage these benefits of increased commerce to develop opportunities. So that they can provide more affordable housing for the employees. And attract many small and large businesses to the area. However, Maxwell Drever says they need to create a strong local relationship.
Increased Taxes and Other Revenues
It’s been stated that developing 110 affordable homes. It will generate more than $3 million in sales and other types of taxes. This step will increase the revenue of the local government from city fees, tolls, etc. As these benefits are leveraged by the local municipality, cities will support them more. That would ultimately help them fund more affordable housing.
Remember that the development of affordable housing across different regions of the United States will have long-lasting and stable social benefits. In the era of ESG and impact investing, these benefits should not be neglected.
Everyone who belongs to the affordable housing solutions will reap the benefits of its preservation and creation. Do you have any other questions? Comment below to let us know.