Economists, housing policymakers, and city officials believe that the negative impact of a lack of affordable working housing doesn’t stop at low-income groups says Maxwell Drever. The high costs of renting and purchasing homes affect many people, such as companies or industries, local governments, neighborhoods, and even wealthy homeowners. The main reason behind this is that the people who need these accommodations form an integral part of society. They are the drivers of the country’s economic engine. Everyone depends on them for daily needs, whether it comes to safety and security, education, medical assistance, deliveries of goods and products, etc. Here are some concrete examples to show why this escalating housing crisis is everyone’s headache and not just the disadvantaged population.
One of the many reasons proffered against building more housing is that it puts additional strain on local amenities, such as traffic, but there is enough evidence to show this line of reasoning has its flaws. If people cannot afford to stay near their workplaces, they opt to move somewhere slightly distant where they are likely to afford accommodation and then commute into the city daily instead, points out Maxwell Drever. Additionally, when low-income families have to stay away from the desirable locations or city centers because of the upwardly mobile urbanites who indulge in high-priced properties,the traffic load doesn’t reduce. High-earning families will still travel in their vehicles than public transport. So, the scenario doesn’t change much.
Low consumer spending
Consumer spending forms a significant part of the US economic activity. Since people spend more on housing, they have significantly less money to spend on other things like eating at local restaurants or buying groceries. Shortage of affordable housing can hurt any region’s businesses and, consequently, the overall economy. According to Maxwell Drever, an ideal scenario calls for strengthening people’s spending power. By increasing the housing supply while reducing the rent or homeownership pricing. To be precise, more disposable income for households could lead to greater investments across communities. Boosting demand for goods and services throughout an entire region’s economy. It can also result in higher employment opportunities, which directly impacts economic growth.
Higher job vacancies
Many companies struggle to fill in job openings. They can’t find the right people, or they can’t find enough people. Sometimes people are keen to work at a company. But they move away because they live in a place where things are affordable. To tackle this situation, one must understand this economic divide between opening positions and job seekers. It generally causes slow growth for the area and, therefore, the business. A recent study cited an example of the zoning restrictions on apartments from 1964 to 2009. That affected the country’s economy by almost 36%. Hence, it proves that sorting out workforce housing needs can be the key to this ongoing or impending problem.
While workforce housing supply is still a challenge. Innovative solutions and forward-thinking can offer excellent results. Which not only would be favorable for the low to medium earning families but the entire ecosystem.