Affordable housing in the United States has been a perpetual crisis. There exists a massive shortage of affordable housing in our country, and the shortfall is estimated to be 7.2 million homes specifically for low-income families. Maxwell Drever says affordable housing, theoretically speaking, refers to real-estate properties offered on rent or sale for a price that is lower than their market value- generally, because of some local council or government scheme. Due to the shortage of safe and affordable housing, U.S. cities are often adversely impacted in many dramatic ways. Cities not capable of stepping up with proper and affordable housing solutions end up driving out residents, losing potential workers, and discouraging growth in their economies.
Maxwell Drever says that it pays to remember that exorbitant housing prices could retard a local economy, resulting in jobs unfilled and relatively lower spending power in specific communities. However, in the event, when affordable housing seems to be readily available, there will be numerous opportunities for people across all income levels. Communities will have more money or spending power, and soon long-term changes will gain momentum.
Affordable housing projects are generally, for specific groups like local residents or people earning less than the current national median wage. Maxwell Drever believes that there are infinite investment opportunities for real estate development, however; they are looking for high-rent luxury projects geared towards the top-bracket earners. It pays to remember that affordable housing projects could be fruitful and profitable in the future.
What Do You Mean By Affordable Housing?
Affordable housing schemes are design for making inexpensive homes available for individuals and groups who are unable to afford to buy or rent homes at the existing market rates. As per the government, affordable housing should necessarily be affordably rented, socially rented, and be intermediate housing provided to eligible or qualified households whose requirements are not fulfilled by the market.
Kinds of Affordable Housing
Affordable housing schemes are available in all sizes and shapes. Let us explore some of the more popular and bigger offerings.
- First Homes
- Shared Ownership
- Rent to Buy
- Starter Homes
- Affordable & Private Rented Housing
- Social Rented Housing
- Intermediate Rent
Merits of Affordable Housing
If you could have easy access to any affordable housing scheme, you may also get the opportunity to access many other affordable rents or get your first acquisition of property. Homeownership schemes like First Homes help in reducing the overpowering burden of purchasing a home by reducing the overall cost. Moreover, shared ownership schemes provide opportunities for people who would like to buy with smaller deposits.
· Local communities will get more spending power. Also, the economic benefit of opting for affordable housing is a boost in discretionary spending.
· Fewer evictions thanks to the availability of affordable housing. Evictions are known to trigger a vicious cycle of instability and uncertainty for families. It will also be having a ripple effect on their immediate communities. It has the potential of harming the economic and social well-being of a community.
It is a good idea to invest in affordable housing if you wish to boast a healthier population that implies a healthier economy. An individual’s housing is a vital determining factor of his or her health. Among other parameters such as education and income. Housing is a constituent that dramatically impacts an individual’s mental and physical well-being.