Present-day housing insecurities are among the leading concerns of the economy. With the addition of an unexpected pandemic, the number of people experiencing housing issues has grown. According to an affordable housing gap analysis released in March 2020 by the National Low Income Housing Coalition, “Only 36 affordable and available homes exist for every 100 extremely low-income renter households.”
These numbers are a problem.
Housing instability has a lasting impact. It causes adverse effects to the individuals experiencing firsthand, but it acts as a domino effect. Studies have linked higher stress levels among parents and lower educational performance among children who experience inadequate or subpar housing.
Affordable housing ensures the proper balance of housing expenses and other necessary living costs. It is widely acknowledged that a healthy rent-to-income ratio is 30 percent. Reportedly 46 percent of American households spent more than 30% of their income on rent in 2017. Despite the current pandemic, the housing industry has seen an 11.4% increase in rental rates, along with the housing moratorium coming to an end. As a result, we should expect the gap to widen.
The imbalance of wages and housing expenses collectively serves as a pressing reason for more affordable housing. The direct effects include failed community building, mental and physical health-related problems, and a poor economy.
How Does Affordable Housing Tie In With Community Empowerment?
Solid and suitable housing and shelter is a nonnegotiable necessity that is the foundation of a healthy family and safe community.
Studies have directly linked stable housing to improved stress levels among adults and children, expressing psychological problems experienced during childhood can directly affect adult financial production and lead to lifelong mental illness.
Healthy individuals connect directly to the economy, as it ties in with successful job creation and retention, which filters into positive economic development. The inability to afford proper housing tends to magnify health disparities, compounding already distressing conditions all which are adverse agents for community building.
When a community of people has access to adequate housing, it creates a thriving society. A flourishing community will yield successful individuals who continue to build on a solid foundation, replicating accordingly.
How Can You Get Involved With Making A Difference In The Affordable Housing Sector?
Real estate for impact is a balance of investing with a purpose and diversifying your investment portfolio for a return. Funding for a specific positive influence in society or the environment is known as impact investing.
Impact investing has historically been shown to outperform a downturned market. There is always a demand for the greater good, which means impact investments stand to thrive in any market.
We are always interested in speaking with those interested in using their capital for a positive impact. Are you interested in joining Evan Holladay to use your investments to help further affordable housing efforts? Add a market recession-resistant opportunity to your portfolio, set up a call with our investor relations team to see if it’s a good fit: https://holladayventures.com/investors/.
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