Myth vs. Reality: Data-Driven Insights on Affordable Housing

Affordable housing is an integral part of communities across the country, helping nearly 7 million households and 13.28 million people find a safe and affordable place to live. These homes support a wide range of individuals, including retirees on fixed incomes, working families, veterans, people with disabilities, and more. 

Despite strong evidence of the value affordable homes provide, misconceptions persist about who lives in them, why individuals and families need assistance, and how affordable housing impacts neighborhoods. The reality is that affordable housing supports community well-being in many ways—from helping older adults age in place and providing stability for families with children, to increasing independence for individuals with disabilities and reducing housing instability—preventing homelessness. In this blog, HAI Group’s research division, the Public and Affordable Housing Research Corporation (PAHRC), addresses and debunks these common myths with data-driven insights.

What is affordable housing, and who lives there?

Myth: People living in affordable housing game the system and do not work.

Truth: Many people living in affordable homes are retired older adults or people with disabilities who can’t work.

More than 1 in 3 households living in affordable housing are headed by someone over age 62, and 1 in 5 residents have a disability. These households often face greater health, mobility, and financial challenges that limit their ability to work compared to their low-income, unassisted peers. Affordable housing offers stability, healthcare access, and social support to help them age safely in place.

Affordable housing also helps working families who are facing economic hardship. Among households with at least one non-disabled working-age member:

• 87% were currently or recently working in 2018.
• Two-thirds worked full-time.
• Employment rates are comparable to unassisted renters when accounting for demographics.

So why do they still need help? Despite high levels of employment, many assisted families still live paycheck to paycheck due to a scarcity of middle-income jobs, which may make it more difficult to advance in their careers and work consistent hours. Families living in affordable homes face life circumstances that make it harder to work, such as higher rates of disabilities, difficult health status, and caretaking responsibilities. Some families living in affordable homes are just beginning to invest in their education to qualify for higher-paying jobs that higher-income families could make earlier in their lives. Nearly half of those who do not work are caretakers for their families.

While some residents face longer-term challenges, most people don’t stay in affordable housing forever. The median length of stay between 2000 and 2022 was 4 to 5 years, about the time it takes to earn a college degree. Longer stays are more common among older adults, people with disabilities, and those in areas with limited affordable housing stock.

Regardless of how long they stay, affordable homes provide long-term benefits for health, stability, and upward mobility for the individuals and families they serve.

Source: Employment Trends Among People Living in Publicly Supported Homes. PAHRC. (2018). 2019 Housing Impact Report: Trends in Housing and Who it Serves. PAHRC. (2019). Participation, Transition, and Length of Stay in Federal Housing Assistance Programs. Cityscape. Andrew J. Greenlee and Kirk McClure (2024).

Myth: Affordable housing only serves extremely low-income individuals and families

Truth: Affordable homes help people across a wide range of incomes. They serve retirees on fixed incomes, people with disabilities, and working families trying to remain in their communities.

Eligibility, rent levels, and resident demographics vary across affordable housing programs. Most programs use a household’s income relative to the Area Median Income (AMI) to determine eligibility. For example, many programs serve individuals and families earning 80% or less of the AMI, while others focus on individuals and families earning below 30% of the AMI. In Connecticut, a family of four making $99,700 or less may qualify for affordable housing assistance.

Use the dashboard below to understand the household income levels that may qualify for affordable housing in your area:

While critical for extremely low-income households, a vast network of affordable housing programs supports families across a spectrum of incomes and needs.

The economic and community impact of affordable housing

Myth: Affordable housing lowers property values.

Truth: Overwhelmingly, research finds that affordable housing has a neutral to positive effect on surrounding property values.

Developments supported by Low-Income Housing Tax Credits (LIHTC), for example, have been shown to increase neighborhood property values.

A national review of 62 studies on the impact of affordable housing on property values found:

• 46% reported a positive impact
• 43% noted no impact
• Only 11% found a negative impact, often due to unrelated factors like poor design or mismanagement

Local studies confirm these findings, showing small but statistically significant increases in nearby property values. The impact depends on factors like development quality, property management, and neighborhood characteristics.

In addition to stabilizing home prices, affordable housing investment boosts local tax revenues and strengthens the overall economy.

Myth: Affordable housing costs too much and only benefits those who live in it.

Truth: Affordable housing benefits the entire community by saving costs of other public services, promoting economic spending, and creating jobs.

Investing in affordable housing stimulates local economies:

• Nationwide, every $1 spent on capital improvements and maintenance by public housing authorities generates up to $2.12 in indirect and induced economic activity.
• $4.5 billion in capital spending across six large housing authorities created $7.6 billion in economic activity and 7,600 full-time jobs.
• Every $1 of state income tax invested in Georgia's Low-Income Housing Tax Credit program generated $5.79 in economic activity and accounts for 4,284 jobs annually.
• Building 100 LIHTC family-designated units stimulates $7.9 million in local income and $827,000 in taxes and other revenue for local governments and creates 122 local jobs.
• Maintaining 100 LIHTC family-designated units is estimated to generate $2.4 million in local income, create 30 local jobs, and stimulate $441,000 in taxes and other revenue for local governments annually.

Affordable housing can also save money on public healthcare, education, and correctional services, all while reducing housing instability. Unstable housing was estimated to cost families with children over $100 billion in avoidable healthcare and education costs between 2016 and 2026. Investing in affordable homes can help families avoid these expenses and save cities millions of dollars by reducing evictions and property tax abatements. In fact, affordable housing that is enriched with resident services to help homeless individuals and families is associated with over $1,000 in cost savings per person from reduced emergency room visits and incarceration.

By increasing the supply of safe, accessible, and affordable housing, communities can generate long-term savings across multiple policy sectors, improve health outcomes, and stimulate their local economy, all while providing stable housing for individuals and families.

Source: National Association of Home Builders. (2010). The Local Economic Impact of Typical Housing Tax Credit Developments.
Econsult. (2010). Public Housing Stimulus Funding: A Report on the Economic Impact of Recovery Act Capital Improvements.

Building and preserving affordable housing

Myth: PHAs only own and operate public housing.

Truth: PHAs are the nation's oldest affordable housing providers across the country, and they continue to find innovative ways to best serve their communities through building and preserving affordable housing and resident programming. Today, 40% of PHAs own or manage affordable homes supported by programs beyond traditional public housing.

Beyond providing affordable housing for their communities, PHAs often implement programs, policies, and practices to improve housing, health, education, and employment outcomes for underserved and underrepresented populations. This ranges from after-school programs designed to improve children's education outcomes to health initiatives that help older adults safely age in place.

Myth: Once affordable homes are built, they are here to stay.

Truth: Affordable homes require ongoing funding to remain in good condition and financially viable.

Renewed operating and capital investments are essential to maintain aging properties and keep them financially solvent. In exchange for receiving funding, these properties must remain affordable for anywhere between 1 and 40+ years. Once these affordability commitments expire, these properties could be lost if funding isn’t made available to preserve these homes.

Preserving affordable housing saves money. Research has found that affordable housing preservation is likely more cost-effective than new construction, with some studies finding preservation between 25% and 50% less costly per unit than new construction. At the same time, new construction plays a critical role in expanding the overall supply of affordable homes, so it's important to invest in both preservation and new development to ensure our communities have an adequate supply of accessible, affordable housing.

With over 560,000 homes set to lose affordability restrictions by 2030, ensuring we have enough affordable housing to uplift our communities is more important now than ever. While constructing new units is an essential piece of the puzzle, so is preserving our existing affordable housing.

Source: The preservation of subsidized housing: What we know and need to know. Lincoln Institute of Land Policy. Reina, V. (2018). Comparing the life-cycle costs of new construction and acquisition-rehab of affordable multifamily rental housing. Wilkins, C. et al. (2015). Window of opportunity: preserving affordable rental housing. MacArthur Foundation. (2008).

How does affordable housing impact my community?

Myth: Affordable housing isn't in my community.

Truth: Affordable housing is everywhere.

One in 10 rentals are assisted by affordable housing programs. On average, federally assisted homes are located in just under two-thirds of neighborhoods across a metro area, demonstrating the importance of affordable housing programs in the nation’s rental market.

You may not recognize it, but newer affordable housing is often built to blend in and look like other homes.

Use the National Housing Preservation Database Mapping Tool to locate affordable homes in your area:

Myth: Affordable housing will increase traffic, burden schools, hurt aesthetics, or raise crime.

Truth: Affordable housing helps local communities and is constructed with quality in mind.

Affordable housing is located in rural, suburban, and urban communities and can range from single-family homes and townhouses to high-rise developments. Compared to traditional construction, affordable housing often faces additional restrictions and public pressure to ensure quality builds.

When it comes to traffic, research has found that affordable housing residents have fewer cars and drive less than the average household, and that low-income households make fewer trips. In fact, more affordable housing in job-rich, affluent neighborhoods could reduce commute times.

Similarly, affordable housing not only improves education outcomes for residents, but families living in multifamily homes tend to have fewer children than their peers who live in single-family homes. Research also finds that new housing developments are typically associated with a net-positive fiscal impact on that state and its local economy and were not associated with changes in school enrollment in Massachusetts.

Beyond traffic, education, and neighborhood aesthetics, there is also no substantiated link between affordable housing and increased crime. Some studies have even found that affordable housing is associated with decreases in crime. In areas with high crime rates and public housing, researchers largely concluded that this is likely to do with other neighborhood characteristics, such as a lack of opportunity, rather than the affordable housing itself.

The bottom line

Many Americans rely on affordable housing to maintain stability and pursue opportunity. While myths about these programs persist, the data tells a different story—one of resilience, effort, and the need for a stronger housing safety net. Whether residents are working toward economic independence or aging safely in place, affordable housing remains a crucial part of building healthier, more equitable communities.

For further insights and information on affordable housing, access PAHRC’s extensive research catalog.

This article is for general information only. HAI Group® makes no representation or warranty about the accuracy or applicability of this information for any particular use or circumstance. Your use of this information is at your own discretion and risk. HAI Group® and any author or contributor identified herein assume no responsibility for your use of this information. You should consult with your attorney or subject matter advisor before adopting any risk management strategy or policy. 

HAI Group® is a marketing name used to refer to insurers, a producer, and related service providers affiliated through a common mission, management, and governance. Property-casualty insurance and related services are written or provided by Housing Authority Property Insurance, A Mutual Company; Housing Enterprise Insurance Company, Inc.; Housing Specialty Insurance Company, Inc.; Housing Investment Group, Inc.; and Housing Insurance Services (DBA Housing Insurance Agency Services in NY and MI).