Access to affordable housing supports economic mobility, reduces strain on public services, and increases local spending. When that housing is revitalized, the impact extends even further, strengthening neighborhoods and creating lasting benefits across generations.
In the fifth edition of our Housing Impact Report blog series, we share the latest research that you can reference to demonstrate the economic impact of expanding access to and revitalizing affordable housing.
Accessing Affordable Housing
Promotes intergenerational mobility
Children raised in public housing are more likely to achieve higher earnings as adults and face a reduced likelihood of incarceration later in life. For every additional year a teenager spends living in public housing, their total discounted lifetime pre-tax earnings are projected to rise by $45,400 for females and $47,300 for males. These higher earnings generate more tax revenue, which can cover the costs of running these programs even before accounting for other savings, such as lower healthcare or incarceration costs.
Source: Andersson, F. et al. (2016). Childhood Housing and Adult Earnings: A Between-Siblings Analysis of Housing Vouchers and Public Housing. NBER Working Paper 22721. https://doi.org/10.3386/w22721.
Reduces costs to other public services
Numerous studies have found that offering affordable housing, particularly if paired with supportive services and targeted towards homeless individuals and families, can result in significant public savings that offset the cost of administering these programs. A systematic review of 20 studies examining permanent supportive housing programs with a housing-first model concluded that the benefits of these programs outweigh the costs.
Source: Jacob, V. et al. (2022). Permanent Supportive Housing with Housing First: Findings from a Community Guide Systematic Economic Review. American Journal of Preventive Medicine, 62(3), e188–e201. https://doi.org/10.1016/j.amepre.2021.08.009
For instance, when chronically homeless individuals in Massachusetts were offered affordable housing, their healthcare costs decreased by $10,470 per person per year compared with similar individuals who were not offered affordable housing. Denver Supportive Housing Social Impact Bond Initiative, which offered supportive housing to chronically homeless individuals, recouped approximately half of its costs by decreasing jail, ambulance, and emergency department encounters.
Stimulates local spending
Affordable housing stimulates local economies by boosting the purchasing power of low-income households. When families spend less on rent, they have more money to allocate toward vital needs such as groceries, healthcare, and education. This reallocation not only improves their quality of life but also increases demand for goods and services within the community, causing an economic ripple effect that supports local businesses and stimulates job creation. For example, in Baltimore, MD, public housing enabled residents to save $68.1 million in rental costs in 2023, which is projected to generate $123.5 million in local economic activity and support 280 full-time jobs.
Revitalizing affordable housing
Generates economic activity
Building, maintaining, and operating affordable housing also supports local community growth by stimulating spending and creating jobs. Among six large PHAs, every $1 spent on capital projects generated $1.89 in additional local economic activity and supported 11 full-time jobs. Similarly, every $1 million spent by these PHAs on operations and vouchers generates another $1 million in local economic activity and 12 full-time jobs.
Generates positive community spillover effects
Revitalizing affordable housing creates substantial positive spillover effects that enhance neighborhood well-being. When distressed public housing was improved through HOPE VI, surrounding communities saw notable increases in property values and rents, along with reductions in vacancy rates and the average age of buildings compared to similar neighborhoods prior to redevelopment. Research also finds that these neighborhoods revitalized by HOPE VI benefited from higher levels of homebuying activity and lower violent crime rates. The most pronounced benefits occurred in neighborhoods that were previously the most economically disadvantaged and isolated, demonstrating that affordable housing improvements can catalyze broader community renewal.
Sources: Teixeira, S., Spielvogel, B., Hwang, D., Lown, J., & Coley, R. L. (2024). Short- and long-term effects of HOPE VI redevelopment on neighborhood housing conditions. Housing studies, 10.1080/02673037.2024.2423820. Advance online publication. https://doi.org/10.1080/02673037.2024.2423820
Cloud, W., & Roll, S. (2011). Denver Housing Authority’s Park Avenue HOPE VI revitalization project: community impact results. Housing Policy Debate, 21(2), 191–214. https://doi.org/10.1080/10511482.2011.567288
Zielenbach, S., Voith, R., & Mariano, M. (2010). Estimating the local economic impacts of HOPE VI. Housing Policy Debate, 20(3), 485–522. https://doi.org/10.1080/10511481003788794
Improves outcomes for children
Revitalizing affordable housing, particularly in socially isolated neighborhoods, can substantially improve life outcomes for the children who move into these properties.
Children who moved into public housing revitalized by HOPE VI earned significantly higher incomes in adulthood, were more likely to attend college, and were less likely to be incarcerated compared to children who moved into traditional public housing. These gains are attributed to stronger relationships between public housing residents and higher-income families who moved into these neighborhoods following revitalization.
Overall, children born into revitalized public housing are expected to earn $500,000 more over their lifetimes compared to those born into traditional public housing. This significant increase in lifetime earnings far exceeds the initial investment required for revitalization and can yield greater tax revenue for local communities.
Source: Chetty, R., Diamond, R., Foster, T. B., Katz, L. F., Porter, S., Staiger, M., & Tach, L. (2026). "Creating High-Opportunity Neighborhoods: Evidence from the HOPE VI Program," National Bureau of Economic Research | NBER Working Paper 34720 or Center for Economic Studies, U.S. Census Bureau Working Paper 26-02.
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