Nationwide, $169.9 billion is estimated to be needed to preserve the nation’s public housing stock. Despite the challenge, research suggests that revitalizing public housing could transform the neighborhoods these properties are in and improve outcomes for the children who live there.
In this edition of our Housing Impact Report blog series, we share the latest research that you can reference to demonstrate the impact of revitalizing public housing.
Ready to dive in? Access the full report on the PAHRC website or by clicking the button below.
Redeveloping public housing stimulates economic activity
Redeveloping public housing stimulates local economies by increasing spending and creating jobs. From 2013 to 2017, six large housing authorities spent $4.5 billion to maintain and modernize public housing, supporting approximately 7,600 full-time jobs and generating $7.6 billion in economic impact. Each $1 million invested by these PHAs generated $1.89 million in economic activity.
Econsult. (2018). The Economic Impact of Public Housing.
Preserving distressed public housing can transform neighborhoods
Revitalizing public housing can lead to positive spillover effects that improve neighborhood prosperity. Communities with distressed public housing that were preserved through HOPE VI had significantly higher property values and rents and significantly lower vacancy rates and building ages following renovations compared to neighborhoods that were similar prior to redevelopment. Studies have also found that communities with public housing revitalized through HOPE VI also experienced significantly higher homebuying activity and lower violent crime rates. These effects varied across communities, with the largest effects occurring in communities that were the most economically disadvantaged and isolated prior to redevelopment.
Sources: Teixeira, S. et al. (2024). Short- and long-term effects of HOPE VI redevelopment on neighborhood housing conditions. Housing studies, 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.
Zielenbach, S., Voith, R., & Mariano, M. (2010). Estimating the local economic impacts of HOPE VI. Housing Policy Debate, 20(3), 485–522.
Children who move into revitalized public housing experience better outcomes
HOPE VI neighborhood revitalization has increased positive social interactions and networks among residents.
As a result of these new social networks, children that move into revitalized public housing earned significantly higher incomes in adulthood, were more likely to attend college, and were less likely to be incarcerated compared to children in traditional public housing.
Each year the average family lives in revitalized public housing, the lifetime earnings of their children is projected to increase by $24,900 per unit. If these neighborhood conditions are sustained for 30 years, the earnings gains for the children raised in these homes would surpass the initial taxpayer revitalization costs. These gains would also generate additional income tax revenue and reduce spending on public assistance, offsetting most of the initial cost.
The study credits these gains to stronger ties between public housing residents and children from higher-income families moving in after HOPE VI improvements.
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
Takeaways for housing providers
Neighborhood revitalization is a viable, cost-effective strategy
Revitalizing isolated public housing by linking it to the broader community is a cost-effective way to create opportunity-rich neighborhoods. Modernizing distressed public housing can also generate positive spillover in the community. Want to find neighborhoods that could benefit from additional investments in health, education, transit, and jobs? Use PAHRC’s Neighborhood Opportunity Search Tool.
Connection is key
Public housing revitalization that linked isolated low-income properties with surrounding communities led to substantial gains in children's economic opportunity. Wondering if residents you serve could benefit from a similar strategy? Use the Opportunity Insights map to find potential candidates.
Revitalization spillover effects are higher for properties in the most economically disadvantaged neighborhoods
If your organization values neighborhood spillover effects, prioritize revitalizing the most isolated, economically disadvantaged properties first.
Ready to learn more?
Download the Housing Impact Report for more data to dispel myths and demonstrate the impact of affordable housing.
Learn how research can inform your advocacy by reserving your spot for PAHRC’s virtual event on Thursday, April 30, from 2-3 p.m. ET.
