The Partnership for Strong Communities today released a fact sheet on the economic benefits of affordable housing development in Connecticut. PSC's analysis reveals that affordable housing is a key factor in stabilizing and growing Connecticut's economy. For every 100 affordable homes constructed, over $1 million in additional state and local taxes is generated yearly.
For every 100 affordable homes constructed, the following economic benefits are generated:
- $14.5 million in new economic activity during construction, $3.8 million in each subsequent year
- 165 jobs supported in the first year, 42 jobs in each subsequent year
- $2.3 million in state and local tax revenue during construction, $1.1 million in each subsequent year
- $7,000 average increase in disposable income for families living in new affordable homes
Affordable housing is a crucial component of economic development, as it allows the state to broaden its tax base while increasing the amount of disposable income that families can spend on education, healthcare, and other services in the local economy. In addition, for every $1 invested by the State in affordable housing programs, $4.57 in private investment is leveraged. The facts are clear: Affordable housing is an important, beneficial, and cost-effective investment for the State of Connecticut.
In the Fiscal Years 2018/2019 biennial budget, the Connecticut General Assembly authorized $255 million in capital funding for affordable housing development. Governor Lamont's Fiscal Years 2020/2021 capital budget proposes no new bond authorizations for affordable housing development.
Connecticut already faces a massive shortage of affordable housing. In 2018, over 200,000 households in the state spent over half their income on housing costs, and the state had only 38 affordable rental homes per 100 extremely low-income households (those making at or below 30% of area median income). With such high housing costs and an acute shortage of affordable homes, Connecticut should not be divesting from affordable housing programs.
Please be sure to sign up for PSC's legislative alerts as we appeal for a state budget that puts Connecticut residents first, with adequate funding for affordable housing, homelessness, and community development programs.