Measuring Economic Impact Of Building Affordable Housing
The National Association of Home Builders has released a study, "The Economic Impact of Low Income Housing Tax Credit Development Along Transit Corridors in Metro Denver," which quantifies the income, jobs, and taxes generated when affordable housing is built along transit corridors using low-income tax credits.
"The Home Builders Association of Metro Denver commissioned this study in partnership with local non-profit the Urban Land Conservancy to better understand the economic impact of affordable housing along transit corridors in the Denver metropolitan region. While significant research has been done on the affordability gap in this region, there has been little focus on the local income and local jobs created by the construction of affordable housing. With this knowledge, we can truly understand the local economic impact of housing tax credit construction," the report notes.
The estimated one-year metro area impacts of building 615 tax credit apartments in the 10-county Denver MSA include $57.6 million in local income, $5.0 million in taxes and other revenue for local governments, and 732 local jobs. The additional, annually recurring impacts of building 615 tax credit apartments in the Denver MSA include $16.7 million in local income, $2.3 million in taxes and other revenue for local governments, and 192 local jobs, according to the report.
The study focused on housing near transit. Ninety-two percent of the apartments that made up the underlying data of the study were taken from developments within a half-mile of light rail or a quarter-mile of rapid bus transit, otherwise known as “Transit-Oriented Development.”
"This focus on TOD affordable housing allows us to better understand the impact of TOD affordable housing on the local economy as well as make informed policy decisions regarding the positive economic impact tax credits have along transit corridors," the report notes.
The report has been added to the Best Practices.