All people have the right to shelter, peace, dignity and security—a home. Because housing is a core human need, the housing market’s stability or volatility provides key insights into the social and economic sustainability of a city, state, or country. Adequate housing security is critical to public health and central for democratic participation.
When a large majority of people in a community have healthy housing they can afford (meaning they spend no more than 30% of their income on housing), the community as a whole has more economic stability and members enjoy a stronger quality of life.
The opposite is also true. A shortage of affordable housing negatively impacts a community’s social and economic stability. High levels of cost-burdened residents increase stress levels, strain social resources, slow productivity and business growth, widen social inequality, lower quality of life and increase crime rates. Additionally, lack of adequate housing leads to sprawl impacting the environment and burdening human health.
In this article, we look at how housing affordability and availability intersects with the economic, social and environmental sustainability of communities.
Housing & Social Equity
Access to housing shapes a person’s life and their immediate access to economic opportunity, education, healthcare, and community resources. Nothing underscores this more clearly than America’s historic racist and discriminatory housing and lending practices that created long-standing, systemic socioeconomic barriers preventing Black and brown communities from accessing the same opportunities as their white counterparts. Today, people of color are more likely to be renters and more likely to experience homelessness with African Americans accounting for 40% of America’s homeless population. According to Brookings, in 2016 the average net worth of a white family was ten times more than the average net worth of a Black family. It’s estimated the loss of consumption and investments due to the racial wealth gap will cost the U.S. economy $1 trillion to $1.5 trillion between 2019 and 2028.
Limited access to affordable housing reinforces cycles of disadvantage and social disparity. Policies designed to support marginalized communities and increase access to affordable housing, education and employment are critical for reducing the wealth and opportunity gap and creating a more equitable society that promotes community cohesion and resilience. Residents living in communities with increased social equity benefit from a shared sense of trust and belonging, reduced crime, and increased civic engagement.
From safety and security to quality schools and viable employment, access to affordable housing directly influences the health and economic stability of the wider community.
Housing & Health
A large body of research points to the profound intersection between human health and affordable housing. Housing is a key social determinant of health; stable, safe, and affordable housing contributes to improved health and reduced healthcare costs.
According to a policy brief published by Health Affairs, “People who are not chronically homeless but face housing instability (in the form of moving frequently, falling behind on rent, or couch surfing) are more likely to experience poor health in comparison to their stably housed peers. Residential instability is associated with health problems among youth, including increased risks of teen pregnancy, early drug use, and depression.”
The economic strain of unaffordable housing impacts physical and mental health and contributes to chronic stress, anxiety, and depression. Often, cost-burdened families have to choose between paying rent and buying groceries, and are more likely to forgo necessary medical care and prescriptions.
To compound the matter, those struggling to afford housing are typically relegated to substandard living conditions in homes that may have pest problems, lead paint, mold, poor air quality, and other deficiencies that cause or exacerbate health issues. Additionally, the location of the housing may also effect human health. Land is cheaper near environmentally contaminated sites and areas prone to natural disaster. An assessment found over 9,000 federally subsidized housing properties sit within a mile of a Superfund site. Superfund sites are contaminated with hazardous substances. A 2021 investigation by the AMP Reports states, “The EPA and state environmental agencies have struggled to clean up Superfund sites and, in many instances, can’t confirm that they’ve contained the threat to human health. Local housing authorities lack the money to address pollution or test for contaminants, and it’s rare for HUD to analyze the health risks or relocate people from hazardous housing developments despite its own regulations requiring the agency to provide tenants with a safe and healthy place to live.”
Housing & Environmental Sustainability
Experiences with recent natural disasters such as extreme storm events and the increased demand for affordable housing provides opportunities for planners to prioritize sustainable building practices to promote healthier communities and rethink their land use decisions.
As we know, lack of affordable housing in established urban areas results in sprawl, forcing people with lower incomes to rural areas where homes are more affordable. One of the negative impacts of sprawl is the increase in greenhouse gas emissions and pollution as people are dependent on their vehicles for work and essential services.
Not only can efficient land use planning help protect fragile ecosystems, it proactively reduces the risk of development in areas that are susceptible to wildfires, flooding, landslides and storm damage in an effort to create more disaster-resilient neighborhoods.
Widespread adoption of green building practices results in healthier homes and healthier communities. In one example, The National Center for Healthy Housing points to research that shows children who live in green housing experience fewer asthma attacks, respiratory allergies and sick days compared to those living in "sick buildings" containing materials made with harmful chemicals.
There are misperceptions that green building materials and practices are more expensive to use in housing developments than conventional materials. Yet the World Green Building Council points to an overall trend in the reduction of green materials and technologies with experts saying green building development can cost less than conventional construction when the strategies are implemented in the initial design phase of the build. The materials that do cost more upfront are offset by the reduction in energy consumption and lower utility costs.
The advancements in the green building industry have unlocked big picture benefits that extend beyond energy efficiency and resource conservation to improvements in health, economic productivity, resiliency and improved quality of life. A smart growth approach to housing development with green design and construction results in more affordable homes, healthier communities and improved environmental conservation and protection.
Housing & Economic Stability
Housing that is affordable to the majority of a community’s residents supports economic stability, improves social equality, strengthens quality of life and supports environmental sustainability.
Well planned new housing construction creates a ripple effect that generates revenue for state and local governments. It provides employment opportunities that benefit a range of industries from construction and building supply companies to grocery and appliance stores.
For example, the National Association of Home Builders estimates the one-year economic impacts of building 100 single-family homes in the State of Washington include:
$31.8 million in income for Washington residents
$9.4 million in taxes and other revenue for the state and local governments in the state
343 jobs in the State of Washington
Annually, the recurring impacts of building 100 single-family homes in the State of Washington are:
$5.6 million in income for Washington residents
$2.0 million in taxes and other revenue for Washington state and local governments
72 jobs in Washington
Additionally, employers have an incentive to invest in communities that have plentiful housing affordable to its workforce. When there are viable employment opportunities inside of a community, workers save time and money by avoiding long commutes, in turn leading to increased job satisfaction and productivity.
It’s especially important for teachers, law enforcement and healthcare providers to be able to afford homes in the communities in which they work. If workers cannot find housing, it becomes difficult to staff these essential services. One study, Housing Affordability Indicators and the Sustainability Paradigm in OECD Countries, researched 23 countries in the Organizations for Economic Co-operation and Development (OECD) from 2010 to 2019 and found a “1% increase in housing costs led to a -2.17 decrease in the total labor force” within a community as residents moved to areas with more affordable housing.
The availability of housing reduces the negative social and economic costs associated with not having adequate supply. Housing that accommodates different income groups creates economic diversity and resilience that can protect against economic downturns. People who live in the community where they work experience stronger social cohesion, contribute to the local economy by spending their income on local businesses, participate in community events, and contribute to the area's tax base.
Importantly, when families are able to afford housing, it reduces the strain on social services. According to the National Low-Income Housing Coalition, “Research shows that increasing access to affordable housing is the most cost-effective strategy for reducing childhood poverty and increasing economic mobility in the United States. Stanford economist Raj Chetty found that children who moved to lower poverty neighborhoods saw their earnings as adults increase by approximately 31%, an increased likelihood of living in better neighborhoods as adults, and a lowered likelihood of becoming a single parent. Moreover, children living in stable, affordable homes are more likely to thrive in school and have greater opportunities to learn inside and outside the classroom.”
It Starts with Housing
America is in the midst of a housing crisis that is exacerbating social inequalities and the growing wealth inequality gap undermines the stability and productivity of the economy.
In January of 2023, the Department of Housing and Urban Development’s (HUD) point-in-time report counted 653,104 Americans without a home, the highest number since 2007. (It’s acknowledged that point-in-time counts are an undercount as participation is voluntary and without addresses it is difficult to reach all of America’s unsheltered individuals.)
Here at home in Bellingham and Whatcom County, in August 2024, the Opportunity Council released data on the sheltered and unsheltered homeless populations, counting 846 people (671 households), of whom 206 were unsheltered households and 465 were sheltered households. 47 % of those surveyed in Whatcom’s point-in-time count said housing affordability was the primary cause of their homelessness.
“Demand for housing – especially housing that is affordable to residents earning under the median income – is high. Local data suggests that rents have risen 41% in the past five years, and home prices have risen by 52%.”
“Lack of housing keeps many people in housing that is too expensive, known as housing cost burden. Overall, 39% of all households are cost burdened. Cost burden is especially common among renters; 56% of renters in Bellingham are cost burdened, compared to 24% of homeowners.”
“High rents and cost burden compound other social problems, making it more difficult for households to pay for necessities such as transportation, food, and medical bills. The community has seen an increase in the need for services that are complementary to housing stability, such as domestic violence, mental health, substance abuse and housing case management supports.”
“In 2022, 320 homeless families with children applied for services from the Homeless Service Center, which is a 71% increase from 2018. Similarly, senior households over age 60 increased from 90 applicants in 2018 to 155 in 2022 (a 72% increase).”
“From 2018 to 2022, families with children applying for services through the Whatcom Homeless Service Center increased by 71%. In 2022, over half (52%) of the new intakes for the Housing Pool were people in families with children.”
Just recently the U.S. Census Bureau’s American Community Survey released new data estimating that 22% of Bellingham residents now earn incomes below the poverty line, this represents an increase of 54% year over year.
These statistics are sobering. Experts estimate America needs between four and seven million new homes to meet the demand. In Bellingham, officials estimate the city needs about 900 new homes per year over the next 20 years to meet the local demand.
While the outlook may appear bleak, the silver lining for the City of Bellingham and Whatcom County is the opportunity to change ineffective systems that are slowing progress. Our leaders can choose to aggressively pursue capital improvement projects, implement incentives for greener building practices, and collaborate with the private sector to increase housing supply using an approach that will result in a more socially equitable, sustainable future for our community.
Addressing housing supply is an essential first step to close the widening gap between Whatcom County’s privileged and marginalized communities. After all, housing is not just about shelter—it is a part of our identity and it plays a central role in determining how people access opportunities that generate more stability and improve our overall quality of life.
Commentaires