Every human being has the right to afford a living in the city they reside. Many people wish to stay in a specific location, but most get priced out of such places. Budget becomes a problem and makes it tough to get accommodations in that area. Housing policy experts suggest that when the cost of living is high, it negatively impacts many individuals, including the business owners in the vicinity.
Here are a few grounds for the affordable housing crisis:
According to Maxwell Drever, many well-to-do homeowners are also affected by high housing costs.
Driven up house rates worsen road traffic
Most home project developers often use traffic as an alibi of not establishing their building projects. The reality is that traffic is the by-product of a shortfall in affordable housing in the proximity of job centers. When a vast majority of individuals cannot afford a living near a job, they drive their way to work. Many people are struggling with traffic congestion, impacting the environment adversely, advises Maxwell Drever. Many individuals belonging to the low-income group were pushed out of their jobs and replaced by employees belonging to the middle class. Such a transition can again increase traffic as high-income people use cars to reach their workplace even when they live near their offices. People living in affordable homes will not require traveling by transit if the houses remain located near their business. Therefore, to minimize the travel demand, leading to a worse traffic situation, the scarcity of homes must get minimized.
Impact on business owners and employers
The vast majority of public and private sector companies look for individuals who can work at low wages. Such companies require low-paid workers such as guards, maintenance workers, cashiers, and other individuals to serve the company. Lack of budget accommodation leads such individuals to live far away from their jobs, causing a hassle to them and their employers. Wealthy households struggle to have an employee living nearby. Such homeowners cannot have their gardeners and house help when they need it due to a lack of affordable housing. Several individuals believe that low-wage workers are an integral part of the economy. Many jobs are suitable for the low-income groups which remain underutilized due to lack of budget accommodation near the work centers. Such workplaces are unfilled because employees of low-income groups are moving away due to high rental costs, affecting the nation’s economic growth.
People burdened with high living costs purchase fewer things
Lack of budget accommodation can harm local business operations as people spend maximum income on house expenditures. Such heavy costs lead people to devote fewer funds to other things, hurting local businesses. Therefore, it is essential to increase the supply of affordable houses so that homebuyers can afford a living near their workplace. Home developers must keep the cost of such homes in check. Such a strategy shall enhance the consumption of goods and services, thereby stimulating growth in all sectors.
The crisis of affordable housing is a matter of concern for people from different areas of life. Therefore, it is essential to look for innovative solutions to eradicate the shortfall of budget accommodation, making such critical components available to people from every class and bringing about economic stability.