Decent, affordable housing is important to families. Certainly, it fulfills a basic human need for shelter, but it also contributes to the well-being of both parents and children. Studies show that children in stable housing do better in school and are less likely to experience disruption in their education due to unwanted moves. By alleviating crowding and improving housing quality, decent, affordable housing reduces exposure to stress, toxins and infectious disease which leads to improvements in both physical and mental health. Affordable housing also frees up funds within families' tight budgets to spend on health care and food. Studies have found that children whose parents receive housing assistance benefit from better nutrition. For parents, living in decent, affordable housing also means reduced stress due to a lessening of concerns that high housing costs will lead to foreclosure and eviction; this in turn leads to fewer physical and mental health problems and reduced absenteeism on the job.

To learn more about how housing helps kids do better in school and improve child and family health, click here to leave this site to access literature reviews on "how housing matters" prepared by the Center for Housing Policy and Enterprise Community Partners.

Affordable housing also is important to the economic vitality of communities. Affordable homes can attract and retain employees to your community – a selling point and a competitive advantage for area employers. Affordable homes also support the local workforce so they can live close to their jobs. Shorter commutes allow workers to spend more time with their families while the community benefits from reductions in traffic congestion, air pollution and expenditures on roads. In revitalizing communities, the construction of affordable homes can also help to stimulate economic growth. A healthy mix of housing options, from market-rate and affordable rental housing, single-family homes, duplexes, as well as developments for seniors ensures opportunities for all individuals to improve their economic situation and contribute to their communities.

Nationwide, between 1997 and 2005, the number of working families paying more than half their income for housing increased 87 percent, from 2.4 million to 4.5 million. Millions of additional working families can only afford to live far from their places of work, forcing them to endure long commutes and spend much of their housing cost savings on transportation. Families that depend upon workers in low-paying jobs are even worse off. To comfortably afford a home in virtually any housing market, these families require ongoing subsidies such as those provided by the federal government through its various rental assistance programs. Unfortunately, available subsidies serve only about one-quarter of those in need – a strong argument for continued and expanded federal funding for these programs.

Home prices and rents that are high relative to area incomes signal an underlying problem – a serious shortage of affordable housing for those in the community who need it. National figures tell part of the story: In the first five years of this decade, barely 200,000 units of rental housing were produced – not enough to replace units lost to conversion or demolition much less meet rising demand, especially in some of the country's strongest markets. Despite the recent dip in the price of for-sale homes, homeownership costs remain prohibitively high for many families who have seen wage increases of only 3 percent per year since 2000. State and local policies that make it difficult or expensive to build new homes often serve to exacerbate the situation by preventing the market from supplying enough housing to meet the demand. Low-density zoning, excessive and duplicative permitting procedures, and policies that limit the availability of multifamily rental homes are examples of policies that may drive up the price of housing by restricting the supply of affordable homes. What can be done? HousingPolicy.org provides the tools to help you tackle the problem in your community. Start with the Building a Strategy section to see where your community stands. Then, explore the many proven solutions to creating more affordable housing in the Toolbox section.

Photo courtesy of Potterhill Homes

To meet the diverse needs of your community, both rental housing and homeownership are important. Rental homes fulfill the needs of many families. For some, especially low- and moderate-income families in high-cost markets, rental homes are the most financially realistic option. Other people rent because they prefer the lifestyle of renting. Among their ranks are both former homeowners who are empty-nesters and lifelong renters who don’t want to worry about lawns, gutters and home repairs. Still others rent because they expect to move frequently. Finally, for some families, affordable rental housing is an important steppingstone that allows them to accumulate savings and become prepared for homeownership.

Homeownership is also a critical part of the housing stock and, for many working families, represents the American Dream. Aside from comprising their largest financial asset, homeownership provides security from unwanted moves, and control over features of their home. Some studies have shown that homeownership is beneficial for children – they are more likely to do well in school, less likely to have behavior problems and less likely to become pregnant as teenagers. From a community’s perspective, homeowners provide stability to their neighborhoods in which they are invested.

For these reasons, communities should work to ensure there is sufficient rental and homeowner housing stock to meet the diverse needs of all families in the community.