Business View Caribbean | February 2021

14 BUSINESS VIEW CARIBBEAN FEBRUARY 2021 GUEST SUBMI SS ION While those who already have safe and stable housing may not feel the true cost of poverty, the effects are real and can have a serious detriment on our communities. High housing prices can slow down a local economy, leaving jobs unfilled and less spending power in a community. But, when affordable housing is readily available, there are more opportunities for people at all income levels. More money is available for spending in a community, and long-term change can begin to take root. Let’s take a look at some of the economic benefits of affordable housing. More money spent in local communities Maybe the most obvious economic benefit of affordable housing is the increase in discretionary spending. For most people, rent is the biggest and most important expense each month. When income loss threatens the ability to meet rent payments, the likelihood of spending money on anything other than the most basic needs harms the local economy. But when residents of affordable housing communities can make their rent payments, they’re able to spend more on local purchases – and go beyond the bare necessities to buy healthy food, have better access to healthcare, and spend more at their nearby businesses. Fewer evictions Hundreds of millions of people around the world live in a rental home or apartment, and one-fourth or more of these renters spend more than half of their monthly income on rent payments. That means millions of people are one small, unexpected expense away from losing their housing. The sacrifices folks were already making – medicine, childcare, groceries, education – in order to make rent have only intensified since the global unemployment rate rose to 30 percent during the COVID-19 pandemic. The threat of evictions has always loomed for workers making just enough to pay their landlords every month. Now it’s quickly becoming a reality for many more individuals. These repercussions will likely have long-lasting effects that impact generations in a family. Evictions spark a cycle of instability for families. This has a ripple effect in their communities and harms a community’s social and economic wellbeing. That’s why housing stability is at the heart of affordable housing; it works to prevent evictions no matter the economic climate, and the social and economic return is well worth the investment. Healthier population means a healthier economy A person’s housing is a huge social determinant of their health . Among other factors like income