Affordable Housing Economic Impact ReportHR&A , Wed, Jun 22nd, 2011 2:36:31 pm
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NYSAFAH and HR&A Advisors Release Economic Impact Study. Affordable housing spurs economic activity, creates jobs, and helps to revitalize communities according to a study released NYSAFAH and HR&A Advisors. Based on the last seven years of government data from the Department of Housing Preservation and Development (HPD) and New York State Homes and Community Renewal (HCR), the comprehensive study on the economic impact of affordable housing in New York includes developments that were supported by federal, state, and New York City funds.
The report, Economic Impact of Affordable Housing on New York State’s Economy, shows clear evidence that the affordable housing industry creates significant economic benefits for the State of New York, contributing substantively as an engine for growth, employment and renewal. Among the top findings, the study revealed that an average 100 unit affordable housing project in New York State generates:
- 175 jobs during construction, and sustains 20 jobs permanently.
- $9.6 million in compensation during construction, sustaining $1.3 million in compensation annually thereafter.
- $26.9 million in economic activity, including $15.5 million in public and private investment in development and $14.1 million in economic spinoff activity.
- $3.6 million annually in ongoing economic activity, including spending on local goods and services.
The report concludes that public investment in affordable housing in New York totals $1.3 billion annually, leading to an additional $1.5 billion per year in private Investment. The industry constructs, rehabilitates and preserves 18,490 homes each year, which create 31,800 new jobs and $1.8 billion in wages during construction, and sustain 5,640 permanent jobs and $230 million in wages per year thereafter. The study also found that annual affordable housing development creates $2.6 billion in economic spinoff activity during construction while sustaining $650 million in annual economic spending on local goods and services, and building maintenance.