5 Reasons Why Attainable Housing Should Be a Priority in Economic Development Plans

When we think of economic development, conversations often turn to new businesses, infrastructure projects, and job creation. But there’s a critical piece of the puzzle that’s too often overlooked: affordable and attainable housing. Without it, local economies just can’t grow to their full potential. 

Yes, affordable housing is about giving people a roof over their head, but it’s also about strengthening the foundation of our workforce, supporting community businesses, and creating sustainable towns and cities. 

In short, housing IS economic development!

Affordable Housing Anchors the Workforce

Every business, from hospitals and schools to restaurants and factories, depends on a reliable workforce. But when housing prices outpace wages, workers are pushed farther from their jobs (or out of the area altogether). This means higher turnover, longer commutes, and workforce shortages.

Attainable housing makes sure that essential workers (teachers, healthcare professionals, service staff, and skilled tradespeople) can live close to where they work. After all, a strong, stable workforce is one of the best incentives a community can offer to attract new businesses (and keep existing ones thriving)!

Housing Creates Economic Ripple Effects

Affordable housing is an economic engine. Construction projects generate jobs, power purchase materials, and contribute to local tax bases. Once homes are occupied, local residents put money back into the community through groceries, transportation, childcare, and other everyday expenses.

Did you know that studies have shown that every dollar invested in affordable housing yields multiple dollars in economic activity? It’s a powerful multiplier effect: stable homes lead to stable spending, which strengthens local businesses and fuels long-term economic growth.

Stability Strengthens Communities!

Communities flourish when people can put down roots. Affordable housing reduces employee turnover and gives families the stability to engage in schools, support local businesses, and participate in civic life. That stability fosters community entrepreneurship, nurtures long-term town pride, and builds stronger neighborhoods.

It also saves public resources.

Families and individuals who have access to safe, affordable housing are less likely to rely on emergency services and social safety nets, which means taxpayer dollars stretch further. Affordable housing isn’t just a social good—it’s a fiscal strategy.

The Long-Term Cost of Ignoring Housing

The opposite is also true: when affordable housing isn’t prioritized, communities are the ones paying the price. Labor shortages make it harder for businesses to expand. Workers leave in search of lower-cost living, creating brain drain. Homelessness and housing instability go up, straining public health and safety systems.

Communities that neglect housing in their economic plans risk stalling their own growth. Housing shortages don’t just hurt families, they hurt entire economies.

Housing Is Economic Development

Affordable housing should never be an afterthought in economic development; instead, it should be the foundation. Communities who invest in housing see stronger workforces, more resilient local businesses, and healthier, more engaged neighborhoods.

The path to a thriving economy doesn’t start with buildings or roads…it starts with people! And people need homes. 

By making affordable housing a central part of economic planning, Community Catalysts isn’t just building places to live. We’re building stronger communities and a more sustainable future.