Barker Management Inc. on the Importance of Affordable Housing

Affordable housing is a crucial part of maintaining a healthy community. With the growing gap between the rich and poor, home prices have skyrocketed while wages have stagnated. It makes sense that people need affordable housing to provide a safe place for their families to live. In the greater Los Angeles area, affordable housing is particularly important due to the high cost of real estate. Companies like Barker Management Inc. are involved with the creation and maintenance of affordable housing.

Defining Affordable Housing

The Department of Housing and Urban Development (HUD) defines “affordable dwellings” as those in which a tenant can allocate 30 percent or less of their monthly income to rent or a mortgage payment. A household is considered low income if it makes 80 percent or less of the local area’s median income. According to this definition, a home is “affordable” for low-income families if the costs of living there are less than 24 percent of the median income in the area.

This definition has problems, according to some housing advocates. The calculation of affordability based on the local area’s median income can make the cost of housing unrealistically high. Areas like Los Angeles fall under this category. There is a stark difference between families which are considered “low-income” under these guidelines and the families which are most in need of assistance, having incomes lower than the poverty line.

Family Well-Being

When people live in safe, clean affordable housing, they are more likely to have healthy lives. Children who live in stable housing situations have better results in school. Families in good affordable housing are less prone to health problems caused by mold, lead paint, and insects. When a family lives in an affordable home, they free up more of their budget for the other necessities of life, such as food and healthcare. Many disadvantaged families must make difficult choices with their money each month, and affordable housing takes some pressure off these families.

Economic Stimulus

When a community has enough affordable housing, it attracts workers who cannot necessarily afford to buy homes. These people can save more of their money for a down payment on a home if they are living in affordable housing. Having enough affordable housing means that a company can attract the right workforce to the local area. When the local workforce can live closer to their jobs, it reduces air pollution, traffic congestion, and wear and tear on roads.

A lack of affordable housing can cause companies to look further for employees, putting them under stress from long commutes. Commuting costs are also an important consideration when defining affordable housing.

Affordable housing can provide a shot in the arm to the local economy. Construction companies have more business, and the community is able to house more workers.

Rentals Versus Homeownership

When it comes to affordable housing, both rentals and single-family properties for sale are equally important. While rental apartments may be best for low-income families and those who prefer a rental lifestyle, affordable homes can provide a more stable place for families to live. While people are accumulating money for a down payment, they often live in affordable rental housing.

Homeownership is another goal for affordable housing. When the mortgage payments and taxes are within a family’s reach, homeownership can give them a better stake in their community. Homeownership also allows a family to build net worth and to provide for their future in a better way. When homeowners pay off their mortgage, they are putting equity into their homes rather than simply enriching a landlord.

Promoting Affordable Housing

Affordable housing is a goal for many communities like Los Angeles. While family incomes have not risen over the past several years, the cost of housing has gone up significantly. This provides an opportunity for builders who want to enhance the affordability of their community. Affordable housing benefits families and businesses alike. Companies like Barker Management Inc. encourage builders to consider creating projects with affordable housing, either apartments or single-family homes.