The Importance of Affordable Housing: Investing in Single-Family Properties
Did you know that established Maine homes sit on larger lots on average than the housing in most other states in the country? While living on a huge lot of undeveloped land has its perks, you may find that you have more land than you need.
At Dirigo Development, we're dedicated to purchasing available land and investing in affordable housing. If you're ready to sell your land and empower your community, we may be the right partner for you.
Why does affordable housing matter? What is the value in developing single-family homes at affordable prices?
Read on to learn about the importance of investing in affordable single-family homes.
Rent Is On the Rise in Maine
Affordable housing has been difficult for Americans to secure across the country. Renters aren't faring any better in Maine than they are in other states. In fact, nearly half of Maine residents are struggling to afford rent.
Ideally, rent should cost no more than one-third of your annual household income. When it starts creeping into the territory of forty, fifty, and even sixty percent, affording other basic needs, like transportation, food, and healthcare, becomes increasingly difficult.
In cities like Portland, many residents are even struggling to afford two-bedroom apartments. While a studio or one-bedroom apartment may work for singles and young adults, they aren't suitable for families who have to stretch paychecks even further.
This is why we've put as much of our energy and resources as possible into investing in single-family properties. This will provide stable housing for parents with children and multi-generational families.
Stable Housing Creates Opportunities
Why does stable housing matter? Research has found that housing instability can lead to compounded issues, including:
poor education and chronic absenteeism
worsening health outcomes
limited economic mobility
On the flip side, stable access to housing creates opportunities and positive results. For example, children with a safe and consistent home to return to miss fewer days of school. The reduction of stress and chaos in their home lives can lead to better focus, better grades, and more opportunities moving forward.
Affordable housing can also reduce the rate of homelessness in a community. Unhoused individuals are often locked in a cycle of poverty. Without a residence to list on job applications, they often cannot secure a job or gain access to healthcare, which leads to long-term poverty and health issues.
Access to affordable housing can allow your community as a whole to thrive.
Affordable Housing Boosts the Economy
The success of the individual can lead to the success of your community when fostered on a large scale. Because affordable housing creates more opportunities, it can also boost your local economy in a number of ways.
For example, thriving metropolitan areas like Portland often see the biggest hike in rental prices. This is often affordable for white collar workers in fields that require robust educational backgrounds. However, it isn't as affordable for blue collar workers or entry-level employees.
When rent increases push out the working class, it can lead to a shortage of labor and service. This can have the ripple effect of causing small businesses like restaurants to struggle. It can also lead to disruptions in warehousing and supply chain logistics.
In order to maintain a diverse and self-sustaining economy, workers must be able to afford the cost of living. Affordable housing gives lower-income workers access to communities where their labor is needed. Plus, it allows them to become more active consumers by ensuring that more of their income is disposable.
Community Planning Matters
Affordable housing must take into account the full cost of living, not just the cost of rent. This includes things like:
access to public transportation vs the requirement of cars
access to jobs that provide a living wage and benefits
the proximity to amenities like hospitals, grocery stores, and schools
Plus, the quality of housing matters. Affordable housing can't create equity when the housing is in poor condition or the neighborhood has a high crime rate. Affordable also can't create equity when it's isolated from necessary amenities or at risk of going up in price.
At Dirigo Development, we don't build isolated single-family housing. We develop entire communities in areas with a growing population and a demonstrated need for affordable rental properties.
Section 8 Housing Is Limited
You may be wondering why house investors might invest in affordable homes when we have programs like Section 8. Isn't affordable housing already taken care of by the federal government?
The truth is that securing a Section 8 voucher is difficult in 2023. Finding a landlord who will accept a Section 8 voucher is also difficult, and an estimated 30% of families are facing hurdles finding ways to make use of this government support.
Believe it or not, affordable housing is a sound investment. There is no shortage of tenants who are looking for affordable single-family homes. Having a real estate portfolio that includes affordable housing can also yield significant tax credits.
It is no longer enough to expect government programs like Section 8 to address our housing crisis. Investing in affordable housing is good for both house investors and the community.
Investing in Affordable Housing Development Makes a Difference
Do you have land that you're ready to sell? Consider selling to Dirigo Development. Together, we can make affordable housing available to families across the state.
Contact us today. Whether you want to sell land or learn about investing in single-family properties that are affordable for your community, we're here to help. Together, we can create more equity and opportunity in Maine.