2015 Study Shows Economic Impact of Affordable Housing at Transit Brings $600 Million in 5 Years
Building and rehabilitating subsidized rental apartments at transit sites in metro Denver generated $543 million in local income, over $54 million in tax and other revenue for local governments, and created 7,345 local jobs between 2009 and 2013, according to Dr. Elliot Eisenberg, President and Chief Economist with the economic consulting firm GraphsandLaughs LLC. Dr. Eisenberg presented his study results to policy makers, housing experts and investors today, emphasizing the economic significance of constructing affordable housing at transit sites. Click here to see the complete report.
“With the cost of shelter in the metro Denver region rising and wages failing to keep up, affordable housing development is more important than ever,” states Eisenberg. “Transit-oriented development is clearly a part of this region’s housing solution.”
Dr. Eisenberg’s study, the third economic impact affordable housing study conducted since 2010, assessed the direct and indirect local one-year economic impact of building 539 new subsidized apartments at transit sites in the Denver region as well as rehabilitating 371 existing apartments under the subsidized housing program. Affordable rental apartment construction had positive, one-year local impacts of $77.8 million in income, $8.7 million in taxes and revenues for local governments and created 1,053 jobs. After the first year, there are annually recurring impacts of $14 million in local income, $1.9 million in taxes and other local government revenue and 222 local jobs. These impacts are the result of new apartment occupancy and residents paying taxes and otherwise participating in the local economy.
The one-year, local impacts of rehabilitating 371 rental apartments under the subsidized housing program generated $30.9 million in local income, $2.8 million in taxes and other local government revenue and 416 new jobs. Therefore, the cumulative impact of both new and rehabilitated housing over a 5-year period is $598 million in income and 7,345 jobs. The study covered Denver-Lakewood-Aurora and Boulder Metropolitan Statistical Areas (MSAs), primarily along transit corridors.
“With the skyrocketing rental market and a 58,000 gap in affordable housing units in the Denver region, it is important to understand how affordable housing is a vital contributor to the local economy. Taking advantage of opportunities along the build-out of our rail system is especially important,” said Aaron Miripol, President and CEO of Urban Land Conservancy (ULC).
The Home Builders Association of Metro Denver (HBA) commissioned this study in partnership with ULC, Housing Colorado, and Mile High Connects, with data provided by The Piton Foundation.