Report Shows the Economic Impact of Affordable Housing at Transit Oriented Development in Metro Denver brings over half a Billion dollars to local economy between 2009 and 2013
The latest affordable housing report presents estimates of the local impact of building 539 new, and rehabilitating 371 rental apartments under a subsidized housing program in the Denver-Aurora-Lakewood and Boulder Metropolitan Statistical Areas (MSAs). Conducted by Chief Economist Elliot Eisenberg, Ph.D., of the economic consulting firm GraphsandLaughs LLC, this is the third metro Denver study since 2010 demonstrating how affordable rental home building creates substantial local economic activity, including new income, local jobs, and additional revenue for local governments.
The data in the study indicates that in year-one, the economic impacts of building 539 new affordable rental apartments at TOD in metro Denver provides $77.8 million in local income for residents, $8.1 million in taxes and other revenue for local governments, and 1.053 local jobs. Dr. Eisenberg estimated the annually recurring impact beyond the first year is $14 million in income, $1.9 million in taxes, and 222 jobs. Rehabilitating 371 affordable rental apartments equates to $30.0 million in local income, $2.8 million in taxes and government revenue, and 416 local jobs.
The cumulative impact of both new and rehabilitated housing over a 5-year period is $598 million in local income and 7,345 local jobs.
The National Association of Home Builders has developed a model to estimate economic benefits which captures the effect of the construction activity itself, the ripple impact that occurs when income earned from construction activity is spent and recycles in the local economy, and the ongoing impact that results from new homes becoming occupied by residents who pay taxes and buy locally produced goods and services. To fully understand the economic impact residential construction has on a local area, it is important to include the ripple effects and ongoing benefits.
New Subsidized Rental Apartments:
The estimated one-year local impact of building 539 new subsidized rental apartments in metro Denver include:
- $77.8 million in local income
- $8.1 million in taxes and other revenue for local governments
- 1,053 local jobs
The additional, annually recurring impacts of building 539 subsidized rental apartments in metro Denver include:
- $14 million in local income
- $1.9 million in taxes and other revenue for local governments
- 222 local jobs
Rehabilitated Subsidized Rental Apartments:
The estimated one-year local impacts of rehabilitating 371 rental apartments under the subsidized housing program in metro Denver include:
- $30.9 million in local income
- $2.8 million in taxes and other revenue for local governments
- 416 local jobs
The complete report can be found here: 2015-Metro Denver TOD Affordable Housing study