Housing cost-burden — paying more than 30 percent of one ’ s income on housing-related costs — disproportionately impacts lower income families . In turn , these families have considerably fewer resources available to invest in their futures , save for retirement , spend on their children ’ s educations , start a business , etc . In that way , housing affordability can contribute to keeping families in poverty and , over the long term , contribute to intergenerational poverty .
Because housing affordability is measured by the cost of housing relative to income , solutions to make housing more affordable should include solutions oriented toward promoting the development of affordable housing as well as increasing the earning potential of low- and moderate-income families . Making housing cheaper allows households to afford housing ; raising incomes allows households to better afford everything .
Targeting available housing subsidies to complement other investments can result in an impact greater than an investment in housing alone . Reducing regulatory restrictions on multifamily housing development , streamlining processes to bring new units online , and developing deeper pools of capital to support housing development can help match increased supply with increased demand , keeping rent prices more affordable . Directing resources for neighborhood revitalization ( and abating vacant housing ) also provides new home owning and renting opportunities , which helps to meet the demand for more units .
Accessing responsible conventional mortgages , improving financial literacy , and rehabilitating credit can help individual families and households access homeownership when they otherwise might not be able to . Coordinating housing efforts with broader strategies that equip individuals with relevant and marketable skills and higher earnings is a comprehensive approach to community service and community development . Setting a course for growing Central Indiana ’ s economy — and positioning housing strategies alongside those goals — is likely to have a greater impact on families than examining housing strategies on their own .
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