Dive Brief:
- Affordable housing development in Oklahoma is producing “significant economic and fiscal benefits” for the state, according to an April 30 Urban Institute report.
- The study found that 45 multifamily developments built between 2019 and 2023 have contributed more than $800 million in economic output. That impact could exceed $1 billion in the next decade, outpacing the $295 million in state and federal tax credit equity used to develop them, the researchers say.
- Every dollar of tax credit equity allocated for the 2,667 units was tied to $3.40 in total economic benefits and added $1.95 in value to the state’s economy, according to the report.
Dive Insight:
Oklahoma is in the midst of a worsening affordable housing shortage, an Oklahoma Policy Institute report last year found. The state needs roughly 85,000 rental homes to support its extremely-low-income renters, those who spend more than 50% of their income on rent.
The surging cost of building materials and labor shortages are contributing to the lack of affordable housing options in the state, the Oklahoma Policy Institute said, calling for increased state support.
“Public grants help bridge the financial gap and help developers keep rents affordable,” the OPI report states.
The 45 affordable multifamily developments the Urban Institute examined spurred more than 4,000 temporary construction jobs and around 57 unique jobs for people involved in property operations, generating $276 million in labor income during construction. The additional housing is also expected to generate $126 million in tax revenue over 10 years of operations, according to UI.
“State and local policymakers deciding how to allocate scarce resources need to understand both the social benefits and economic returns of affordable housing investment,” UI said in a news release.
