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For developers, building high-quality affordable housing only makes financial sense if there is an immediate return on investment. This starts by increasing the Low-Income Housing Tax Credit (LIHTC)—the federal subsidiary that finances affordable housing, and is what has propelled many affordable housing developments around the United States. The problem with the LIHTC is that its tax credit is too low to allow developers to create high-quality affordable housing and still make a profit. Even if the architectural and design costs of affordable housing are less than those of traditional housing, the core costs are the same: builders pour foundations, frame homes, wire electricity, and lay pipes for heating, bathrooms, and kitchens the same way. Those costs cannot be avoided.

Unless there is private financing or the developer gets the land for free (donated by the municipality, underwritten by a foundation, or otherwise financed), building affordable housing is bad business. The market doesn’t justify building in low-income neighborhoods. But we can’t leave things as they are. Beyond the environmental impact of low-quality materials, low-quality housing developments pose threats to human health and the human condition. According to an article in the US National Institutes of Health’s National Library of Medicine, “Poor housing conditions are associated with a wide range of health conditions, including respiratory infections, asthma, lead poisoning, injuries, and mental health [problems].”11 And they have a clear impact on the human condition. Tenement-style housing developments are packed with folks who haven’t been able to escape the yoke of poverty, and this is often passed from generation to generation.12 Residents need to be safe and have the sense of self-worth that living in decent housing conditions can bring. The next generation of housing needs to incorporate green spaces to help lift the spirits and transform the futures of residents. This will help break the cycle of poverty and offer tremendous benefits to human health and the economy.

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