Effects of Unaffordable Housing in North Carolina and Why Housing Should Be Made Affordable

North Carolina has a housing problem. This problem is particularly severe for those who rent. As of 2019, around 29% of North Carolina’s rental households were cost-burdened, overcrowded, and lacked essential facilities.  The number of cost-burdened households continues to increase as the economy suffers due to the Covid-19 pandemic. For years, low-income households and middle-income earners are increasingly getting burdened with high-income earners being spared the high cost of housing. Other groups that are severely burdened by the housing crisis in North Carolina are millennials, seniors, and disabled individuals. A report by the Center for Urban and Regional Studies at The University of North Carolina identifies areas in North Carolina with extreme housing needs.

The report suggests that improving housing conditions in the state will help to reduce overcrowding and lessen the housing cost burden on middle-income and low-income earners. Furthermore, addressing the housing problem will ensure residents lead healthy and productive lives. To solve this problem, state and local governments of North Carolina will need to combine efforts and reverse the effects of the housing crisis in the state.

The negative impact of unaffordable housing in North Carolina

Lack of proper and affordable housing affects individuals, families, and communities in many ways. That’s why areas with a housing problem experience a lot of social problems, unemployment, lower purchasing power, and a negative effect on surrounding property values. So, how exactly does unaffordable housing affect society?

• Rising crime rates—Cost-burdened and overcrowded neighborhoods in North Carolina experience higher levels of violent crimes, drug-related crimes, and property crimes. Conversely, neighborhoods with quality and affordable housing have lower levels of crime. Studies have shown that the introduction of affordable housing helps to lower crime.
• Mental health issues—Living in poor housing is likely to cause mental health issues. Research has shown that children living in poor housing are more likely to have mental health problems compared to their peers living in good-quality and safe housing. Good-quality housing promotes good mental health.
• Substandard housing – People who cannot afford good-quality housing opt for less expensive housing which is often substandard.
• Social segregation—Lack of quality and affordable housing leads to social segregation, whereby those who can afford good housing get concentrated in one area and those who cannot afford get isolated in neighborhoods with lower housing quality.
• Adverse health effects—Poor housing comes with issues like overcrowding, poor ergonomics, inadequate lighting, contaminated water, and many more, all of which lead to adverse health effects.

Why affordable housing is important in North Carolina:

• Affordable housing builds sustainable communities

There has always been a connection between decent and affordable housing and thriving communities in the U.S. Places with adequate and affordable housing tend to have vibrant communities due to improved infrastructure, low crime rate, higher standards of living. Good examples are places like Kansas City, Birmingham, Louisville, Buffalo, NY, and Greenville, SC. These areas are known to have vibrant communities as a result of well-designed and affordable housing developments. Quality and affordable housing improves living standards, encourages social connections, attracts investors, and lowers crime rates. There are countless benefits that come with decent housing. By addressing the housing gaps that exist in North Carolina, it can bring a substantial positive impact on the surrounding communities. With proper housing, issues like overcrowding, crimes, and homelessness will be a thing of the past. Moreover, affordable housing will promote the overall well-being of residents in the state. Therefore, it’s the responsibility of local governments and other state bodies tasked with the responsibility of improving housing in North Carolina to work with various stakeholders to provide solutions to existing and potential problems regarding housing.  

• Promotes diversity

In cities with proper and affordable housing, you’ll find people of different backgrounds in terms of education, profession, culture, and social-economic status. In North Carolina, areas like Cary, Hickory, Chapel Hill, Shelby, and Apex are the most affordable to own and rent housing. These areas tend to be more diverse because most residents have access to stable and quality housing. This is the exact opposite in cities with inadequate and unaffordable housing. Good examples of cost-burdened and overcrowded areas in North Carolina that rank poorly in terms of diversity include Piedmont, Wilkes, Coastal Plain, and Brunswick.   The communities in areas with inadequate housing rarely appreciate diversity and often fail to meet the needs of families living under various circumstances. This is one of the causes of rising poverty levels, segregation, and distress in some parts of North Carolina. On the contrary, communities that live in areas with adequate and affordable housing tend to appreciate diversity which leads to reduced racial tension and discrimination. By addressing housing gaps in North Carolina, it will not only provide residents with access to stable housing but will also promote culture sensitivity, fairness, and tolerance to diversity.

• Job creation

Areas with quality and affordable housing have more and better job opportunities and the jobs in these areas often pay well. That’s why areas like Chapel Hill, Mooresville, and Hickory have more job opportunities compared to those areas with inadequate housing. Decent and affordable housing helps to create more jobs and stimulates the local economy in the following ways:

• Attracts investors who generate job opportunities in property management, construction, engineering, architecture, and other industries.
• Boosts consumer spending since many people won’t be burdened with housing costs which means they’ll have more disposable income to spend.
• Increases job security
• Generates more tax that helps to improve infrastructure in the localities
• Encourages social connections that lead to more job opportunities and tolerance for diversity
• Lowers the risk of evictions and foreclosures

Generally, proper housing allows residents to live a good quality of life and increases their chances of succeeding professionally and in other areas of life. When people are able to afford housing, they can save more money for healthcare and nutritious food. It also eliminates the risks associated with poor quality housing and homelessness such as mortality, hunger, unintentional injuries, musculoskeletal disorders, and many more. Access to decent and affordable housing fosters greater self-esteem in individuals and families, increases a sense of security, and provides residential stability.