Housing abundance can support a strong local economy by increasing the number of resident workers and nearby customers for businesses, restaurants, and shops. An abundant and diverse supply of housing in towns and neighborhoods ensures that municipalities can remain economically strong and culturally vibrant. With increasing competition from online commerce and delivery services, retail storefronts and local restaurants need a growing customer base and worker base nearby in order to thrive.
New homes support the local economy and the non-residential tax base. The average U.S. household spends over $13,000 each year on food, alcoholic beverages, apparel and services, and personal care products and services.22 If half of this were spent within the municipality, a 100-unit housing development could generate well over half a million in local economic activity. In turn this spending would support job growth in the community and additional local and state tax revenue.
Older households generally have less disposable income and spend less on groceries and household goods. Communities with a static housing stock and an aging population may see a decline in the amount of local spending and fewer customers for local businesses.
A shortage of housing has contributed to shortages of essential workers and municipal employees in communities throughout Massachusetts. This is especially acute in seasonal communities where year-round residents face rising housing costs driven by demand for second homes and vacation rentals. While the inability to fully staff local businesses may result in shorter hours and other inconveniences, of greater concern is the inability to fully staff health care facilities, fire, police, and other essential services that if not adequately staffed can have significant negative impacts on communities. Without enough homes essential workers will be forced to endure long commutes or essential jobs will remain unfilled, putting communities at risk. Furthermore, remote workers will choose to live in communities with more abundant or affordable housing.
Reducing zoning barriers to enable the creation of more mixed-use developments and new homes in our urban and village centers helps to create more pedestrian friendly communities where residents can access essential goods and services without traveling outside their neighborhoods. This benefits small businesses and reduces car-dependency.