Econsult Solutions, Inc. was engaged by Edgemere Consulting Corp. on behalf of the Philadelphia Housing Authority to estimate the economic and fiscal impacts of the Opening Doors Initiative, an affordable housing plan to preserve, redevelop, or acquire 20,000 units through 2030. The study quantified one-time impacts from capital investments and recurring impacts from stabilized operations for the City of Philadelphia and the Commonwealth of Pennsylvania.
ESI applied an input-output modeling approach using IMPLAN software to translate development budgets and operating assumptions into direct spending and employment effects. The analysis estimated direct, indirect, and induced impacts for construction activity and for annual operations upon stabilization, reporting output, employment, and employee compensation for Philadelphia and Pennsylvania. Fiscal impacts were estimated by applying effective local and state tax rates to modeled labor income, production, and household spending.
ESI collaborated with Edgemere Consulting and Philadelphia Housing Authority staff to confirm the development pipeline, refine spending assumptions, and review draft findings for consistency with program goals and implementation timing.
The initiative represents an estimated $6.8 billion program to preserve, redevelop, or acquire 20,000 affordable housing units through 2030, subject to funding availability. Findings were developed to support communications with public and private stakeholders regarding the scale of economic activity and tax revenue associated with the initiative.
Quantifiable Results:
- Capital investment impacts: $9.4 billion in cumulative economic impact in Philadelphia and $11.3 billion statewide.
• Employment and earnings during construction: more than 3,770 full-time equivalent job-years and nearly $2.7 billion in employee compensation in Philadelphia; 4,700 job-years and $3.2 billion statewide.
• Annual operations upon stabilization: $104.3 million in Philadelphia and $107.3 million statewide, supporting about 240 to 250 full-time equivalent jobs and $8.0 million to $8.9 million in employee compensation.
• Estimated tax revenues: more than $103.3 million for the City of Philadelphia and nearly $183.3 million for Pennsylvania during construction; about $0.9 million per year for the City and about $2.0 million per year for Pennsylvania upon stabilization.
