The Council of Large Public Housing Authorities (CLPHA) sought an assessment of the economic impacts of public housing authorities (PHAs) in diverse cities across the United States, exploring how public housing investments impact local economies, job creation, and tax revenues. The scope of ESI’s research included analyzing the economic activity generated by PHAs, the benefits to local economies, and the broader implications for public policy and investment in public housing.
ESI conducted research into PHAs in various locations across the United States (Akron, OH; Charlotte, NC; Kansas City, MO; Los Angeles, CA; New York City, NY; Oklahoma City, OK). To complete the analysis, ESI utilized a comprehensive analytical framework, utilizing key research methodologies including:
Data Collection: Gathering data on capital spending, operational expenditures, and housing assistance payments from six PHAs.
Economic Impact Analysis: Evaluating the direct, indirect, and induced economic impacts of capital spending, operations, and housing assistance payments by PHAs.
Scenario Modeling: Estimating the economic activity generated by PHA investments and operations using the IMPLAN input-output modeling framework.
Stakeholder Engagement: Input was provided from PHAs of cities across the country including detailed financial and operational data and capital spending, as well as insights on housing assistance programs; local government officials who offered perspectives on the economic and social impacts of public housing in their communities, and leaders of community organizations who contributed insights on the benefits of public housing to residents and locales.
The analysis demonstrated that every $1 million spent on capital investments generated $1.89 million in economic activity and supported 11 full-time jobs. Similarly, every $1 million spent on operations and vouchers generated an additional $1 million in local spending and supported 12 full-time jobs.
The results supported CLPHA’s efforts to advocate for increased federal investment in public housing by demonstrating the economic benefits generated in communities through operating and expanding public housing programs.
The study found that $4.5 billion in direct capital spending by the six PHAs between FY 2013 and FY 2017 generated $7.6 billion in economic activity and supported 7,600 full-time jobs. Additionally, PHA operations and housing assistance payments had a $4.2 billion direct annual economic impact, supporting diverse industries and local employment.