The Intersection of Affordable Housing and Health

Does Where You Live Impact Your Health?

The answer is a resounding “yes.” A vast body of research has shown that where and how people live directly influences their physical and mental well-being. This connection goes beyond healthcare systems—it’s rooted in social, economic, and environmental conditions often referred to as the social determinants of health.

Housing is central to this equation. Where a person lives often determines their access to education, jobs, healthcare, healthy food, and other resources that shape overall quality of life. Unfortunately, for low-income populations, limited access to affordable housing can severely undermine health outcomes.

At Stearns Bank, we understand the power of housing as a foundation for better health. By financing affordable housing projects that deliver safe, healthy, and stable living environments, we help create opportunities for individuals and families to thrive. This blog explores the critical connection between housing and health and how Stearns Bank is driving positive change through health-focused affordable housing.

The Link Between Affordable Housing and Health Outcomes

Housing affordability is a critical issue in the United States. According to the U.S. Census Bureau, nearly half of renters are cost-burdened, spending more than 30% of their income on housing. This financial strain leaves limited resources for essential health services, medications, nutritious food, and child development needs.

For many families, the lack of affordable housing leads to difficult trade-offs. A parent may choose to delay medical care or reduce their grocery bill just to cover rent. Research from the National Institute of Health shows that people living in unaffordable housing are more likely to experience poorer self-rated health, higher rates of hypertension, arthritis, and mental health conditions like anxiety and depression.

The lack of affordable housing also forces some families into substandard living conditions. Overcrowded, unsanitary, and unsafe housing environments expose residents to a variety of health risks, including:

• Respiratory illnesses caused by mold or poor ventilation.
• Developmental issues in children due to lead exposure from old paint or pipes.
• Increased stress from unstable housing situations, such as the constant threat of eviction or foreclosure.

When housing insecurity leads to homelessness, the consequences become even more severe. Homeless individuals often face chronic health conditions that are difficult to manage without stable shelter or access to care.

Positive Health Outcomes from Stable, Affordable Housing

While a lack of affordable housing contributes to negative health outcomes, providing stable and affordable housing can yield significant benefits. Research consistently shows that improving housing affordability has a ripple effect on individuals, families, and communities.

Lower Stress and Anxiety

A stable living situation enables people to sleep better at night and reduces worries, such as whether they have enough money to pay their utility bills or stay in their home. For example, research shows that homeowners experiencing mortgage delinquency or foreclosure are at higher risk for mental health issues such as psychological distress, anxiety, depression, substance use and suicide. Conversely, other studies showed that eviction moratorium protections during the COVID-19 pandemic were associated with a lower risk of psychological distress, anxiety and depression.

Increased Access to Preventative Care

A study by the Center for Outcomes Research and Education found that when low-income households move into more affordable and stable housing, they experience 20% more primary care visits and 18% fewer emergency department visits.

Improved Management of Chronic Illness

Access to preventative care reduces the risk of developing chronic illness, but housing quality also plays a role. For example, Health.gov says that lead exposure from paint and pipes can seriously affect children’s nervous system and cognitive development, cold indoor conditions are associated with high blood pressure and respiratory conditions, and mold growth increases the likelihood of asthma.

How Healthy Living Environments Contribute to Better Health

To truly make an impact on community health outcomes, housing must be not only affordable, but also foster healthy lifestyles. A dilapidated, bug-infested building on the outskirts of a heavily polluted industrial area does not support health, no matter how low the rent may be.

Affordable housing developers — and the lenders financing them — can make a huge positive impact by pursuing community investment strategies to create environments that promote well-being, reduce exposure to health hazards and encourage active, healthy lifestyles.

Key Features of a Healthy Living Environment

A healthy living environment includes a mix of the following features:

• Climate control: In most areas of the country, functional heating and air conditioning are necessary to maintain livable temperatures, particularly in climates with extreme temperatures.
• Clean, well-kept facilities: Staying healthy requires a sanitary home free of pests, water leaks, mold and broken fixtures that can lead to injuries.
• Access to green spaces and recreation: Outdoor communal spaces provide opportunities for physical activity and time in nature, which has proven health benefits.
• Proximity to healthcare facilities: People are more likely to visit the doctor for preventative care if they do not have to travel far.
• Clean air and water: Location is a critical determinant of whether residents will have access to clean air and water, but landlords also must provide proper ventilation and filtration.

Affordable housing developments that prioritize these features can make a significant impact on the lives of residents, as well as the surrounding community.

The Broader Impact of Health-Focused Affordable Housing

The benefits of health-focused affordable housing extend far beyond direct impacts on the people who reside within these developments. Greater access to healthy and affordable homes can lead to broader social and economic outcomes, ultimately strengthening surrounding communities and beyond. When a developer builds a new affordable housing development as part of an equitable development initiative, it creates ripple effects throughout a community and society at large. Providing low-income residents with safe, healthy, stable and affordable housing can lead to the following outcomes over the long term:

• Reduced healthcare costs: Healthy living environments reduce health complications, and access to affordable housing enables residents to invest in preventative care — decreasing the likelihood of developing conditions that require expensive procedures and emergency room visits. This reduces costs paid by insurance providers, Medicaid and Medicare, which benefits all healthcare consumers.
• Increased productivity: Healthy workers are more productive workers, creating benefits for businesses as well as their investors and customers.
• Stronger, more resilient communities: People with stable housing are more likely to be engaged in their communities and invested in improving the quality of life for people around them.

As these outcomes show, lenders can contribute to sizeable impacts when they consider the health impacts of their financing decisions and prioritize projects that contribute to healthier communities.

Lenders Can Play a Role in Driving Positive Health Outcomes

The benefits of high-quality, affordable housing are almost too numerous to count: improvements in life expectancy, reductions in chronic disease and hospitalizations, lower risks of mental health conditions, and multiple ripple effects throughout communities.

It’s important for commercial real estate lenders to consider how their financing decisions make a difference. Lenders that support community investment programs and equitable economic development have the power to contribute to better health outcomes. Exploring opportunities to fund health-focused affordable housing can enhance lives and communities while supporting business growth.

Stearns Bank’s Role in Health-Focused Affordable Housing

At Stearns Bank, we believe in making a tangible impact through the projects we finance. Affordable housing developments that address social determinants of health are a critical part of that mission. When we evaluate projects, we consider how the housing will support residents’ well-being. Does it provide access to healthcare? Are there green spaces for recreation? Is the air and water quality safe? These questions help guide our lending decisions.

We also recognize the importance of partnerships. Collaborations with nonprofits, government agencies, and community organizations often enhance the impact of health-focused developments. Whether it’s including on-site healthcare services or building in areas with access to public transit, we work alongside developers to ensure projects create lasting benefits for residents.

If you’re planning an affordable housing project with a focus on health, we’d love to learn more.