Real estate investors purchase houses and commercial property to live in, rent out or renovate. They also contribute to the economic growth of their local community by generating jobs and providing income for ancillary businesses like maintenance firms, construction companies and building supply companies. Their work may even have benefits for the environment. This is because residential developers can often implement green strategies that eliminate eye sores and revitalize surrounding neighborhoods.
Community investing is a subcategory of socially responsible investment involving putting your assets toward improving local communities. It can help foster economic development and amplify your community’s impact on you, your family, your neighbors, and local businesses. Unlike traditional investments, community investments often come with a lower return. Many are made through intermediary lenders such as non-profits, which lend the money to various community programs that meet agreed-upon guidelines. Others are direct loans to individuals or groups like a school, community clinic, or child care center. Another way to invest in your community is through real estate crowdfunding platforms, which allow investors like Steven Taylor LA to pool their capital to purchase a property. They may also offer lower minimum investments, making it easier for individuals to participate. The more money you contribute, the more power you have to make a difference in your local economy. However, it’s important to note that not all community investment options are created equal.
In addition to boosting local economies, economic development can increase housing affordability. When affordable homes are readily available, people of all income levels have more spending power within their communities. This, in turn, can boost local businesses and create new opportunities. Many communities need help to achieve their full economic potential. This includes a need for more resources, including financing, expertise and technology. However, development professionals like Steven Taylor Los Angeles, can help overcome these challenges by leveraging relationships with financial institutions and government agencies to secure funding and resources. They can also provide education and training programs to strengthen community capacity. To successfully unleash a region’s latent economic potential, the EDA must serve as a thought leader, resource provider, capacity builder and coordinator of federal support for place-based economic development. It must also bring rigorous financial analysis to the work it does. This will enable it to best support regions’ varied assets and governing capabilities while addressing their unique challenges.
Increased Tax Revenue
The property tax is the financial backbone of local government, financing schools, police and fire departments, parks, and other services. It’s also a key source of economic development. But with states capturing up to 50 percent of the proceeds of rising property taxes, local voters often needed to catch up. As a result, many lost faith in their governments and were less willing to support new development. That’s why state leaders need to allow localities to diversify their revenue streams, including granting them more leeway to create innovative sales and income taxes for their communities. This would help them weather economic volatility, ensure that everyone gets the benefits of growth—whether wealthy or not—and make local governments more responsive to their residents. As the COVID-19 pandemic has ushered in a boom in remote work, it’s more vital than ever to make this happen.
As people have sought greater space to live, closer proximity to family and friends, and a better work/life balance, jobs and resources have moved out of dense urban areas. This phenomenon, accelerated by Covid, is known as the Great Decentralization. Research shows that small, locally-owned businesses benefit local economies more than big, nonlocal firms. They do this by hiring professionals from the community for services like accounting, legal, supply and maintenance – generating more income in a local economy than their out-of-town counterparts. New housing construction can help drive economic growth in communities by creating jobs. This includes construction jobs, recurring jobs to support operations and ongoing maintenance of affordable homes. This can positively impact the local economy even when the housing market is in flux. Investing in value-add multifamily assets benefitting from this trend can deliver both social impacts and favorable investment returns.