New housing impact
I’m trying to model the impact of a mixed-use development site. The analysis is focused on demonstrating the impact of providing additional residential housing to the local economy. The site would provide 25 new units of affordable housing, with an average household income of set at 80% of median household income. Based on some of the previous posts, I think this means the analysis should report the induced effects of these 25 new households. (It is assumed that the new residents would be coming from outside of the study area, rather than relocating within the region.) Can anyone advise on whether the activity should be a household income change or an institutional spending pattern? I’m also seeking suggestions on what the associated level changes should be under each approach.
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Official comment
Hi,
This would best be modeled by a Household Income Change, especially since you know in which household income group these new residents will fall into. It is important to be sure you have an appropriate household income value.
Household Income should be total new income for residents in the region, including their Personal tax and Savings. The model will automatically deduct personal tax, savings, and imported goods and services. Benefits should also be included as household income in your entry. For a Household Income Change, the model assumes payroll tax has been excluded from your total income entry.
If you are also modeling the impact of the businesses in the mixed-use development site and any of the new residents living in the development also work in the development, this income should not be included in the Household Income Change because it would already be included in the induced effect of the impact for the businesses in the development.
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