20,000 new affordable homes in Wales would reap £3.6bn in community value, report finds

These jobs would include 6,293 direct construction roles and 7,908 positions in the supply chain, as well as 2,065 traineeships and 1,245 work placements, providing opportunities for young people and those entering the labour market for the first time.

Once the homes are operational, a further 2,690 FTE jobs per year would be sustained across management, maintenance and service roles.

These roles contribute £114m in gross value added annually. The report highlights that “for every £1 in value created, an additional 90p is generated in the Welsh economy”, demonstrating a strong multiplier effect.

In 2024-25, housing associations spent £1.49bn, with 85% retained in the Welsh economy.

The researchers believe that associations are “proven delivery partners with a strong track record” and are responsible for delivering 75% of all additional social and affordable homes in this Senedd term.

Financial benefits to households through affordable rents and reduced energy bills also play a key role in value creation. Energy savings alone are estimated at £109m over 30 years.

Lower housing costs free up income, improving household financial stability and enabling tenants to spend more in their local communities, which further supports economic activity.

The combination of lower costs and increased security also contributes to residents’ overall well-being, reducing stress and supporting mental health.

The report argues that reducing overcrowding, frequent moves, insecurity and fuel poverty also helps prevent illness and reduce demand on public services.

It estimates £2.2bn in public sector savings over 30 years, with around £1bn directly attributed to reduced temporary accommodation and homelessness costs.

During the construction phase, an estimated £344.7m would be saved in public spending, with a further £1.8bn over the 30-year period. Reduced illness from poor-quality housing would also generate material NHS savings.

The report also argues for public investment generating a growing economic impact for specific communities.

Minority ethnic groups are overrepresented among social tenants, making up 8% of tenants compared with 6.2% of the population. Disabled people are also overrepresented, comprising 38% of social tenants compared with 21% of the population. The report argues that building affordable homes is “not just a question of numbers, it’s a matter of fairness, equity and dignity”.

ClwydAlyn, one of CHC’s member housing associations, is cited as providing a practical illustration of these impacts.

Its engagement included 46 online events, 18 in-person meet-ups with nearly 350 attendees and board member sessions strengthening tenant participation. The report notes that such activity contributed directly to communities by supporting regeneration, tenancy sustainment and local engagement.