Towards Sustainable Affordable Housing under Smart Growth: Financial Models and Policy Implications

Smart Growth (SG) development is often associated with urban consolidation, promoting more compact city forms and higher-density living.

While this approach aims to improve efficiency in land use and infrastructure, it also seeks to accommodate low-income populations through the provision of affordable housing within metropolitan areas. However, increased density may contribute to rising land values due to the limited availability of developable land. Consequently, housing developers face escalating land costs, while low-income households may encounter restricted housing choices and increased rental burdens.

This study draws upon constructs developed through a review of selected literature on the Smart Growth concept, alongside key criteria relevant to achieving Affordable Quality Housing, particularly in relation to quality of life indicators. It examines a range of successful financial models for affordable housing and identifies essential considerations for ensuring social, economic and environmental sustainability in their design.

The research further explores how such models can support low-income households in achieving greater housing stability and, over time, facilitate pathways towards home ownership. The study concludes by outlining a set of critical recommendations and practical strategies for the development of an Affordable Quality Housing model within the Smart Growth framework. As a contribution to the field, the proposed model is intended to offer an alternative approach for housing developers, particularly in contexts where reliance on government subsidies is limited, thereby supporting broader efforts to deliver affordable housing at scale.

Keywords: Smart Growth, Affordable Housing, Low-Income Households, Housing Affordability, Sustainable Development.