Fresh, healthy food access in food deserts can have significant economic benefits for communities, particularly in low-income and under-served areas. Here is what you need to know!

1. Boosts Local Employment Opportunities

When grocery stores or farmers' markets enter food deserts,they often create new jobs, both directly in the stores and indirectly through suppliers, transportation, and related services. Studies show that supermarkets opening in food deserts generate approximately 30–40 new jobs per store, which directly benefits the local economy.

A 2015 report from the USDA found that rural grocery stores contributed about $33 billion in GDP to the U.S. economy, and expanding these stores in food deserts can replicate this effect in under-served neighborhoods.

2. Increases Local Economic Activity

Residents in food deserts often have to travel outside their neighborhoods to buy groceries, which means spending goes to stores outside the community. When fresh food is available locally, these dollars stay in the neighborhood, increasing overall economic activity.

For instance, a study in Pennsylvania’s Fresh Food Financing Initiative (FFFI) demonstrated that new supermarkets in food deserts increase local spending on fresh and healthy food by as much as 60%, showing a shift from spending outside to inside the community.

3. Enhances Property Values

Improved food access has been associated with a rise in property values. A study in Cleveland, Ohio, showed that housing values increased by up to 10% within a mile of a newly opened grocery store, a trend seen in many urban areas where grocery stores have been added.

This increase in property values can also boost local tax revenues, providing more funds for schools, infrastructure, and other community services.

4. Improves Health, Reducing Health-Related Economic Costs

Food deserts are associated with higher rates of diet-related illnesses, such as diabetes and hypertension. Poor health is a major economic drain on communities, as it leads to increased healthcare costs and productivity losses.

A 2017 study published in Health Affairs estimated that every dollar invested in reducing diet-related diseases in food deserts could yield up to $4 in savings on healthcare costs.

5. Attracts Additional Investment and Businesses

Once a grocery store or farmers' market becomes established in a neighborhood, it often attracts other businesses like pharmacies, retail stores, and cafes. This "clustering effect" can improve the economic stability of a neighborhood.

Research from the Reinvestment Fund found that food store investments in low-income areas often lead to further investment, sparking more retail businesses, health services, and job training centers in the surrounding areas.

6. Improves Long-Term Economic Mobility for Residents

Access to fresh, affordable food can improve educational outcomes for children, as healthy diets are linked to better academic performance. This, in turn, can influence economic mobility for future generations.

According to a 2014 Harvard study, children who have access to healthy food and good nutrition show up to 20% higher productivity in their adult careers compared to those with poor early nutrition. This suggests that healthy food access can positively impact long-term earning potential in food desert communities.

Expanding access to healthy food options in food deserts creates a more vibrant local economy, increases property values, and reduces healthcare expenses, all of which benefit the community economically.

Sources:

"Special Report: HFFI Impacts - The Nationwide Success of Healthy Food Financing Initiatives, A Proven, Economically Sustainable Solution" – The Food Trust

“D.C.’s Wards 7 and 8: Addressing Food Deserts” – The Washington Informer

“Food Deserts: Causes, Impacts, & What to Do” – Food Revolution Network

“Moving Beyond Food Deserts in Healthy Food Policy” – Healthy Food Policy Project

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