Transforming Housing for Individuals with Intellectual and Developmental Disabilities In New York State: A Study on AI Technology and Cost-Benefit Analysis

Abstract

The lack of accessible, affordable housing for individuals with intellectual and developmental disabilities (IDD) remains a significant challenge, exacerbating existing social, economic, and healthcare disparities. This thesis explored the intersection of artificial intelligence (AI) and modular construction as a potential solution to improving housing accessibility, affordability, and quality of life for adults with IDD in New York State. I used a mixed-methods approach to analyze traditional affordable housing models alongside innovative AI-integrated solutions, evaluating their financial feasibility and long-term impact on residents and caregivers. A comparative cost-benefit analysis (CBA) revealed that while traditional affordable housing projects require significant upfront investment, they fail to address ongoing care inefficiencies and accessibility barriers. By contrast, AI-enhanced housing, incorporating smart monitoring, automated care systems, and adaptive living environments, demonstrated significant cost savings and quality-of-life improvements. The AI-integrated model I developed reduced caregiver turnover, minimized medical errors, and lowered legal liabilities associated with neglect and injury, leading to an estimated per-resident annual savings of $13,060 for level 1 needs, $28,730 for level 2, and $117,550 for level 3 individuals requiring intensive support. Financial projections indicated that AI-enhanced modular housing, despite higher initial investment, achieves a more substantial return on investment (ROI), a shorter payback period, and greater long-term sustainability compared to conventional models. As calculated in January 2025, the AI-supported housing project's net present value (NPV) was $12,885,519, far exceeding the $963,019 NPV of the traditional model. These findings highlight the urgent need for policy reform to support AI-driven innovation in affordable housing. Ultimately, this research underscores the critical role of technology in bridging the accessibility gap between current housing options and new affordable housing for disabled individuals, ensuring that adults with IDD can live with dignity, independence, and the support they need to thrive. Integrating AI and modular construction can build a more inclusive and financially viable future for housing for individuals with disabilities.