Erecting factories next to a residential community will surely have an impact on the quality of living in the area.
First, let's take a look at the advantages. The presence of factories will definitely provide jobs that will address any unemployment concerns a community may have. It will then increase the purchasing power of the residents, which will eventually benefit the local economy. Crimes caused by poverty may lessen as a result.
Now, let us consider the disadvantages. Depending on the factory, a community may see an increase in health concerns as occupational hazards become prominent among locals employed in these factories. Environmental concerns will begin to surface as chemicals and other such by-products stream into bodies of water, affect the quality of air, and/or cause significant damage to soil. The very construction of said factories could have also entailed the cutting down of trees in the area. Given these, the health of residents—not only of workers—will take a beating along with the environment. Another form of pollution which may threaten the locality is noise due to the constant operation of heavy machinery and the volume of workers congregated in the surrounding area.
In the end, a community must weigh the pros and cons before considering building factories next to residential areas. Economically, they add value to a region. However, their environmental impact undoubtedly can create long-term problems that will affect a community's life and longevity.