Affordable Housing Shortage Persists for Extremely Low-Income Households
The National Low Income Housing Coalition recently released its annual report, The Gap: A Shortage of Affordable Homes. Their analysis found that there are only 37 affordable and available rental homes exist for every 100 extremely low-income renter households nationwide. These renter households also are more likely to be severely housing cost-burdened, spending more than half of their incomes on rent and utilities. According to the report, 7.8 million, or 71 percent, of the nation’s 11 million extremely low-income renter households fall into the severely housing cost-burdened category.
The report calls for increasing investments in housing solutions for the lowest-income people such as the national Housing Trust Fund, Housing Choice Vouchers, and public housing; protecting the existing supply of affordable homes; expanding and improving the Low Income Housing Tax Credit so it serves more of the lowest-income families; and implementing a renters’ tax credit that targets low-income renters. Other key takeaways from the report include:
- Only 7.4 million rental homes are affordable and available to the nation’s 11 million extremely low-income renters, resulting in a shortage of 3.6 million rental homes.
- Only 58 rental homes are affordable and available for every 100 households with incomes at or below 50 percent of the AMI, while the numbers increase to 94 and 102 affordable and available homes for every 100 renter households at or below 80 percent and 100 percent of the AMI, respectively.
- The housing shortages for extremely low-income renter households range from 5,799 rental homes in Wyoming to over 1 million in California.
- Nevada has the lowest supply, with only 19 affordable and available homes for every 100 extremely low-income renter households. Wyoming has the greatest supply at 66 affordable and available homes for every 100 households.
- Of the 50 largest metro areas, Orlando, Fla., only has 13 affordable and available homes for every 100 extremely low-income renter households, while Las Vegas is not far behind with only 14 affordable and available homes for every 100 households. Pittsburgh has the great supply, with 51 homes for every 100 extremely low-income renter households.
- Just over a quarter of extremely low-income renter households are seniors, while 22 percent are households with a disability. In addition, 39 percent of extremely low-income renters are in the labor force and another 5 percent are students or single-adult caregivers for a young child or household member with a disability.
- Racial disparities also exist, with black, Native American, and Hispanic households being more likely than white households to be extremely low-income renters