The Dilemma Of Where To Live

(Post 2 of 4 for Affordable Housing)

It is Sunday! This is one of our blog and podcast dual release weeks. Last week we learned about what Affordable Housing is and why it is a prominent contemporary issue. This week we will build on what was discussed and look at the current state of Affordable Housing.  

Let’s start by backing it up a bit in history. Because while this is a current hot topic, the need for affordable housing is not new. The affordable housing crisis in the U.S. was first addressed in the 1930s, when the Great Depression hit the globe and an act of Congress in 1934 created the Federal Housing Administration to make the mortgage insurance program available and alleviate the effect that Great Depression has had on the public’s ability to purchase homes. Since then, many new programs have been introduced and policies modified to assist those struggling to afford housing due to circumstances, location, or other factors. 

The current affordable housing landscape came to a head due to a combination of factors including overcrowding in cities, stagnant wages, and the consistent rise in cost of living. It is estimated that only 35 affordable rental homes exist for every 100 extremely low income renter households and of those, not all of them are available since higher income groups (very low income, low income… etc.) can also occupy the housing available to extremely low income households, making them unavailable to the income group that needs them. 

Based on the available data in the United States, homeowners are less likely to suffer from housing cost burdens than renters. As of 2017, an estimated 22 percent of homeowners suffer from housing cost burdens while a whopping 47 percent of renters suffered the same burden. These numbers are a stunning reminder that almost a quarter of the homeowners in the states are suffering from high housing costs and almost half of the renter households are as well. The data also shows the numbers disproportionately affect those at the lowest income level. With an estimated 83 percent of households with an annual income below $15,000 considered burdened by housing costs. 

These numbers show that the housing cost burden is widespread throughout the United States and is a prominent reality today. 

That is it for our blog for the week of 9/8! Next week we will look at the impacts of affordable housing and possibly some solutions. As always, find us on social media and tell your friends about us. And tell us how we can improve the program for you! Leave a comment or write to us, we love to hear from our readers and listeners. 

Thank you for joining us and have a wonderful Sunday night.

Project Planning Green

Resources: 

• A Brief Historical Overview of Affordable Rental Housing: https://nlihc.org/sites/default/files/Sec1.03_Historical-Overview_2015.pdf
• The U.S. Has National Shortage of More Than 7.2 Million Affordable And Available Rental Homes For Families Most In Need (April, 2019): https://nlihc.org/news/us-has-national-shortage-more-72-million-affordable-available-rental-homes-families-most-need
• The Gap- A Shortage Of Affordable Homes, 2018: https://reports.nlihc.org/sites/default/files/gap/Gap-Report_2018.pdf
• Rental Burdens: Rethinking Affordability Measures: https://www.huduser.gov/portal/pdredge/pdr_edge_featd_article_092214.html
• Nearly A Third Of American Households Were Cost-Burdened Last Year (December, 2018): https://www.jchs.harvard.edu/blog/more-than-a-third-of-american-households-were-cost-burdened-last-year/