This story was originally published in Affordable Housing Finance.
No state or major metro area has an adequate supply of affordable and available homes for extremely low-income renters—households at or below the poverty guideline or at 30% of the area median income (AMI), whichever is higher—according to the National Low Income Housing Coalition (NLIHC).
In its “The Gap: A Shortage of Affordable Homes 2019,” NLIHC says only 37 affordable and available homes exist for extremely low-income renters. 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%, of the nation’s 11 million extremely low-income renter households fall into the severely housing cost-burdened category.
The report calls for increased federal investments in housing programs for households who need it the most, including the National Housing Trust Fund, the Housing Choice Voucher program, and public housing. It also encourages the expansion and reform of the low-income housing tax credit as well as a renters’ tax credit for those with the lowest incomes.
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% of the AMI, while the numbers increase to 94 and 102 affordable and available homes for every 100 renter households at or below 80% and 100% 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% are households with a disability. In addition, 39% of extremely low-income renters are in the labor force and another 5% 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.
This story was originally published in Affordable Housing Finance.