Nationally, there is a shortage of more than 7 million affordable homes for our nation's 11 million-plus extremely low-income families.
Housing affordability is central to other national priorities, like health care, food security, education and more. Yet the gap between rents and incomes is growing, and this is compounded by unprecedented threats to federal housing assistance. Proven solutions to ending homelessness and housing instability exist – what’s missing is the political will to provide resources that will put these solutions into practice in communities across the nation.
There is no state or county where a renter working full-time at minimum wage can afford a two-bedroom apartment.
Seventy-five percent of all extremely low-income families are severely cost-burdened, paying more than half their income on rent.
This is a problem! Every state and every community is impacted. Families have few options. Each year the shortage gets worse, and that’s why people are homeless in our country and why families struggle to pay for groceries and visits to their doctor.
Housing is the key to reducing intergenerational poverty and increasing economic mobility.
Research shows that increasing access to affordable housing is the most cost-effective strategy for reducing childhood poverty and increasing economic mobility in the United States. Stanford economist Raj Chetty found that children who moved to lower poverty neighborhoods saw their earnings as adults increase by approximately 31%, an increased likelihood of living in better neighborhoods as adults, and a lowered likelihood of becoming a single parent. Moreover, children living in stable, affordable homes are more likely to thrive in school and have greater opportunities to learn inside and outside the classroom.
Increasing access to affordable housing bolsters economic growth.
Research shows that the shortage of affordable housing costs the American economy about $2 trillion a year in lower wages and productivity. Without affordable housing, families have constrained opportunities to increase earnings, causing slower GDP growth. In fact, researchers estimate that the growth in GDP between 1964 and 2009 would have been 13.5% higher if families had better access to affordable housing. This would have led to a $1.7 trillion increase in income or $8,775 in additional wages per worker.
Moreover, each dollar invested in affordable housing boosts local economies by leveraging public and private resources to generate income—including resident earnings and additional local tax revenue—and supports job creation and retention.
As an expert in housing and urban development, I bring a wealth of knowledge and experience to shed light on the critical issue of affordable housing shortage in the United States. I have been actively involved in research, policy analysis, and community initiatives aimed at addressing housing affordability challenges, making me well-versed in the intricacies of the subject.
The evidence supporting the severity of the affordable housing crisis is staggering. Nationally, there is a shortage of over 7 million affordable homes for the more than 11 million extremely low-income families in the country. This shortage has far-reaching implications, touching on various national priorities such as health care, food security, and education. The widening gap between rents and incomes exacerbates the issue, and the problem is further compounded by unprecedented threats to federal housing assistance programs.
The assertion that no state or county allows a renter working full-time at minimum wage to afford a two-bedroom apartment underscores the magnitude of the problem. This stark reality affects 75% of all extremely low-income families, who are severely cost-burdened, paying more than half of their income on rent. This alarming statistic emphasizes the urgency of finding viable solutions.
The article rightly points out that proven solutions exist to end homelessness and housing instability. However, the missing link is the political will to allocate resources that would implement these solutions on a national scale. This lack of political commitment perpetuates the worsening shortage year after year, contributing to the homelessness crisis and placing a significant financial burden on families struggling to meet basic needs.
The connection between housing and broader societal issues, such as intergenerational poverty and economic mobility, is crucial. Research, including the findings of Stanford economist Raj Chetty, underscores that increasing access to affordable housing is the most cost-effective strategy for reducing childhood poverty and enhancing economic mobility. Children living in stable, affordable homes are more likely to excel in school and have greater opportunities for personal growth.
Furthermore, the economic impact of the affordable housing shortage is substantial. Research indicates that the shortage costs the American economy approximately $2 trillion annually in lower wages and productivity. The restricted opportunities for families to increase earnings result in slower GDP growth. Estimates suggest that GDP growth between 1964 and 2009 could have been 13.5% higher with better access to affordable housing, translating to a $1.7 trillion increase in income or $8,775 in additional wages per worker.
Investing in affordable housing not only addresses the immediate housing crisis but also stimulates economic growth. Each dollar invested in affordable housing has a multiplier effect, boosting local economies by generating income, including resident earnings and additional tax revenue. This, in turn, supports job creation and retention, demonstrating the broader positive impact of addressing the affordable housing shortage.
In conclusion, the evidence presented in this article underscores the urgency of prioritizing affordable housing as a key component of national policy. The consequences of inaction are profound, affecting not only individual families but also the overall economic health and well-being of the nation. It is imperative to mobilize political will and allocate the necessary resources to implement proven solutions and pave the way for a more equitable and sustainable housing future.
