Affordable Housing Month kicks off during a time in which owning a home has never been more expensive. Record rental prices and property values, fueled by record inflation, are pricing renters out of markets nationwide. While the Federal Reserve is working to slow the record inflation, soaring costs highlight America’s growing housing crisis. Right now, one estimate shows America is three million homes short of demand from potential buyers. NPR reports the lack of supply pushed the prices of homes to record levels, up nearly 20% from the last year.
Inflation is also hitting renters hard with some forcing to make new, more affordable living arrangements as the cost of rent soars. Nationwide, inflation has sent rent prices through the roof. On average, most renters are looking at a 20 percent increase. However, the larger the city the more significant the increase. For example, renters in the Miami metropolitan area are paying 58% more in rent costs than last year.
Affordable Housing Growing Out of Reach?
America’s Affordable housing crisis is only growing worse in the wake of record inflation. Many states lack options for potential renters and buyers. For example, the National Low Income Housing Coalition estimates the need for hundreds of thousands of units in Alabama, Mississippi, Virginia, and Connecticut alone. These alarming numbers, coupled with a growing homeless population, have lawmakers’ attention across the country.
The Biden Administration just released a plan to tackle America’s Affordable housing crisis. The Housing Supply Chain Action Plan aims to close the growing housing gap within five years. The plan comes after the President announced that more than 300,000 units would be built while in office. The Housing Supply Chain Action Plan starts with the construction of those units. You can learn more about the plan and how it will also benefit renters here.
Again, as we make our way through Affordable Housing Month, remember that your work is more important than ever before. Families are facing record costs and some unprecedented times and hardship. Resources are available to help those struggling to pay rent or find housing options available in their area.