NLIHC’s The GAP Report gives us the Numbers on Housing Affordability


Posted On: April 10, 2019

Here are the key findings of NLIHC’s The Gap Report for 2018:

KEY FINDINGS OF THE REPORT INCLUDE:

  • The nation’s 11.2 million extremely low-income renter households account for 25.7% of all renter households and 9.5% of all households in the United States.
  • The U.S. has a shortage of more than 7.2 million rental homes affordable and available to extremely low-income renter households. Only 35 affordable and available rental homes exist for every 100 extremely low-income renter households.
  • Seventy-one percent of extremely low-income renter households are severely cost-burdened, spending more than half of their incomes on rent and utilities. They account for 72.7% of all severely cost-burdened renter households in the United States.
  • Thirty-two percent of very low income, 8% of low income, and 2.3% of middle-income renter households are severely cost-burdened (see Box 1).
  • Of the eight million severely cost-burdened extremely low-income renter households, 84% are seniors, persons with disabilities, or are in the labor force. Many others are enrolled in school or are single adults caring for a young child or a person with a disability.

_____________________________________

In addition to these drastic numbers, the numbers representing the amount of cost-burden households — that being households that cost 30% or more of the tenant/family’s household income — are nearly 9.7 million for extremely low-income renter households, 5 million for very low-income renter households, 4.1 million for low-income renter households, and 923,726 for middle-income renter households (Figure 4).

Some of you may be wondering what the difference in these terms, Extremely Low-Income, Very Low-Income, and Low-Income, are. So for the sake of making sure we’re all on the same page:

  • EXTREMELY LOW INCOME (ELI): Represents households with incomes at or below the Poverty Guideline or 30% of Area Median Income, whichever is higher.
  • VERY LOW INCOME (VLI): Represents households with incomes between ELI and 50% of Area Median Income.
  • LOW INCOME (LI): Represents households with incomes between 51% and 80% of Area Median Income.
  • MIDDLE INCOME (MI): Represents households with incomes between 81% and 100% of Area Median Income.
  • ABOVE MEDIAN INCOME: Represents households with incomes above 100% of Area Median Income.

_____________________________________

The shortage of affordable rental units becomes a surplus higher up the income ladder because households with more income can afford a wider range of housing prices (Figure 1).

_____________________________________

Higher income households can occupy rental homes in the private market that are affordable to lower-income households, making them unavailable for households with lower incomes. The figure below helps illustrate this:

Of the 7.5 million affordable rental homes for extremely low-income households, 3.5 million are occupied by higher-income households, making them unavailable to extremely low-income renters. As a result, four million affordable and available rental homes exist for the 11.2 million extremely low-income renter households. This results in a shortage of approximately 7.2 million affordable and available rental homes for extremely low-income households, or only 35 for every 100 extremely low-income renter households.

_____________________________________

In the report, the NLIHC gives the numbers of Rental Homes Affordable and Available per 100 Extremely Low-Income Renter Households listed by state. And here are the numbers presented for each of our four Performance-Based Contract Administrator (PBCA) states.

 

Read the complete NLIHC The Gap 2018 Report here.



YOU MIGHT ALSO LIKE

HERS Test

"HERS test" key to determining housing affordability

This week in Birmingham, Alabama Power sent certified RESNET HERS Raters to the North Titusville neighborhood to conduct a HERS […]

Read More
washington k-8

NAVIGATE ANNOUNCES $50,000 DONATION TO WASHINGTON ELEMENTARY

To support educational needs for Titusville students FOR IMMEDIATE RELEASE: JUNE 12, 2019 Birmingham, Alabama: Navigate Affordable Housing Partners today […]

Read More
titusville development corporation

Navigate now working with Titusville Development Corporation

Dr. Ron Bayles, Titusville Development Corporation 205-252-5526 rbayles@titusvilledevelopment.org FOR IMMEDIATE RELEASE: July 30 , 2018 “WORKFORCE HOUSING IMPORTANT TO NEIGHBORHOOD […]

Read More