Americans Struggle to Secure Housing Despite Uptick in Vacant, Low-Income Units
The most impoverished individuals in the U.S. experience the most severe lack of affordable housing. However, a recent survey of state housing agencies indicates that the majority of low-income housing developed in recent years caters to those earning 50% or more of the median income in a given area.
Certain cities are now witnessing an increase in vacancies as the rents for these units near market rates. Consequently, apartments classified as affordable remain unoccupied because the most disadvantaged individuals cannot afford them. In the meantime, some individuals are being pushed into homelessness, while others find themselves in dire situations to secure housing that exceeds their financial means.
In Austin, Texas, for instance, more than 4,500 units designated by the city as affordable—almost 16%—remain unoccupied, notably affecting some of the city’s residents.
“I don’t make enough money really to afford anything,” said Matthew Davis, 49, said of the few hundred dollars he earns a month. “I just keep trying to swim uphill.”
According to the latest annual report from the National Low Income Housing Coalition (NLIHC), there are approximately 4 million affordable rental units available for the 11 million extremely low-income renter households in the country.
These households consist of individuals with annual incomes that fall below the federal poverty guidelines—which is just under $16,000 for a single-person household—or 30% of the median income in their respective areas, whichever amount is greater.
They represent about a quarter of all renter households in the U.S. and include many individuals employed in low-wage positions, seniors, and those with disabilities who rely on fixed incomes. The report indicates that nearly three-quarters of extremely low-income renter households allocate more than half of their income towards rent and utilities, leaving them with minimal funds for other essential needs.
Approximately 75% of extremely low-income renter households allocate over half of their income to rent and utilities, as stated in the report, which leaves them with minimal funds for other essential needs.
However, homes designated for these renters constituted only about 12% of the affordable housing units funded in 2024 through the Low-Income Housing Tax Credit—a federal initiative that offers tax credits to developers in return for maintaining low rents for a minimum of 30 years, according to data from the National Council of State Housing Agencies.
The majority of these units are aimed at individuals earning at least 50% of the area’s median income (AMI). In Austin, this translates to a single individual earning approximately $47,000 annually, in contrast to an extremely low-income individual who earns less than $28,000.
Since its inception 40 years ago, the program has facilitated the financing of nearly 4 million affordable units across the nation. Nevertheless, some experts argue that it is inefficient and more expensive than providing housing vouchers.
“It’s enormously complex and bureaucratic, and it raises the cost of construction enormously because the rules are so complicated,” said Chris Edwards, an Economist at the Cato Institute. “If you’re going to subsidize affordable housing, you should give the money directly to tenants,” he said, referring to housing vouchers.
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