A recent annual report from the National Low-Income Housing California (NLIHC) declared that for a low-income worker, one-bedroom rentals are not affordable in 99 % of counties in the U.S. The country currently has 1.8 M people earning low wage or less. The federal least wage is persisted at $7.25, whereas rents have skyrocketed between 2.5 and 4 %.
Nationwide, affordable rent for somebody on Social Security earning is only $231 monthly. For somebody living on low-income, it is $337, and for somebody earning average renter income, it is $913 monthly. Whereas the national median fair market rent for one-bedroom— $970 —is higher than all these amounts.
The affordability housing crisis has turned into a national issue that has got currency among 2020 presidential candidates. Kamala Harris, Julian Castro, and Elizabeth Warren have all presented housing plans, and Diane Yentel, NLIHC CEO and president, holds the report ask for the federal government’s need to take action.
The report asks for mushroomed funding to a few federal programs—the Low-Income Housing Tax Credit program, the Housing Trust Fund program, and the Housing Choice Voucher program. The tax credit is the key point of Harris’ affordable housing plan.
The program of the Department Housing and Urban Development—the Housing Trust Fund—is an affordable housing creation and care program. Warren’s affordable housing plan asks for $445 B investment in the Housing Trust Fund. For having a part of new developments for affordable housing, the LIHTC program grants tax credits to real estate developers. And for low wage earners, the Housing Choice Voucher program finances rent.
Among low wage earners, the affordable housing crisis is a systemic matter that is the result of sluggish growth in incomes and rapid growth in rents. And when people have to spend more of their earnings on rent, they have less for other needs like food and healthcare. Thus, while the issue is often put as a housing issue, it affects every aspect of the lives of those families who are struggling to afford a home.