Low-income households finding themselves in "worst case" situations have grown significantly from 2007 and even more precipitously since 2001, showing the pressing need for affordable housing in communities around the country.
The Department of Housing and Urban Development released a report to Congress that attempted to paint the picture of affordable housing needs in the U.S. Worst case housing needs were defined as low-income households who paid more than half their monthly income toward rent, lived in housing that was of severely poor quality, or both. Additionally, these households did not receive government housing assistance. According to the report, the number of households falling into that standard grew by 1.2 million - more than 20 percent - from 2007 to 2009. There were 7.1 million households that met the worst case standard in 2009, an increase of 42 percent from 2001.
The report analyzed data from the HUD's American Community Survey conducted between May and December 2009, showing that the economic recession increased unemployment, hurt household incomes and put additional financial pressure on those renting affordable apartments.
"The report shows a clear link between unemployment and housing needs and that's why the president has been so focused on creating jobs," said HUD Secretary Shaun Donovan. "A growing economy and new jobs, combined with HUD's new commitments to produce and preserve affordable rental housing is what we need to reverse this trend."
These needs also crossed racial and social divides, with each ethnic group experiencing increases in worst case housing needs from 2007 to 2009. The report also showed a dearth of available affordable apartments, mainly because a lack of rental construction has left many higher-income tenants also competing for cheap apartments. That's left only 36 percent of low-income renters able to find affordable apartments.
"The loss of income and the general lack of affordable housing are clearly putting a lot of stress on unassisted families at the lower end of the income spectrum," Dr. Raphael Bostic, HUD's Assistant Secretary for Policy Development and Research. "It's equally clear that had it not been for housing assistance offered by HUD, the economic impact on very low-income renters would have been greater still."
Some government programs are helping communities close their affordable housing gaps - 25 percent of very poor U.S. households receive rental assistance, said the report. Additionally, several programs have rehabilitated thousands of cheap apartments nationwide and introduced different initiatives to provide more housing.
On the plus side, apartment construction is expected to increase in 2011, according to the National Association of Home Builders, which could make more cheap apartments available to rent.
Jim Sarone is a writer for My Cheap Apartments specializing in cheap apartments and the affordable housing markets.
