NLIHC Gap Report Finds Shortage of 7.1 Million Affordable and Available Homes for Extremely Low-Income Renters

NLIHC released the latest version of its annual report “The Gap: A Shortage of Affordable Homes” on March 13. The report finds that the lowest income renters in the U.S. face a shortage of 7.1 million affordable and available rental homes. This leaves extremely low-income renters saddled with housing cost burdens, with nearly 87% spending more than 30% of their income on housing and 75% facing severe cost burdens, spending more than 50% of their income on rent. As a result, extremely low-income renters account for over two thirds of all severely cost-burdened households, despite only representing a quarter of renters. 

The report reveals that for every 100 renter households with extremely low incomes, only 35 affordable and available rental homes exist. These renters are typically employed in low-wage jobs or have other factors that constrain their earning potential such as being a senior, having a disability, attending school, or caregiving for children or family members with disabilities.  

Black, Latino, and American Indian or Alaska Native households are disproportionately impacted by this housing shortage since they are disproportionately extremely low-income renters. Eighteen percent of Black households, 17% of American Indian or Alaska Native households, and 13% of Latino households are extremely low-income renters, compared to just 6% of white non-Latino households. These disparities reflect both historical and ongoing systematic racial inequalities that continue to limit access to homeownership and economic advancement for non-white households. 

The shortage of affordable and available rental homes for the lowest-income renters is felt nationwide. No state or major metropolitan area has an adequate supply of affordable homes for extremely low-income renters. Among states, the supply of affordable and available rental homes ranges from 17 affordable and available homes for every 100 extremely low-income renter households in Nevada to 62 available for every 100 in North Dakota. Forty-one of the largest 50 metros have fewer than the national level of 35 affordable and available units for every 100 extremely low-income renters. 

The report demonstrates how the private market alone is unable to meet the needs of extremely low-income renters, with insufficient funding for housing subsidies exacerbating the problem. While there is growing attention to the challenges faced by middle-income renters, this group accounts for just 1% of those experiencing severe cost burden. Severely cost-burdened middle-income renters also tend to be concentrated in a handful of high-cost metro areas. The report suggests that the affordability challenges faced by middle-income renters would be best addressed by local housing policy interventions, especially those that reduce constraints on housing production in the private market.  

The shortage of affordable housing for the lowest-income renters should be addressed through increased federal funding for deeply targeted programs like the national Housing Trust Fund, Housing Choice Vouchers, and public housing. Investments should be made in emergency rental assistance programs to assist households experiencing short-term financial hardships. These measures are necessary to preserve and expand deeply affordable housing, close the gap between incomes and rents, and promote housing stability for the lowest-income renters. 

Read the full Gap report and find an interactive map at: https://nlihc.org/gap.