Page 9 - THE GAP: The Affordable Housing Gap Analysis 2019

THE GAP A SHORTAGE OF AFFORDABLE HOMES, 2019 Figure 4 illustrates the incremental change in the cumulative de cit and eventual surplus of a ordable and available rental homes with each step-up in income. Renters 8.0 with extremely low incomes face 6.0 the most severe shortage by far, 4.0 and the cumulative shortages of households with higher incomes are largely attributable to the shortage for the lowest income renters. -4.0 2.0 homes available and a ordable for 0.0 2.1 -0.4 FIGURE 4: INCREMENTAL CHANGE TO SURPLUS (DEFICIT) OF AFFORDABLE AND AVAILABLE RENTALS, 2017 (IN MILLIONS) 5.7 1.9 COST BURDENS -2.0 -6.0 -7.0 Extremely Low-Income (ELI) Households are considered housing cost-burdened when they spend more than 30% of their incomes on rent and utilities. ey are considered severely cost-burdened when they spend more than half of their incomes on their housing. More than 9 million extremely low-income renters, 5 million very low-income renters, and 4 million low-income renters are cost- burdened (Figure 5). Combined, extremely low-, very low-, and low- income renters with incomes below 80% of AMI account for 92% of all cost-burdened renters. -8.0 9,425,712 7,761,502 > ELI to 50% of AMI 51% to 80% of AMI 81% to 100% of AMI Above median FIGURE 5: RENTER HOUSEHOLDS WITH COST BURDEN BY INCOME GROUP, 2017 Cost Burden Severe Cost Burden Of the 10.7 million severely housing cost-burdened renter households, approximately 7.8 million are extremely low-income, 2.1 million are very low-income, and 684,000 are low-income. Extremely low-income renters account for nearly 73% of all severely cost- burdened renters in the U.S (Figure 6). Combined, extreme low-, very low-, and low-income households account for more than 98% of all severely cost- burdened renters. 88,416 54,115 Extremely Low-Income 5,064,746 4,080,235 2,115,593 Very Low-Income Source: NLIHC tabulations of 2017 ACS 684,343 Low-Income 892,567 Middle-Income 714,825 Above Median Income 3 eweightedaverageof30%ofHUDMedianFamilyIncomeforFairMarketRent(FMR)areas(NLIHC,2018d). NATIONAL LOW INCOME HOUSING COALITION 5 Extremely low-income renters have little, if any, money remaining for other necessities after paying their rent. A severely cost-burdened extremely low-income family of four with monthly income of $1,8393, for example, has $690 remaining for all other non-housing expenses after renting an average two-bedroom apartment at the fair market rent