Despite LIHTC Success Almost 333,000 in NJ Pay More Half Income Towards Renting Homes
The fact sheets now reflect the latest available data.
The Housing Credit benefits both New Jersey’s families and the economy.
Between 1986 and 2014, in NJ it has:
- Developed or preserved 51,057 homes
- Provided 118,963 low-income households with homes
- Supported 57,694 jobs for one year
- Generated $5.5 billion and
- Generated $2.16 billion in tax revenue
Data for each NJ Congressional District is available at the bottom of this post.
But despite these benefits, there is still an affordable housing need in New Jersey. Although the Housing Credit has had a tremendous impact in New Jersey, much more affordable housing is still needed.
In New Jersey alone, 329,790 households pay more than half of their income monthly towards rent, leaving too little for other expenses like health care, transportation and nutritious food.
And in New Jersey, a minimum wage worker has to work 121 hours per week in order to afford a modest two-bedroom apartment.
The data come from the National Council of State Housing Agencies’ 2014 Factbook, with economic impact multipliers from the National Association of Home Builders and data on cost-burdened renters from the 2014 American Community Survey.
For the first time, the state fact sheets also use data from the National Low Income Housing Coalition’s Out of Reach report, showing how many hours a minimum wage worker in each state has to work in order to afford a modest two-bedroom apartment.
Nationwide, the Housing Credit has:
- financed 2.9 million apartments,
- providing affordable homes to 6.7 million low-income families and supporting 3.25 million jobs.
However, 11.4 million households still pay more than half of their income towards rent, and the average minimum wage worker has to work 91 hours per week in order to afford a modest-two bedroom apartment, underscoring the need to expand the Housing Credit.
The Housing Credit is a proven solution to help address the affordable housing crisis.
It is our nation’s most successful tool for encouraging private investment in affordable rental housing. It has financed nearly 3 million apartments since 1986, providing roughly 6.5 million low-income families, seniors, veterans, and people with disabilities homes they can afford. Without the Housing Credit, it would be financially infeasible for the private sector to build affordable homes for the families that need them most.
However, viable and sorely needed Housing Credit developments are turned down each year because Housing Credit resources fall far short of the demand. On average, state Housing Credit allocating agencies receive applications requesting more than three times their available authority. With more Housing Credit resources, we could make a meaningful step towards addressing our nation’s vast and growing affordable housing needs.
The A Call to Invest in Our Neighborhoods (ACTION) Campaign is a national, grassroots coalition of roughly 1,300 national, state, and local organizations and businesses calling on Congress to expand the Housing Credit.