United for Homes Could Re-balance Federal Funding for Affordable Homes in U.S.
The Gap: A Shortage of Affordable Homes, a new report released by NLIHC, finds a shortage of 7.4 million affordable and available rental homes for extremely low income (ELI) renter households.
ELI households are those households with incomes at or below the poverty guideline or 30% of their area median income. The report calls for re-balancing federal housing expenditures to serve households with the greatest needs.
In New Jersey,
- There is a shortage of 212,237 affordable and available rental homes at or below ELI. At or below 50% of the area median income (AMI), there is a shortage of 300,470 affordable and available homes.
- Per every 100 New Jersey ELI households, there are 29 affordable and available housing units. At or below 50%, that number is 39 affordable and available housing units.
- There is a shortage of 74% affordable and available housing units for households with ELI, and
- That shortage is 43% for household living with incomes that place them at ELI up to 50% of AMI.
The study finds there are just 35 affordable and available units for every 100 ELI renter households nationwide and that 71% of ELI renter households are severely-cost burdened, spending more than half of their income on housing.
After paying their rent, these households have insufficient resources left for other necessities like food, medicine, transportation, or child care. They are often one financial set-back away from eviction and homelessness.
NLIHC urges Congress to address the grave shortage of affordable and available rental housing for the poorest households in America.
Tax reform provides Congress the perfect opportunity to enact modest changes to housing tax expenditures, particularly to the highly regressive mortgage interest deduction, to generate billions in savings that could support housing affordability for our nation’s lowest income households.
The NLIHC-led United for Homes (UFH) campaign calls for re-balancing federal housing expenditures, 75% of which currently benefit higher income homeowners, to invest in affordable housing for the poorest households.
The campaign calls for changes to the mortgage interest deduction that would benefit millions of additional lower income homeowners and generate billions of dollars in savings for investments in affordable rental housing.