For Renters Who Need Affordable Housing, Choices Are Few

Everyone knows the economy has been rough on homeowners lately. But for people who rent -- especially for people who rent and don't make very much money -- things may be even worse. For Americans of modest income, it's "incredibly difficult" to afford rental housing right now, according to Megan Bolton, a senior research analyst at the National Low Income Housing Coalition.

That's because more and more people are entering the rental market -- driven out of their homes by foreclosure, or just shying away from buying a house until prices improve. And rents are climbing higher as a result.

The average renter makes just $14.15 an hour, according to a report released Tuesday by the NLIHC. With real estate prices the way they are, though, you'd need to earn at least $18.25 an hour to be able to rent a typical two-bedroom apartment and still have cash left over for other expenses.

So, $4.10 an hour -- that's what stands between many renters and an affordable place to live.

It's a small sum. But at a time when poverty is at an all-time high, and more and more people report not having enough money to put food on the table, it's also a serious problem. And it seems to be growing more pronounced, according to Bolton.

"Rents are really rising right now," she told The Huffington Post. And, she said, workers' wages nationwide are either stagnant or dropping, as they have been since the economy ran into choppy waters a few years ago.

"There's definitely an indication that things are going to get worse," said Bolton.

Renters have responded in a number of ways, though "none of them are ideal," she said. Young adults are moving back in with their parents, and more families are living doubled up with friends or relatives -- a condition that often precedes a period of living on the streets or in a shelter.

"That's our real concern here," Bolton said, "is that these folks are going to end up homeless if we don't take action."

For the moment, though, Bolton said that most low-income renters are simply moving into places they can't really afford -- and "spending huge amounts of their paycheck on housing."

That's not a solution that will work out in the long term, said Sheila Crowley, president and chief executive of the NLIHC.

"They don't have enough money left to do the basic things," Crowley told HuffPost. "They have to skimp on food, or they have to skimp on medicine, or they don't have enough money left for transportation."

Such deprivations are a concern for millions of people now.

Part of what led to the current mess, said Crowley, is that federal policy was focused for so many years on making a homeowner out of every American.

"For the '90s and the 2000s, under both President Clinton and President George W. Bush," owning your own home was held up as "the right thing to do," Crowley told HuffPost. There was a perception that "renting was somehow unacceptable."

The result, many argue, was the speculative housing bubble that almost took down the economy in 2008.

What's called for now, Crowley told reporters at a press conference Tuesday, is a more flexible approach to housing policy, one that recognizes that "people are at different stages of their life cycle, people have different needs, people have different incomes."

Raphael Bostic, assistant secretary for policy development and research at the U.S. Department of Housing and Urban Development, agreed with Crowley, telling attendees at the press conference that "in our society's collective psyche, the notion that homeownership is a no-brainer that everyone must do" is an idea that "doesn't prevail anymore."

Crowley told HuffPost that among policymakers, there's currently a "great disagreement about whether or not the federal government should do anything to increase revenue," making it difficult to know whether federal housing programs will get the funding they need to make affordable rental units available.

Remarks from HUD Secretary Shaun Donovan included in the latest NLIHC report note that HUD is currently undertaking efforts to "build or preserve more than 70,000 affordable rental homes," although by most estimates this would only be a drop in the bucket.

A previous report from the NLIHC estimated that in order for every family of low-earning renters to have a place to live, 6.8 million new rental units would need to be made available. And a report last year from Harvard's Joint Center for Housing Studies estimated that the number of renter households could grow by as much as 470,000 every year for the next decade.

Comments

[vx2454]

01:32 PM on 12/10/2012

This is the real problem. No housing. In many areas the rentals have gone up because they could driving out many people who make modest living. In a consumer economy that means less discretionary income to spend which snowballs into a continued economic down turn.

[Vicki L Hodges]

09:17 PM on 08/30/2012

Finding affordable housing is a huge issue. Here's a great article that might be helpful in regard to a number of housing options, including federal assistance, for low-income families. http://sharynsslant.hubpages.com/_34sz0oh6j528t/hub/Housing-Help-for-Low-Income-Families#lastcomment

[RobinNella]

03:50 PM on 12/12/2012

Thank you so much for sharing the hubpages article. I never thought I would need to know about these agencies until a car accident completely turned my world upside down and now find myself homeless - it boggles my mind. Having a starting point feels very optimistic!

[Vicki L Hodges]

05:30 PM on 12/12/2012

You're welcome, RobinNella. I'm glad the article is helpful. I thought it was a great resource. The lady who wrote it knows what she's talking about. Good luck!

[merf61]

07:23 PM on 08/06/2012

Now we have thousands of new "slumlords" trying to cash in on all the homeforclosings. They buy these homes slightly cheaper than they would have in a strong economy. But these new slumlords can still barely afford their new rental property. And their in a big hurry to get rich. They absolutly beleave they can get the mortage and make a profit at the same time, all without putting a penny into the property. Anyone who rents is a fool.

[vx2454]

01:34 PM on 12/10/2012

Oh and how does a person with limited income afford a house and the costs the are with buying a home?.

[hugatree]

12:27 PM on 03/19/2012

Ever watch the programs on HGTV that document people on a limited budget who want to buy their first home or rent an apartment? They have long want lists that totally don't match the reality of their finances. They complain about rooms being "too small," about the color of appliances or of tile in the bathroom. We have become a country of entitlement. How ironic that Levittown and others like it with their tiny rooms and basic amenities were once a sought-after suburbs. Sixty years later low-income renters want space, stainless steel, granite countertops, hardwood floors, and then they gripe about popcorn ceilings.

[martha high]

07:46 AM on 06/09/2012

so not true ,,you are out of touch

[Jane Gozenpud]

10:17 AM on 12/10/2012

I recently rented in the Northwest Chicago suburb...land of the rich! My apartment had holes in the walls, the back door never locked and leaked cold air. Then here is the best part, the animal hoarder in the basement killed ten cats, we got infested with fleas, mice and roaches...You want to tell me again about entitlement? Or how about lazy good for nothing slumlords that are rich and don't care about their tenants. For a 2 bdrm, $1,000 a month, just so my kids could be in good school and close to family...I called the state police, the health dept...even the city! No one did anything! My kids were covered in flea bites...but hey, I am living some dream where these things matter! Poor families have to endure this abuse all over the country, we have no rights to safety and health. These landlords, reality companies and property man. are making a killing and putting families though hell!

[vx2454]

01:38 PM on 12/10/2012

Well for many that is an issue. We do not live in the world of 1960. Space is necessary as the life of the 21st century has changed. Worse watching HGTV is not a representative of the vast majority of renters. When Levittown was built haw many had king or queen sized beds? I have seen modern building that are so small that they are unlivable.

[hungryblackcat]

11:46 AM on 03/19/2012

Husband makes $14.15 an hour...check
I'm completely disabled...check
$100k in student loans that I wont be able to pay...check
No SSI ("I'm too young to be disabled")...check
50% of income towards $900 rent...check
Can't afford birth control...check
After all of the bills are paid there's $200 for groceries a month for two people who are 6 ft tall. We aren't on food stamps. Our copay is so high $100 per visit that I can't get treatment (Spinal Stenosis). No savings. No emergency fund. If he gets laid off we are homeless. His family disowned him (Narcissists). My family won't take us in again. People like me who tend to be disabled have no friends.

[hugatree]

12:17 PM on 03/19/2012

There is no age limit on disability in this country. Even small children who are disabled receive a Social Security check. You might consider yourself "completely" disabled, but Spinal Stenosis is not often considered a totally disabling condition by Social Security because people with that condition may not be able to stand to work but are usually capable of doing wrk at a desk (with accommodations). Student loans are forgiveable for complete disability. HUD provides Section 8 housing help to low income and disabled people (you just have to wait patiently on the list). There are affordable health clinics at sliding rates in all major cities in this country with low or no copays. I am totally disabled and have PLENTY of friends, but then again, I have the facts and know where to seek help and don't sit around whining about my disability. And by your admission at what you pay for rent, you make WAY more money than I do. My rent is 80% of my income -- pretty typical for others in my situation.

[edstreiff]

10:51 AM on 12/10/2012

@Hugatree your comment was well put, informative and to the point thank you

[vx2454]

01:42 PM on 12/10/2012

If this person lives in a major city and is able to get the information you might be right. She also needs an advocate to work thru the paperwork.

[jstanavgguy]

09:30 AM on 03/19/2012

Don't worry. I am sure that a government mandate will be coming soon to 'fix' this.

[Durrrrrr]

06:14 PM on 03/19/2012

It is called rent control. It worked wonders in NYC.

[jstanavgguy]

07:37 PM on 03/19/2012

Rent control is a disaster.

Apartments that should be renting for 4 and five times what they receive.

[Shellylyn]

10:00 AM on 03/16/2012

"...or just shying away from buying a house until prices improve."

At the peak of the bubble, where I live, properties were going for 80% above value in a county ranked third from top of overpriced markets. Now seeing properties listed with asking prices lower than prior to bubble.

Perhaps I miss understood the statement?

[libertymen]

08:01 AM on 03/16/2012

In Japan they have cubicle hotels or apts.
You rent a small space to sleep in
Really small...

[FatFeline]

05:38 AM on 03/16/2012

I have a friend who own a bunch of low rent apartments. He has an interesting philosophy. From time to time he loses renters because they can't pay. He loses them but always has replacements waiting. The replacements were previously in the lower half of the middle class. As the economy stays bad he has an endless supply of new renters who are declining in class. He has a 97% occupancy rate.

[Penscott]

11:02 PM on 03/15/2012

"The average renter makes just $14.15 an hour, according to a report released Tuesday by the NLIHC. With real estate prices the way they are, though, you'd need to earn at least $18.25 an hour to be able to rent a typical two-bedroom apartment and still have cash left over for other expenses."
These numbers are completely meaningless. Try earning $18.25 an hour and finding a two-BR apartment in any medium or large city. Unfortunately, we have millions of people so unskilled and/or unciviized, that they are not worth even $18.25 an hour. This is part of the problem of having an underclass that is self-perpetuating, and constantly being enlarged by illegal immigration.

[InVinoVeritasBC]

03:46 PM on 03/16/2012

"Uncivilized"?? I don't get what this means...

[Penscott]

04:04 PM on 03/16/2012

Uncivilized - violent, disrespectful of the rights of others, inclined to petty crime, scornful of learning and education, ready to bully when able to get away with it, without a work ethic or interest in a stable famly life, without altruism. That will do for a start.

[lulubelle1956]

08:01 PM on 03/15/2012

they certainly need to do sometying in nyc. the new yorker has a great article this week on how the 1 percenters buy property in nyc and then go through a shell game to avoid paying city and state taxes, claiming they are not even in their apartments or in nys 183 days a year. if that isnt a waste of space and of tax revenue, i dont know what is. meantime, there is nowhere for anyone else to live that is affordable, and the city and state get no revenue from people who are just tax dodgers.

[Penscott]

11:03 PM on 03/15/2012

However much they may evade, the 1 percenters pay half the taxes raised by NYC.
Are they overpaid? Of course.

[lulubelle1956]

06:21 AM on 03/16/2012

read the article which tells you the laws were not always so, just like any tax code, they can bbe changed. time to change them.

[lulubelle1956]

10:21 PM on 03/16/2012

id rather see them pay more that 0 in taxes (3 percent is the city tax) than wait for them to trickle down, or as everyone now calls it tinkle down, doodly squat. and that will happen.

[sjannese]

01:55 PM on 03/15/2012

it's a $hame [that worker's] wages haven't kept up with the cost-of-living!,........i made more $$$ 25 yrs. ago than i do today ....and i was self-employed !

[DMDAY44]

05:23 PM on 05/17/2012

Maybe you should go back to being self employed.

[sandrita mason]

01:45 PM on 03/15/2012

On the other side of the equation are landlords. To keep their units occupied, rents have to be kept at an amount that tenants are willing and able to pay. I live in an apartment building that experiences constant turnover. Recently, management raised my rent by $350. I immediately found another apartment for $400 less than what my current landlord demands.

[The Notorious PDF]

02:20 PM on 03/15/2012

WHOA! $350 in one fell swoop! That's unreal.

[FatFeline]

05:41 AM on 03/16/2012

The landlord probably had a replacement for you within days. Just as took a step down in your apartment, someone else took a step down to rent the apartment you left. There is continuous supply of renters who have to take the downward steps.

[Bill Andivey]

01:39 PM on 03/15/2012

The NHLIC report is fanciful. In Tucson, AZ, for example, the barrier for "extremely low-income" is $17,880. Thirty percent of that figure -- which is what NHLIC deems the acceptable amount a person should pay for housing -- is $447/month. There are homes available right now for that amount in Tucson. Question: Who should have to pay to build more structures with units that rent for $447 per month? The government? Private landlords? You and me? Please tell me, who should take the massive loss that would be required to create affordable housing at those prices?

[Doris Rice]

01:37 PM on 03/15/2012

Maybe a solution would be for the Government or Banks to give those foreclosed homes to those people/renters who are willing and able to put in their own physical effort/work and funds to fix up and maintain those homes instead of paying rent.
The value of work against rent should be calculated and documented with a contract and supervision. After a while those same homes could be offered to those same people for purchase at reasonable prices and possibly with a 40 year mortgage to keep the payments low.

[libertymen]

07:58 AM on 03/16/2012

GIVing isnt the answer.
Subsidizing to some extent might be.

[Mondieu]

06:08 PM on 03/23/2012

It isn't? Why is it OK for banks to take over a trillion dollars of tax payers money but it is not OK for banks to give away houses?