Housing Affordability: The Growing Low and Middle Income Crunch

The scarcity of affordable housing is a concern across most of America today. And it’s not just a problem for low-income earners anymore. Housing affordability issues are creeping up the income scale, reaching the middle-class in many areas. The causes include high land values, low wage growth, rising home prices, density restrictions, and overall economics that constrain the supply of low-to-moderately priced housing. The lack of affordable housing is now reaching rental apartments where rents have risen dramatically over the past several years.

As rent growth continues to outpace income and wage growth, the amount of cost-burdened households continues to rise, and may increase by as much as 25% by 2025. This would result in over 14 million workforce housing renters across America putting half of their paycheck to rent payments each month. Cities are increasingly cash-strapped and have few options to drive more affordability. Without innovative solutions to help reduce the burden on low income workers, many more Americans will face tough housing decisions in the coming years.

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