- The shortage of affordable rental homes for extremely low-income renters has hit 7.1M units, according to the NLIHC.
- Federal budget cuts could worsen this affordable housing crisis, especially as HUD plans to cut its workforce by 50% and close field offices.
- For every 100 extremely low-income households, there are only 35 units considered affordable and available.
- Cities in the South and West, like Las Vegas, Austin, and San Diego, are facing the most severe affordable rental shortages.
The US affordable housing crisis keeps getting worse, as a new report from the National Low Income Housing Coalition reveals.
Specifically, the shortage of affordable housing for extremely low-income renters isn’t looking great, as reported by Bisnow.
By The Numbers
According to the NLIHC’s annual The Gap Report, we’re currently 7.1M rental homes short for the nearly 11M extremely low-income renters across the country. This shortage could get even worse as federal budget cuts loom overhead.
The previous year’s report noted a slightly higher shortage of 7.3M units, but ongoing budget cuts are expected to make matters worse throughout the year, especially with proposed reductions to the Department of Housing and Urban Development (HUD).
Reports indicate the Trump administration plans to slash HUD’s workforce by 50% and close numerous field offices.
Broader Impact
Notably, HUD oversees numerous programs that help provide affordable housing for more than 4.3M low-income families nationwide. The potential impact of DOGE’s cuts is understandably alarming.
Dan Emmanuel, research manager at NLIHC, warned these layoffs are akin to “a war” on the federal workforce, which could severely hinder HUD’s ability to manage housing assistance programs effectively.
Recently, the White House also terminated a $1B HUD program that helped preserve affordable housing units.
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Struggling Market
The extremely low-income renter segment—those earning 30% or less of the area median income—faces a severe shortage. For every 100 households in this income bracket, there are only 35 affordable and available units
This demographic, which includes low-wage workers, seniors, individuals with disabilities, and single-adult caregivers, is spread across the country, and no state or major metro area is free from the shortage.
Markets in regions such as the South and West face the biggest shortages, with Las Vegas, Austin, and San Diego showing alarming gaps in affordable housing.
On the other hand, cities like Boston and St. Louis have much smaller shortages. These disparities can be attributed to the historical distribution of HUD-assisted housing units across the US.
Long-Term Outlook
Emmanuel highlighted the dangers of spending caps, which, even if not technically direct cuts, can erode the value of programs over time due to inflation.
In other words, if federal funding for affordable housing programs continues to be cut or capped, as is expected, the situation will only get worse.
