The National Low Income Housing Coalition shows with its report titled “Out of Reach” that renting a two-bedroom unit is out of reach for too many Americans, as families confront a wide gap between the cost of housing and their ability to pay for it.
According to HUD Secretary Shaun Donovan, that gap has only grown during the recent recession. “This was confirmed by the results of HUD’s Worst Case Housing Needs Survey, which showed an increase of 20 percent in worst case needs between 2007 and 2009, the largest increase in the survey’s history,” said Donovan.
He said that the nation has lost 150,000 homes from its affordable housing stock in the last 15 years—and “the estimated $26 billion capital needs backlog facing our public housing program.”
According to the “Out of Reach” report, over the past four years, renter household growth has consistently surpassed owner household growth.2 It is estimated that the number of renter households rose by nearly 4 million between 2005 and 2010. Over the next decade, the number of renters may increase by upwards of 470,000 annually, further straining the rental market and disproportionately affecting extremely low income households.
Among renter households, the number of extremely low income renters, those earning 30% or less of the Area Median Income, jumped by nearly 900,000 in the years between 2007 and 2010. With the recent surge in demand, the need for affordable rental units has never been greater.
Here are some of the stats from the report—none of which are good for area, particularly the African-American community whose household income is $22,787 less than their white counterparts.
Fair Market Rate for 2BR unit: $949
Hourly wage necessary to afford rent 2-bedroom apartment: $18.25
Household Income needed to afford 2BR: $37,960 —In Pensacola Median Household Income: Whites: $49,279 Blacks: $26,492
How many people making minimum wage need to living in the 2BR unit to afford it: 2.5