Housing is not effective at providing shelter to the people, but also develops a sense of belonging and a safer environment for your family. Housing is also a community to call home.
If you don’t have stable housing, you will suffer from financial insecurity. Without an affordable place where you can live peacefully, some basic living factors such as higher education, job training, medical treatment, and even childcare will become impossible. More than 1.5 million Americans lack access to affordable housing as the country is facing a great affordable housing crisis.
One thing most American politicians don’t realize is that the development of affordable housing will positively impact American families, not to mention the economic growth. Here are the top 4 things you need to know about the housing crisis in the United States.
The Supply of Affordable Housing is Not Capable of Fulfilling the Demand
As per reports, the United States requires more than 12 million affordable housing units. Additionally, the percentage of available homes in the United States is also a much more concerning factor. Only 35 out of 200 people from the low-income group have access to affordable housing. The number is 55 for the people who belong to the very low-income group. However, keep in mind that these numbers don’t include the 550,000 homeless people in the United States. The lack of affordable housing means that more and more families are spending most of their monthly income on rents.
There are Rent-Burdened People
Rent-burdened households are known as the people who pay more than 30% of their monthly salary on rents. On the other hand, severely rent-burdened households are the people who pay more than 50% of their monthly salary on rents. As per studies, more than two-thirds of the renters are burdened by their rents. Additionally, the shade of the rent-burdened and severely rent-burdened people is increasing rapidly, says Maxwell Drever.
Even though these terms reflect technical meanings for the government, they are one of the most crucial factors relevant to the common people. When most of the monthly salary is being paid as rent, affording basic expenses such as health insurance, transportation cost, clothes, food, and medical expenses become difficult. In these scenarios, rents are nothing but a burden that prevents families from becoming financially stable.
Families Can Allocate the Budget Perfectly When the Rent is Stable
Affordable housing is one of the best ways to help the families who are living paycheck-to-paycheck to build a better future. Some people stated that their access to affordable housing has changed their lives entirely. Residents can avoid the problems of high interest while purchasing common household items, says Maxwell Drever.
Affordable housing also helps the tenants to avoid taking loans that come with high interest for recurring expenses such as medicine, food, gas, school supplies, etc.
Solving the Affordable Housing Crisis Requires Long-Term Planning and Commitment
To solve the affordable housing crisis, the private, public, and non-profit sectors need to work together. For instance, the political leaders in California proposed to build more than 3.5 million affordable houses by the end of 2025. They will also offer funding and tax credits to develop affordable housing units. The private sectors are also capable of bringing innovation to this problem.
Affordable housing is extremely important to make the American Dream come true. The Government cannot solve this problem just by developing some new affordable houses. Affordable housing will provide shelter for the people to sleep peacefully while also stabilizing the economy.