NLIHC Report Shows Severe Shortage of Affordable Housing

The National Low Income Housing Coalition (NLIHC) recently released the latest version of its annual report, “The Gap: A Shortage of Affordable Homes.” Each year, the NLIHC measures the availability of rental housing affordable to extremely low-income households and other income groups. 

Based on the American Community Survey Public Use Microdata Sample (ACS PUMS), the report presents data on the affordable housing supply and housing cost burdens at the national, state, and metropolitan levels. The report also examines the demographics, disability and work status, and other characteristics of the extremely low-income households most impacted by the national shortage of affordable and available rental homes.

One Takeaway: According to the report, there is a severe shortage of affordable housing for the lowest-income renters. The U.S. has a shortage of 7.3 million rental homes affordable and available to renters with extremely low incomes. Only 34 affordable and available rental homes exist for every 100 extremely low-income renter households. 

The shortage of affordable and available homes for extremely low-income renters impacts all states and the 50 largest metro areas, none of which have an adequate supply for the lowest-income renters.  Among states, the supply of affordable and available rental homes ranges from 14 affordable and available homes for every 100 extremely low-income renter households in Nevada to 57 in South Dakota. Thirty-five of the largest 50 metros have fewer than the national level of 34 affordable and available units for every 100 extremely low-income renters.  

One level deeper: The report says the shortage is worsening. Between 2019 and 2022, the shortage of affordable and available rental homes for extremely low-income renters worsened by nearly 500,000 units, increasing from a shortage of 6.8 million to 7.3 million.  

NLIHC is advocating for increased federal investment to address this shortage. NLIHC says state and local governments have an important role to play in improving access to affordable housing, by providing subsidies, reforming zoning, and reducing other local restrictions to bolster housing production. But these local reforms aren’t enough without federal resources to eliminate the shortage of affordable rental housing for the nation’s lowest-income renters.