HOUSTON HOUSING

About Affordable Housing

The Effects of the
Affordable Housing Crisis

The lack of affordable housing is an overall national issue

The shortage of affordable housing is not just an issue in the city of Houston. Unfortunately, it is a nationwide concern that affects several states and people.  Over the years, housing prices gradually increased but worsened after the pandemic—the shortage of affordable housing increased. Now, despite the positive progress from the effects of the pandemic, several states including Texas continue to face a shortage of affordable housing and a rise in cost-burdened households who struggle to afford either rent or housing.

AFFORDABLE AND AVAILABLE RENTAL HOMES PER 100 EXTREMELY LOW INCOME RENTER HOUSEHOLDS ACROSS THE U.S.

Texas and a few other states are flagged as the most severe states with only 30 or fewer affordable and available rental homes per 100 extremely low income renter households.

How severe is the lack of affordable housing in Texas?

Texas has around 25 available and affordable rental homes per 100 extremely low income renter households. Unfortunately, that is only 25% of available housing for the households in need.

How does Texas compare to the other states? There are 10 states flagged as “severe” for having 30 or fewer available and affordable housing. Overall, Nevada ranks as the most severe state with only 17 available and affordable rental homes per 100 extremely low income renter households. With 25 available and affordable housing units, Texas sits in the middle out of all the severe states.

Other cities in Texas face the affordable housing crisis

Photo featuring Austin homes built with a lowered minimum lot size in an East Austin neighborhood on Oct. 7, 2023.

RATIO OF HOUSING PRICE TO INCOME, LARGE TEXAS METROS (2010–2022)

The traditional ratio of housing price to income is 3:1. Any higher indicates unaffordable housing prices. Throughout Texas, housing prices have far exceeded this ratio.

Unfortunately, housing prices rise higher than wage

Photo featuring the affordable housing in Channelview, East Aldine developed by the Harris County Housing Authority.


ANNUAL CHANGES IN HOME PRICES, RENTS, AND WAGES IN THE HOUSTON METRO AREA (2015-2021)

As inflation increases throughout the years, the median income has not risen as high as home price. Rather, wage raises are closer to rising rent costs, but not enough to own a house.

HOUSEHOLD RENTALS VS. AFFORDABLE & AVAILABLE RENTAL HOMES LARGE TEXAS METROS (2021)

Throughout Texas cities, there are not enough affordable and available rental homes in comparison to how many extremely low income household renter households there are.

Cost-burdened households range in demographics

Photo featuring Chris and Jimna Williams with their children and their future home.

Who is affected by the shortage of affordable housing?

There are many factors to account for when considering the type of households affected by the affordable housing crisis. One of the main factors to consider is a household’s income level: households spending 30% or more of their income are cost-burdened. This can include single-family households to multi-family households, and they may either be struggling homeowners or renters. These cost-burdened households also vary in race and ethnicity.

AFFECTED DEMOGRAPHICS:
EXTREMELY LOW INCOME RENTER HOUSEHOLDS

Texas and a few other states are flagged as the most severe states with only 30 or fewer affordable and available rental homes per 100 extremely low income renter households.

What can be done about the issue overall?

All matters aside, what’s next? Knowing that there are concerns and issues about affordable housing acknowledges that the problem exists. In that case, what can be done now to resolve the issue?

The issue of affordable housing itself is a complex and nuanced issue. As this issue pertains not only to Texas, but nationwide, there are powers that lie within the federal government, state governments, and local governments. Take the first step and contact your local policymakers to ensure that actions are being taken to prevent the affordable housing crisis from worsening.

While the issue of affordable housing continues to persist in several states, local policymakers can take action to ensure that matters do not get worse.

Sources

2023 Houston Area Survey Report.  (2023, May 15). Kinder Institute for Urban Research.
2023 State of Housing Report.  (2023, July). Kinder Institute for Urban Research.
2021 Texas Gap Data.  (2021). National Low Income Housing Coalition.
Median Income in the Past 12 Months.  United States Census Bureau.