Become a digitalPLUS subscriber. 99¢ for 4 weeks.
BusinessReal EstateThe Real Estate Wonk

Housing more difficult for low-income people to afford, HUD says

The number of renters experiencing “worst case” housing needs has increased by almost half since the beginning of the Great Recession, according to a just-released summary of a forthcoming report from the U.S. Department of Housing and Urban Development.

In 2007, there were 5.9 million very low-income households that were designated as having worst-case needs, according to the summary.

By 2011, 8.5 million households qualified as worst-case scenarios because their rent burdens were extreme — more than half of their income went to rent, HUD said. A small percentage also qualify as worst case situations because their living conditions are “severely inadequate,” the summary said.

That 43.5 percent increase “is due to substantial increases in rental housing demand and weakening incomes that increase competition for already-scarce affordable units,” said HUD’s preview of the report it plans to submit to Congress.

The increased demand for leased units is due mainly to a reduction in homeownership rates because of the proliferation of foreclosures and unemployment, HUD said.

“The entrance of former homeowners into the rental market is driving up costs for what little rental housing there was that low-income people could afford,” said Sheila Crowley, president and CEO of the National Low Income Housing Coalition, in a statement.

HUD calculates there are 19.3 million “very low-income renters” in the U.S., defined as households with incomes below 50 percent of the area median income.

“The data show that while the economy has been slowly recovering from the 2007–2009 recession, the economic benefits of recovery had not yet reached millions of very low-income renters in 2011,” HUD said.

Have a real estate news tip or experience to share? Email me at steve.kilar@baltsun.com.

Copyright © 2014, The Baltimore Sun
Related Content
  • Local housing market Top 10s for 2012 [Pictures]
    Local housing market Top 10s for 2012 [Pictures]

    Which ZIP codes and city neighborhoods in the Baltimore metro area had the most home sales? The biggest drops in price? Baltimore Sun reporter Steve Kilar analyzed data from Metropolitan Regional Information Systems' RealEstate Business Intelligence to find the extremes during 2012,...

  • Most expensive Baltimore-area communities 2012 [Pictures]
    Most expensive Baltimore-area communities 2012 [Pictures]

    These are the most expensive ZIP codes in the Baltimore metro area and neighborhoods in the city during 2012, according to an analysis by Baltimore Sun reporter Steve Kilar of average sale price data from Metropolitan Regional Information Systems' RealEstate Business Intelligence. Areas...

  • Average price change for Baltimore-area homes - All of 2012
    Average price change for Baltimore-area homes - All of 2012

    ul#tabnav { /* general settings */ border-top-right-radius: 15px;text-align: left; /* set to left, right or center */ margin: 1em 0 1em 0; /* set margins as desired */ font-weight: bold; /* set font as desired */ border-bottom: 1px solid #bfc7c7; /* set border COLOR as desired */...

  • Most expensive Baltimore-area communities [Pictures]
    Most expensive Baltimore-area communities [Pictures]

    These are the most expensive ZIP codes in the Baltimore metro area and neighborhoods in the city during the first half of 2012, according to a Baltimore Sun analysis of average sale price data from Metropolitan Regional Information Systems' RealEstate Business Intelligence. Areas were...

  • Housing market Top 10s in the Baltimore area in early 2012 [Pictures]
    Housing market Top 10s in the Baltimore area in early 2012 [Pictures]

    Which ZIP codes and city neighborhoods in the Baltimore metro area had the most home sales? The biggest drops in price? The Baltimore Sun analyzed data from Metropolitan Regional Information Systems' RealEstate Business Intelligence to find the extremes during the first half of 2012,...

  • Top tax bills in Baltimore City
    Top tax bills in Baltimore City

    The homes and commercial properties with the biggest property-tax bills in Baltimore are largely within walking distance of each other, with most clustered downtown and around the Inner Harbor. The Baltimore Sun analyzed city records to rank the properties with the most taxes — after...

Comments
Loading