Addressing the Housing Crisis: Strategies for Sustainable Low-Income Housing Solutions

Personal Statement

My name is Samantha Beko and I am a running start student here at Lake Washington Institute of Technology. I wrote this research paper for my English 102 course, focusing on a critical issue: the low-income housing crisis. As a passionate advocate for social justice, I believe it’s essential to shine a light on this pressing issue that disproportionately affects vulnerable populations. Through research and analysis, I aim to raise awareness.

Abstract
This paper dives into the issue of low-income housing in the United States and the context behind this widespread problem. It explores key factors such as housing supply shortages, gentrification, discrimination within low-income housing, and the significance of increasing access to affordable housing. Discussion of potential solutions to address the affordable housing crisis will include promoting the construction of affordable housing units, prioritizing long-term investments in housing access and affordability, and integrating sustainability measures into low-income housing developments. By prioritizing equitable access to safe, affordable housing and implementing comprehensive strategies, policymakers, stakeholders, and advocates can work toward social equity.

Introduction
Millions around the U.S. struggle to find shelter due to financial constraints. The issue of low-income housing has become increasingly pronounced in urban centers, where soaring real estate prices and cost of living outpaces stagnant wages. This has pushed many individuals and families to live in unsafe conditions or remain unhoused. Housing is a basic human necessity, yet it remains out of reach for millions. Ensuring safe and affordable housing for low-income individuals requires immediate action and viable solutions.

Housing Supply Shortage
Over the past few years, the COVID-19 pandemic, record-high inflation, significant job losses, and rising rent prices have shaped the affordable housing landscape. Between 2019 and 2021, the shortage of homes affordable and available to renters with extremely low incomes worsened by more than 500,000 units, increasing from a shortage of 6.8 million to 7.3 million, and continuing a long-term trend of diminishing supply” (Yentel et al, 2023). Supply shortages are a top contributor to the low-income housing crisis. Those with deeper pockets—higher incomes and wealth—can afford higher rents if they do not buy, leaving lower-income renters fighting over an insufficient pool of available rental housing (Khan et al, 2022, para 1). Construction has not kept up with rising demand. According to Khan et al. (2022), homeownership vacancies dropped to less than 1 percent for three financial quarters in 2021, the lowest consistent level since 1957. Without vacant homes, many would-be homeowners could not buy a new house and either stayed in their existing house, further reducing the housing supply, or entered the rental market and subsequently increased the demand for rental housing (para 9). Rental costs have consistently increased faster than the cost of owning a home. Homeownership comes with tax benefits, financial security, and wealth building. Because the majority of low-income housing is rentals, this exacerbates the affordability problem low-income residents are facing.

Gentrification
Gentrification occurs when people from affluent backgrounds relocate and change the composition of neighborhoods. This causes displacement of original residents. Chong (2017) states that “During gentrification, poorer communities are commonly converted to high-end neighborhoods with expensive housing options such as high-rises and condominiums. As property prices increase, the original residents of the neighborhood are forced out” (para 4). A large influx of wealthy residents inflates rent prices which displaces low-income residents, who are now priced out. When developers build houses, they are not building for low-income families. There are frequent cuts in low-income housing federal assistance, so new buildings are usually intended for upper-income families (Chong, 2017, para 8). This leads back to the issue of supply shortages for renters. Many displaced residents will be forced to move to low-income neighborhoods with higher unemployment rates, and lower incomes. Additionally, an influx of people with different demographics can change the political and social landscape of a neighborhood. This means that many original residents will lose their voice in key issues, as well as no longer have their needs met.

Discrimination within Low-income Housing
People of color remain the highest percentage of low-income tenants. Twenty percent of black households, 18% of American Indian or Alaska Native (AIAN) households, and 16% of Hispanic households are extremely low-income renters. Six percent of white non-Hispanic households are extremely low-income renters (National Low Income Housing Coalition, 2023). Racial disparity is the result of higher homeownership rates and higher incomes among white households. Decades of racial discrimination in real estate, lending practices, and federal housing policies have made homeownership difficult to obtain for minorities (Rice & Swesnik, 2012). While federal laws prohibit race discrimination, these problems still exist today. A recent study from Stanford University found that black and Latino families need to earn more than white families to be able to live in certain neighborhoods (Andrews, 2015, para 6). A possible reason for this is that there are disparities in accumulated wealth, such as cash savings, retirement accounts, and home equity. More than half of all black households, including many with solid incomes, have less than $15,000 in accumulated wealth. Families and people of color are facing more setbacks in access to affordable housing than their poor white American counterparts.

Significance
Increasing access to affordable housing is the most cost-effective strategy for reducing childhood poverty and increasing economic mobility in the United States (National Low Income Housing Coalition). Having affordable housing options not only benefits residents, but it bolsters the economy as well. According to the National Low Income Housing Coalition, about seventy-five percent of all extremely low-income families pay more than half of their income on rent. Without affordable housing, families have constrained opportunities to increase earnings, causing slower GDP growth. Researchers estimate that the growth in GDP between 1964 and 2009 would have been 13.5% higher if families had better access to affordable housing. This would have led to a $1.7 trillion increase in income or $8,775 in additional wages per worker (National Low Income Housing Coalition). Investing in this problem will have a far-reaching positive impact on the economy, as well as on social equity.

Promote Construction
The largest and most viable solution to the housing supply shortage is building more units dedicated to low-income tenants. For this to occur, developers need incentives. Possible incentives run the gamut, from federal support and subsidies to better terms on construction lending to fewer local regulations and restrictions that significantly add to building costs (Ratcliffe, 2022, para 5). The government can leverage land-use and zoning reform policies to encourage the development of more affordable housing. Another building option is manufactured housing. Manufactured homes are pre-built and manufactured. They cost significantly less to buy and produce than an average home because they are built in factories using assembly-line techniques, which makes for a quicker construction process and reduces labor costs compared to on-site construction. They offer an affordable option for homeownership to those who have a low income.

Long Term Investments
Policymakers must prioritize improving housing access and affordability for low-income households through immediate and long-term investments. For decades, policies to address the complexities of the affordable housing crisis, such as rental assistance, have been underfunded, deferred, and inadequate (Khan et al, 2022). A large problem in today’s housing crisis is the lack of supply. In May 2023, the Biden administration announced the Housing Supply Action Plan to ease the burden of housing costs by boosting the supply of quality housing nationwide.

In essence, policymakers can address the rental crisis on the supply side in two ways. First, they can increase the total number of rental units, which can help slow rental inflation as more renters find the housing that they want. Second, they can focus on building housing units slated for lower-income renters. This increases supply, especially for those struggling the most to find affordable, stable, and secure housing(Khan et al, 2022).

Congress can invest directly in the construction of low-income housing units. Policymakers should be federally mandating low-income housing and protecting tenants living in low-income housing. Congress needs to do a better job of guaranteeing renters’ rights. Additionally, it is hard for tenants who previously have been evicted to find new housing due to stigmas. Congress can seal eviction records and eliminate it on credit reports as well as from public records.

Future Sustainability
Sustainability is an important topic in the realm of affordable housing. Low-income housing is often built the cheapest way possible, with corners being cut in an effort to save money. According to Walsh (2018), ” To keep costs down during the rise of cheap housing due to the National Housing Act of 1934, builders utilized asbestos. Asbestos was a common inclusion in construction materials because of its resistance to flames and chemical reactions, sound absorption, and low cost (para 5). Unfortunately, after asbestos enters the body, it finds its way into internal organs. This can cause tumors and cancer to develop. Building with safe and sustainable materials is crucial for the safety and long-term viability of low-income housing. Green housing can also save residents money in the future. Solar panels could generate most energy low-income households require, meaning only a small percentage needs to come from utility companies. Insulated walls keep heated or cooled air in, and outside air out, meaning residents can save on heating and cooling bills. Low-emissivity windows (usually called Low-E windows) have a special coating that reflects interior temperatures inside, keeping homes warmer in the winter and cooler in the summer. (Reid, n.d.). Additionally, low-flow attachments to showerheads, toilets, and faucets save water and reduce the cost of water bills. Incorporating sustainability measures into low-income housing not only improves living conditions for residents but also contributes to long-term environmental resilience and community well-being.

Conclusion
The dream of home ownership is slipping out of reach for an increasing number of poor families. The lack of housing supply, racial discrimination, and the rise of gentrification in poor neighborhoods will continue to increase if no action is taken. Millions of individuals and families will continue to suffer in dire conditions. However, there is still hope for the low-income housing crisis. Prioritizing affordable housing initiatives will improve the economy, as well as the lives of many Americans. Policymakers have the opportunity to invest into the future of affordable housing. Integrating sustainability, slowing rental inflation, and investing in low-income housing construction are all crucial factors in slowing down and addressing this crisis. It is imperative for action to be taken now before the situation becomes irreversible.

References

Andrews, E. (2015, June 25). Stanford study finds Blacks and Hispanics typically need higher incomes than whites to live in affluent neighborhoods. Stanford News. https://news.stanford.edu/2015/06/25/segregation-neighborhood-income-062515/

Chong, E. (2017, September 17). Examining the negative impacts of gentrification. Georgetown Law. https://www.law.georgetown.edu/poverty-journal/blog/examining-the-negative-impacts-of-gentrification/

Khan, A., Weller, C. E., Roberts, L., & Zonta, M. (2022, August 22). The rental housing crisis is a supply problem that needs supply solutions. Center for American Progress. https://www.americanprogress.org/article/the-rental-housing-crisis-is-a-supply-problem-that-needs-supply-solutions/

Ratcliffe, J. (2022, February 16). Opinion: How we can solve the nation’s affordable housing crisis. CNN. https://www.cnn.com/2022/02/16/perspectives/affordable-housing-crisis/index.html

Rice, L., & Swesnik, D. (n.d.). Discriminatory effects of credit scoring on communities of color. https://nationalfairhousing.org/wp-content/uploads/2017/04/NFHA-credit-scoring-paper-for-Suffolk-NCLC-symposium-submitted-to-Suffolk-Law.pdf

Reid, S. (n.d.). Turning crisis into creation with green affordable homes. Green America. https://www.greenamerica.org/your-home-detoxed/turning-crisis-creation-green-affordable-homes

The Solution. (2023). National low-income housing coalition. https://nlihc.org/explore-issues/why-we-care/solution

‌President Biden Announces New Actions to Ease the Burden of Housing Costs. (2022, May 16). The White House. https://www.whitehouse.gov/briefing-room/statements-releases/2022/05/16/president-biden-announces-new-actions-to-ease-the-burden-of-housing-costs/