If you’re struggling to afford a home, you’re not alone. In the past five years, home prices have risen by over 60% due to increased demand and a shortage of homes. Rent prices have also increased dramatically year over year — an average of over 8% since 1980 — and recently increased by 20% in 2021. Rising costs of housing combined with high inflation rates have placed a large financial burden for many people. In 2020, 46% of all households had unaffordable rent or mortgage payments, meaning they spent more than 30% of their income on housing.
If you’re looking for an affordable home or just want to learn more, this article is for you. We’ll dive into affordable housing so you can stay informed and find resources you need. Read on to learn about affordable housing, including definitions, history, and how the government manages dozens of policies and programs.
What is affordable housing?
Affordable housing is housing that people can afford for 30% of their income or less, although this definition may be outdated as most people actually spend about 32% of their income on housing. Affordable housing is also colloquially used to refer to specific housing assistance programs.
In the US, there are two primary affordable housing programs: public housing and subsidized housing. Low-income housing is another common term that generally falls under the public housing umbrella, although some governments differentiate them.
Unfortunately, the need for affordable housing is far greater than the number of available homes. For example, the waitlist for a subsidized one-bedroom apartment in King County, WA, is over five years long, meaning many people end up with housing insecurity.
Why affordable housing matters
The majority of people who live in affordable housing are from underrepresented communities, including women with children, immigrants, people of color, the elderly, and people with disabilities. People from all walks of life utilize affordable…