Seventy-five percent of extremely low income families cannot find affordable rental housing, but it’s not for lack of effort (iii). Rather, a deficit of affordable housing leaves more than 10 million U.S. families either stranded or teetering on the edge of homelessness. This is particularly common in Florida, where only 22 units of affordable housing are available per 100 extremely low income families (6). Regardless of political affiliations, we can all agree that increasing the inventory of affordable rental housing is a prerequisite for ending homelessness and giving hope to America’s refugees – extremely low income families making less than 30% of the average median income (1).
“Affordable housing” is defined as housing that costs 30% or less of a person’s monthly income. A household that spends more than 30% of their income on housing and utility costs is considered “housing burdened” and at risk of becoming homeless. HUD Secretary Julian Castro states that “there is a shortage of 7.2 million affordable housing units for the nation’s more than 10 million extremely low income families.” The direct result is that 75% of these families are forced to pay over 50% of their wages on rent, making them severely cost burdened.
Eventually, this burden will catch up with them. A missed paycheck or medical emergency might be the the straw that breaks the camels back, as these families are forced to make hard choices and compromises to make ends meet. Necessary medications are foregone, payday loans taken out, or credit cards maxed out with unsustainable debt. The consequences of these choices inevitably lead to a Catch 22 with no way out besides shelters, doubling up, living in motel rooms, sleeping in cars, or worse – becoming homeless. And in Central Florida, one in every 50 families and one in every 17 children will experience homelessness in the course of a year (45).
These extremely low income families are the working poor. They are the subject of the Heart of Florida United Way’s A.L.I.C.E. (Asset Limited Income Constrained Employed) Report, which details the struggles of Floridians trying to survive with only the most basic necessities. According to this report, the Household Survival Budget for a family with 2 children is $47,484; which only includes Housing, Child care, Food, Transportation, Health Care, and 10% Miscellaneous (i.e. cell phone expenses). However, the median family income is $45,040 per year. It is estimated that 3.2 million households, or 45% of total households in Florida, are struggling to afford these necessities (4).
Add to this equation wage stagnation and the fact that only 22 units of affordable housing exist per 100 extremely low income families; it’s no wonder that nearly 70,000 homeless youth were enrolled in Florida’s schools in 2013. That is, 18 % of the Nation’s homeless school-aged children live in Florida (7). The psychological, nutritional and academic consequences for these students are the only part of this that adds up, concomitantly increasing the costs of public education, social services, and future prison expenses in the worst case scenarios. But most importantly, even the brightest children may be robbed of the chance to go on to lead healthy, balanced, and productive lives. Whether your political affiliations would have you fix this by increasing the minimum wage or not, we can all agree that there is a deficit of housing that is both affordable and available. Increasing this inventory is a public good and worthwhile investment in preventing family homelessness.