When housing comprises no more than 30% of a family’s budget, it is considered affordable.
Since the 1960’s, housing costs have far outweighed wage growth. Housing costs have increased by 229% since 1960 (The median cost of a home, adjusted for current inflation, would cost just $104,619 in 1960 but $240,500 in 2020). At the same time, median household income has only grown by 140% in that same time period, from $49,232 (adjusted for current inflation) in 1960 to $68,703 today.
“Today, the majority of poor renting families in America spend over half of their income on housing, and at least one in four dedicates over 70 percent to paying the rent and keeping the lights on.”
– Matthew Desmond, Evicted: Poverty and Profit in the American City
When families spend this much on paying for housing, little is left for other needs such as food, health care, child care, and transportation. When basic internet is rarely included in rental fees, things such as online education, streaming services, and job searches become almost impossible, particularly in the time of COVID-19.
Families find themselves amassing large amounts of utility debt because they must choose between shelter and basic utilities such as water or electricity. Although most utility companies have moratoriums on canceling services in harsh weather months, many families spend that time diverting utility bills to rent or other needs and then find themselves with massive debts and the threat of canceled services for the other months of the year. It is a cycle that many find difficult to break because so much time must be spent simply trying to keep a roof over one’s head.
When so much time must be designated to finding and keeping shelter, physical and mental health suffer.
“Incomes for Americans of modest means have flatlined while housing costs have soared. Only one in four families who qualifies for affordable housing programs gets any kind of help. Under those conditions, it has become harder for low-income families to keep up with rent and utility costs, and a growing number are living one misstep or emergency away from eviction.” –Eviction Lab
Physical Effects
Physical stressors are reduced when housing costs remain within affordable boundaries. Housing affordability is central to a family’s financial stability and is, at the same time, a family’s largest monthly expense. When more funds are available, they can be diverted to things that have been shown to improve physical health such as healthy food, health and dental care, self-care
Quality, well-constructed and well-maintained, affordable housing can increase physical health by reducing overcrowding that can lead to greater infectious disease while also limiting exposure to things such as allergens, neurotoxins, and other dangers.
Mental Effects
Studies show that quality affordable housing can have a positive impact on mental health. Fewer moves can provide more stability and less stress for both adults and children. This can also lead to better access to private, public, and health services (such as in-home health, public and social services).
When housing is affordable, it can create more avenues for victims of domestic violence to remove themselves from dangerous mental and physical situations.
Stable housing can also promote community connection, a sense of control over ones environment, and
positive self-esteem.
Lack of Affordable Housing and Its Effects on Children’s Health
Lack of stable, affordable housing has shown to have adverse effects on the health of children. When affordable housing frees up family resources, funding can be diverted to things that show to increase self-esteem and physical and mental health, such as participation in athletics, arts, and after-school programming.
Affordable housing can also help to create a more equitable learning environment. Children whose caregivers lack affordable housing are often forced to move frequently, requiring children to change schools and districts. This can create a disjointed and unstable learning environment.
Studies have shown that affordable housing can support
children’s education by:
- Reducing the frequency of disruptive moves.
- Helping families move to communities with higher-quality schools.
- Reducing overcrowding and other sources of housing-related stress.
- Helping families avoid housing-related health hazards, which in turn affect education.
- Supporting holistic community development, including new or improved schools, tutoring, and strong out-of-school-time programs.
- Reducing homelessness among families with children.
- Supporting parental spending on child enrichment activities.
