SEATTLE, Oct. 13, 2017 /PRNewswire/ -- Federal
housing vouchers for low-income renters are too low to cover the
market renti in many of the nation's job centers –
making them unusable for millions of renters seeking assistance to
cover housing costs.
Rents have skyrocketed across the country, especially in growing
job markets, where high demand for a limited number of units has
made it difficult for renters of any income to find a place to
live.
The U.S. Department of Housing and Urban Development (HUD)
Housing Choice Voucher program is intended to give renters enough
to afford 40 percent of the rentals in their market. The value of
the vouchers is set according to HUD's Fair Market Rent index
(FMR). However, Zillow's research found that 75 of the 100 largest
U.S. counties do not meet this threshold. In 15
countiesii, voucher holders could rent less than 10
percent of available rentals.
For the typical renter, monthly housing costs require a larger
share of income than they did in the 1980s and 1990s. For
low-income renters, the situation is much worse. In nearly all of
the nation's largest markets, low-income renters can expect to
spend more than 45 percent of their monthly income on
rentiii, significantly more than the suggested 30
percent that guides most federal policy. Vouchers are designed to
help low-income renters afford housing, but long wait lists and the
fact that HUD's FMRs aren't keeping up with on-the-ground rents in
many markets limit the efficacy of the program.
HUD's FMRs are not increasing at the same pace as actual rents
in many places. Fair Market Rent growth trails Zillow® Rent Index
(ZRI) appreciation in half of the 100 counties analyzed. In
Lee County, Florida, home to
Fort Myers and Cape Coral, the FMR has risen 2.1 percent
since 2012, while the ZRI increased 43.7 percent.
In the counties where voucher-value growth doesn't keep pace
with market rents, voucher-holders have fewer options for rental
units, and this is especially true in counties where rents are
increasing fastest. In Los Angeles
County, rents have risen 25 percent since 2012, but FMR has
grown only 6.8 percent. Just 7 percent of rental listings in the
county are considered affordable even with a housing voucher.
"Many markets with strong rent growth tend to also have the
types of jobs that could help renters climb the socioeconomic
ladder," said Zillow Chief Economist Dr. Svenja Gudell. "However, many low-income
households - even those with a voucher - are increasingly being
priced out of these markets, unable to find affordable housing
options near these jobs. If rents and HUD's Fair Market Rents
continue to move at different paces, this affordability crisis will
only worsen for low-income renters."
In most major markets, there are far more renters who need the
assistance of a housing voucher than there are vouchers. For people
who can't get a housing voucher, the consequences of rising rents
can be even more severe. In many major job markets, rising rents
lead to a larger homeless populationiv. A five percent
increase in rents in the New York
metropolitan area would lead to an estimated 3,000 more homeless
people. The homeless population in Los
Angeles would grow by an estimated 2,000 people if a similar
rent increase occurred.
County
Name
|
Percent of 2BR
Units
Listed Below 2BR FMR
|
ZRI Change
Since 2012
|
FMR Change
Since
2012
|
Los Angeles,
CA
|
7.1%
|
24.6%
|
6.8%
|
Cook, IL
|
20.2%
|
12.1%
|
28.6%
|
Harris, TX
|
14.2%
|
17.1%
|
4.2%
|
Maricopa,
AZ
|
27.1%
|
16.2%
|
8.5%
|
San Diego,
CA
|
23.4%
|
24.9%
|
26.3%
|
Orange, CA
|
8.9%
|
22.3%
|
9.7%
|
Kings, NY
|
3.8%
|
35.4%
|
15.0%
|
Miami-Dade,
FL
|
3.4%
|
19.1%
|
15.1%
|
Dallas, TX
|
11.3%
|
24.2%
|
18.8%
|
Queens, NY
|
3.2%
|
28.8%
|
15.0%
|
Riverside,
CA
|
22.0%
|
18.0%
|
4.2%
|
San Bernardino,
CA
|
41.7%
|
16.8%
|
4.2%
|
Clark, NV
|
37.8%
|
9.4%
|
-6.8%
|
King, WA
|
12.5%
|
43.0%
|
40.6%
|
Wayne, MI
|
48.4%
|
3.1%
|
14.2%
|
Tarrant,
TX
|
21.3%
|
18.5%
|
12.7%
|
Santa Clara,
CA
|
8.8%
|
39.7%
|
36.8%
|
Broward,
FL
|
19.9%
|
11.6%
|
10.1%
|
Bexar, TX
|
30.3%
|
18.6%
|
26.8%
|
New York,
NY
|
0.1%
|
16.9%
|
15.0%
|
Philadelphia,
PA
|
31.9%
|
10.3%
|
12.7%
|
Alameda,
CA
|
16.1%
|
47.7%
|
55.0%
|
Middlesex,
MA
|
5.1%
|
18.0%
|
21.1%
|
Bronx, NY
|
24.6%
|
13.3%
|
15.0%
|
Nassau, NY
|
18.0%
|
22.1%
|
11.7%
|
Palm Beach,
FL
|
29.5%
|
23.4%
|
20.4%
|
Cuyahoga,
OH
|
31.8%
|
11.2%
|
7.4%
|
Hillsborough,
FL
|
20.0%
|
16.1%
|
9.5%
|
Allegheny,
PA
|
23.6%
|
17.8%
|
18.6%
|
Oakland,
MI
|
16.6%
|
14.3%
|
14.2%
|
Franklin,
OH
|
36.6%
|
12.2%
|
12.2%
|
Hennepin,
MN
|
10.1%
|
20.6%
|
20.1%
|
Orange, FL
|
16.9%
|
19.9%
|
7.1%
|
Fairfax,
VA
|
29.3%
|
5.9%
|
15.9%
|
Contra Costa,
CA
|
35.6%
|
35.0%
|
55.0%
|
Zillow
Zillow® is the leading real estate and rental marketplace
dedicated to empowering consumers with data, inspiration and
knowledge around the place they call home, and connecting them with
the best local professionals who can help. In addition, Zillow
operates an industry-leading economics and analytics bureau led by
Zillow's Chief Economist Dr. Svenja
Gudell. Dr. Gudell and her team of economists and data
analysts produce extensive housing data and research covering more
than 450 markets at Zillow Real Estate Research. Zillow also
sponsors the quarterly Zillow Home Price Expectations Survey, which
asks more than 100 leading economists, real estate experts and
investment and market strategists to predict the path of the Zillow
Home Value Index over the next five years. Launched in 2006, Zillow
is owned and operated by Zillow Group (NASDAQ:Z and ZG), and
headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
i Measured by the Zillow Rent Index and Zillow Rental
Listings data.
ii It is likely that online real estate listings may
disproportionately miss less expensive rental properties. There is
no known national database of rental listings. We don't expect
missing some of the least-expensive rentals to be more or less
severe in some areas compared to others.
iii
https://www.zillow.com/research/low-income-rentals-unaffordable-16158/
iv
https://www.zillow.com/research/rents-larger-homeless-population-16124/
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SOURCE Zillow, Inc.