Poor families in the United States are having an increasingly difficult time finding an affordable place to live. Tenant advocates now worry that the new tax bill, as well as potential cuts in housing aid, will make the problem worse.
An estimated 11 million families in the U.S. now pay more than half their income on rent, a number that has grown steadily as the supply of affordable housing shrinks. One issue is that rents are going up, even as incomes for many low-income families are staying level or falling behind.
The result, say tenant advocates, is that some people are forced to choose between paying for rent or other necessities, such as food and medicine.
Giese showed the impact in a tour of one neighborhood in the north side of the city, made up of modest single-family homes and duplexes. Almost every block had an empty lot or two, where houses had been torn down. Many of the homes still standing were boarded up, and a few burned out.
Giese says he’s sympathetic to families that don’t have enough money to pay the rent — even when it’s only about $700-900 on average — but he says all sides are being squeezed.
“It’s obviously very difficult for the tenants,” he says. “It’s very difficult for the landlords also because it’s stressful and ultimately the landlords lose money.”
And if they lose enough, he says, that’s one less affordable place to live.
It’s a big problem in this area. The U.S. Census has estimated that more than 50,000 families in Milwaukee County spent more than half their income on housing in 2016.
But it’s a problem across the country.
“There is no county in the U.S. where you can work a minimum wage job and afford a two-bedroom apartment,” says Rob Dicke, executive director of the housing authority in nearby Dane County, home of Madison, the state capitol.
Dicke says the average rent for a two-bedroom apartment in his county is $1,091 a month. He calculates that with a minimum wage of $7.25 an hour, it would require someone to have three full-time minimum wage jobs to be able to afford such a place.
He says the county would need to create 1,000 new affordable housing units every year, for the next 25 years, to keep up with demand. But no one expects that to happen.Dicke and other housing advocates fear that the tax law signed by President Trump last month could make matters worse. They argue that by lowering tax rates, it will make Low-Income Housing Tax Credits — used by developers to finance construction of affordable housing — less attractive.
Housing subsidies for renters could also be at risk. U.S. House Speaker able-bodiedas been eager to impose work requirements and time limits on federal housing aid.
“People want able bodied people who are on welfare to go to work. They want us to get people out of poverty, into the workforce,” he told Fox News last month. “That’s good for them, that’s good for the economy, that’s good for the federal budget.”
President Trump threw some cold water on that proposal this past weekend, saying that any welfare changes would need Democratic support, which is highly unlikely. Still, the Trump administration has proposed cutting billions of dollars in housing aid for low-income families. And Congress is under pressure to reduce spending because of growing deficits.
Susan Popkin, a senior fellow at the Urban Institute says, as it is, there isn’t enough housing aid to go around.
“Only one in five households in the country who are eligible for assistance actually get it,” she says.
And Popkin thinks those numbers could get worse. She notes that most rental housing built today is for the high-end market, not for low- and middle- income families.
U.S. Housing and Urban Development Secretary Ben Carson has said that more affordable housing might be funded in a new infrastructure bill, but Popkin is not optimistic.
“Everything that is coming out of this Congress, and this administration, is about cuts and shrinking, and moving people off and right now, I worry there’s nowhere for them to go,” she says.