According to a report by The Associated Press on September 7, the poorest groups in the United States are facing a severe shortage of affordable housing. However, surveys of state housing agencies show that most low-income housing projects that have received funding in recent years are aimed at those with relatively higher incomes. In response to this issue, The Associated Press conducted investigations in cities such as Austin.
According to an investigation by the Associated Press, more than 4,500 units of housing classified as 'affordable housing' in Austin are vacant, accounting for about 16% of the total. As the rent for these units approaches market prices, the vacancy rate of affordable housing in some cities is still increasing. As a result, affordable housing becomes increasingly neglected, as the poorest 'low-income groups' simply cannot afford it.
According to the classification by the U.S. Department of Housing and Urban Development, groups with incomes around 50% of the regional income median are considered “low-income populations,” while those with incomes below 30% of the median are referred to as “very low-income populations.”
A federal program called “Low-Income Housing Tax Credit” attempts to address this issue—developers can receive tax relief if they rent houses to low-income individuals for at least 30 years.
However, data from the National Housing Board shows that in 2024, only 12% of the new housing funded by this program was allocated for tenants with "very low incomes". The majority of homes were rented to "low-income individuals". In Austin, for example, renters must have an annual income of about $47,000, while those with very low incomes who are most in need of housing have an annual income of less than $28,000.
Since its establishment 40 years ago, this project has funded the construction of nearly 4 million affordable housing units across the United States. However, some experts believe its efficiency is low.
Kato Institute economist Chris Edwards said, "This system is extremely complex and bureaucratic. The rules are too cumbersome, which significantly increases the construction costs." He pointed out to Congress that the complexity of the project has "given rise" to a profession of lawyers and accountants who are specialized in managing it.
He suggested: “If we want to subsidize affordable housing, it would be better to issue housing vouchers (government-issued rental subsidies) directly to tenants.”
Some also believe that these two types of projects can complement each other. Properties built through tax credits already have reduced rent, and tenants who enjoy this benefit can still use housing vouchers in addition to their rent benefits.
However, reports indicate that the funding gap in the United States remains substantial. Only about one-fourth of the “very low-income population” receives housing vouchers, and the waiting lists for these vouchers can last for several years. Real estate developers argue that providing units for the very low-income population without housing vouchers is economically “not feasible”.
Meanwhile, in cities like Austin, Denver, and Portland, the rent for affordable housing is gradually approaching the level of market-rate apartments.
As a result, some people prefer to pay a little more for apartments at market prices, as there are fewer approval requirements and the process is faster. This has led to an increasing number of vacant affordable housing units.
Working for a affordable housing developer, Fischer said when talking about applying for affordable housing: "I must check each bank statement, each paycheck, each bill, and even every transfer record between you and your friends."
He also added, “When we approve apartments based on market prices, the approval can be granted in just two minutes. However, regrettably, for affordable housing... it takes a much longer time.”
Austin City had set a goal from 2018 to 2027 to build 20,000 homes for 17% of the city's "very low-income families." However, city documents show that as of 2024, only 543 homes have been built. Meanwhile, all 15,000 homes planned for "low-income groups" have been completed.
In response to questions from The Associated Press, the Austin housing department stated that they recognize the need to provide more housing for the poorest groups, and are taking measures to address this issue.
