Affordable rental homes out of reach for more Alabamians in 2023, report finds
The poorest Alabamians are having a harder time paying rent than in years past, according to a new report by housing advocates.
About a third of renters in the state are considered extremely low-income and severely burdened by the cost of housing, according to the report by the National Low Income Housing Coalition which relied on self-reported data from the U.S. Census Bureau.
“As this year’s Gap report makes clear, extremely low-income renters are facing a staggering shortage of affordable and available homes,” said NLIHC President and CEO Diane Yentel
Most people in this category are disabled or senior citizens, said Jay Williams of the Alabama Low Income Housing Coalition.
“It’s folks that are either on a fixed income or are spending more of their time working than they are at their home,” he said.
Of extremely low-income renters, 22 percent are disabled, 23 percent are seniors, and 36 percent working.
According to the report, there is not enough housing for people in this group. Alabama has a shortage of 86,362 rental homes for the state’s lowest earners. That figure is up from about 73,000 in 2022, according to Williams, due to the pandemic and the increasing costs of living from inflation.
“As we continue to not have a state investment in the development of homes in our state, that problem is going to continue to get worse,” said Williams.
The Alabama Low-Income Housing Coalition continues to advocate that the state legislature fund the state’s housing trust fund, which was created but not funded. The trust fund could help cities incentivize affordable rental housing, said Williams.
“In theory they can apply for these funds and make them available for developers,” he said.
For renters who are considered low-income, earning between 51 and 80 percent of the area median income, compared to the very low-income, who earn just 30 percent, more than a third are cost burdened, meaning their rent costs more than 30 percent of their income, according to the report.
In Alabama it is necessary to have an income of $33,944 to afford a two-bedroom rental at fair market rate. Extremely low-income renters earn a maximum of 26,500 in a four-person household.
“In a state with extreme levels of poverty and historic injustices over hundreds of years, we have to be more intentional in our efforts to create a safe place for everyone to call home through state investments in housing,” said LIHCA Executive Director, Dr. Russell Bennett.
“This is the only way all Alabamians will have a chance to thrive.”