In order for housing to be considered ‘affordable’, it should take up 30% or less of a household’s total income. An increasingly disturbing amount of Americans have no choice but to pay more than that in housing expenses. Many people have to spend more than 50% of their income just on housing, putting many people in a financial predicament. This crisis has negative ripple effects throughout the entire economy.
According to Reuters, “the United States has an estimated shortage of as many as 4 million affordable housing units.” There is an intense competition for starter homes because investor companies are purchasing a significant amount of homes, driving up the cost for first-time buyers. The Biden administration has taken steps to set aside resources to build more affordable housing, which will hopefully ease the burden for many families.
Eric Nelson is a Principle Broker and Finance expert who specializes in insurance products and financial services. He is also an active NAACP member and proud social justice advocate who is passionate about affordable housing.
