If you’re unable to afford basic living expenses due to the housing market in the United States, you’re not the only one experiencing this situation. More than 4 million people in the United States are in desperate need of affordable housing whereas; the consequences of the affordable housing crisis make people homeless explains Maxwell Drever.
Not only is the price of the house but also the rent increasing rapidly. Nowadays, most Americans are spending 60% of their monthly salary on rents which ultimately leaves them with a very short amount of money to cover the basic expenses.
The affordable housing crisis in the United States is pressurizing the citizens and making them feel unhappy. Apart from that, the crisis is also threatening the economic growth of the country. If people don’t have a stable place to call their home; they won’t be able to focus on other factors of their life.
What are the primary reasons behind these conditions? Here are the top 3 reasons for the affordable housing crisis in the United States.
Low Supply of New Affordable Homes
Various researches and institutes of the United States have stated that the low supply of affordable homes across various cities of the United States is one of the biggest reasons for the affordable housing crisis. The reports also confirmed that the demand for affordable homes in Ney York is high, but the supply is so low that the demand can’t be fulfilled easily. Apart from that, the waiting time of both community and social housing is extremely long. Sometimes, people need to wait for more than 5 years to get access to social housing, says Maxwell Drever.
The condition of the temporary housing is very low and the waiting period of the social housing is massive . Therefore, Government should focus on improvement to enhance the local housing strategy.
There is a Massive Affordability Crisis
The United States is facing an affordability crisis. The RBC Economic Research was monitoring the cost of owning a house as per the market value. They have stated that the lack of affordable housing across different regions of the United States is becoming worse.
A report published in 2020 stated that most Americans are not capable of purchasing a home. This is undoubtedly a negative side of the Housing market. Additionally, Americans need to pay more than 65% of their monthly salary to cover the rent of their house.
Due to some inappropriate measures taken by the Government to fight the affordable housing crisis, the price of owning a home increased. Not only the Federal Government but also the local political leaders should address this issue as quickly as possible.
The population of the United States is increasing rapidly. Therefore, the supply of housing in the city is not capable of reaching enough people who are in desperate need of affordable property.
As per multiple reports, the United States is one of the fastest-rising populations in the world. Additionally, the population difference between each year is massive.
Maxwell Drever stated that New York is the fastest-growing city in the United States. However, the availability or supply of affordable homes is not relevant as per the population growth.
These are the top 3 reasons behind the affordable housing crisis in the United States. Government should take necessary actions to revamp the strategies to the housing market. Otherwise, the affordable housing crisis will undoubtedly bring severe consequences.