If you’ve tried to rent a home or an apartment recently, you are acutely aware of how inflation has hit the housing rental market.
In 2023, homelessness spiked as many lower-income Americans were forced out of the market. The U.S. Housing and Urban Development (HUD) department estimated that more than 650,000 people were living in shelters or outside in tents or cars. That’s an increase of nearly 12% over 2022.
More expensive areas of the country, like California and New York, often see increases in unhoused residents due to high rent costs. But recently, even more affordable places, including Tennessee, have also seen a spike in housing costs.
The crisis has even found its way into the national debate as economists and financial experts urge presidential candidates to weigh in on the issue. The federal government is even investigating a prominent Atlanta-based property ownership group for its alleged role in driving up rental prices.
But what this all means is that it’s simply harder for lower-income people to find affordable housing. This drives up the number of homeless families.
No Way to Pay
While housing costs have skyrocketed over the past three years, that doesn’t mean wages are increasing at the same level. The federal minimum wage has remained at $7.25 since 2009. Granted, most companies that want to retain good workers will pay more than the minimum wage, but lower-income workers still aren’t earning enough to afford rent.
The National Low Income Housing Coalition’s (NLIHC) annual Out of Reach report found that there is no state left in the country where an adult earning the minimum wage for 40 hours a week of work can afford a two-bedroom apartment. And 93% can’t afford a one-bedroom apartment.
Inflation is also affecting low-income households. Because it costs more to buy groceries, put gas in the car and pay for other necessities, these higher prices cut into a family’s ability to make the rent. This is true even if the rent or mortgage hasn’t yet increased.
Close the Gaps
With these challenges, affordable housing advocates believe it will take a combination of efforts to reduce the number of unhoused Americans.
There’s no silver bullet to solve the issue of homelessness when inflation and housing costs are rising. It will take a combination of federal and state programs, local advocacy for more affordable housing and overall structural reform to provide solutions.
Unfortunately, some short-term measures that were enacted during the COVID-19 pandemic have come to an end, or soon will be. This increases homelessness. Congress should establish more permanent Emergency Rental Assistance funding while advocacy groups like TORCH work to provide more Housing First programs nationwide.
Housing First prioritizes providing permanent, affordable housing to unhoused individuals and families, allowing them to have a place to live while they are seeking welfare and other financial assistance or while they are seeking treatment for medical or mental health issues that have contributed to their situation.
At TORCH, we believe that “sheltering in a future home” is a more cost-effective approach that gets individuals and families off the streets while connecting them with other available resources.
If you or someone you know in the Oak Ridge/Anderson County area needs help finding a forever home, contact us at (865) 318-4788 or by sending us a message online.