The Households Disproportionately Affected by Rent Costs
It is worst in New Orleans, Buffalo, Cincinnati, Pittsburgh, Cleveland, and Birmingham, Ala.
There are deep-seated disparities in housing affordability across the country, particularly between Black, indigenous, and people of color (BIPOC) and white renter households.
A new report from Zillow shows that nearly half of all renter households remain cost burdened with BIPOC households disproportionately affected.
In 2022, they were spending around 34% of their income on rent while white households spent 29%.
No where was it worse than in New Orleans, where BIPOC households spent 45% of their income on rent compared to 32% for white households.
Other markets that reflect great differences in percentage of income directed toward rent include Buffalo, Cincinnati, Pittsburgh, Cleveland, and Birmingham, Ala.
“Notably, the median income of white renter households in New Orleans was 61% higher than that of BIPOC renter households,” Zillow said. “Although racial income gaps have narrowed over time, these figures underscore significant and persistent inequalities in housing affordability.”
In prepared remarks, Zillow senior economist Orphe Divounguy said, “Despite a recent slowdown in rent hikes, rent burdens remain critically high, particularly in BIPOC communities.
These financial pressures not only make homeownership increasingly elusive but also contribute to a broader economic disparity.”
“Combined with a persistent housing deficit and lower incomes, people of color have fewer housing options, are less likely to own, and those who do own have lower home values. We need focused efforts to tackle these issues, as stable housing is key to improving health, education and economic opportunities.”
Housing assistance programs are lacking, according to Zillow.
In 2022, approximately 19 million households qualified for housing choice vouchers (HCVs) based on their income, but only 2.4 million vouchers were available.
Between 2019 and 2022, consumers eligible for vouchers in North Port, Fla., surged by 43%. Notably, metro areas in Florida represent half of the 10 metros with the most significant increases in households that could be eligible for HCVs.
Cape Coral, San Antonio, and Orlando also have surged in numbers of residents eligible for HCVs.