Chapter 2: Findings

Worst case needs for housing assistance, already at all-time highs in 1993 and 1995, increased further between 1995 and 1997, despite continued vigorous economic expansion. In the fall of 1997, almost 5.4 million very-low-income renter households-containing some 12.3 million individuals-paid more than one-half of their income for housing or lived in severely inadequate housing. Among very-low-income renters, the share with worst case needs remained at 37 percent. These households represent 5 percent of the Nation's population and a disturbing one-sixth of all U.S. renters. Without Federal, State, or local housing assistance, these renting families face severe financial pressures-many are merely a missed paycheck or unexpected medical bill away from homelessness.

Finding 1: Despite a long and robust economic expansion, worst case housing needs reached an all-time high of 5.4 million families in 1997

Finding 2: Families with worst case needs are working harder than ever.

Finding 3: The affordable housing stock, as measured by the number of total rental units that are affordable for families with incomes at 30 percent of area median income, continues to shrink.

Finding 4: Between 1991 and 1997, worst case housing needs became more concentrated among households with incomes below 30 percent of the area median income.

Finding 5: Worst case housing needs became more concentrated among minority households during the 1990s.

Finding 6: Poor families living in the suburbs most often face worst case needs.

As highlighted above, the major findings of this report are that the economic expansion of the 1990s has exacerbated worst case needs, significantly increasing the number of households with these severe problems, especially among extremely-low-income families, minorities, and working families with children. The increase in needs has occurred despite increased work effort among extremely-low-income families because of marked declines in the number of housing units with rents affordable to incomes below 30 percent of area median income.

As the supplemental findings discussed below show, differentials in the likelihood of worst case needs by household type and location have changed less dramatically in the recent past. Nevertheless, they remain important for understanding the effects of this housing crisis and for wisely crafting policies to meet it.

Finding 7: Worst case housing needs continue to be a persistent problem for all demographic groups

Finding 8: Very-low-income renters in the West continue to be most likely to have worst case problems and least likely to receive any type of housing assistance.

Finding 9: When both very-low-income renters with some form of housing assistance and those without assistance are considered, the number of very-low-income renters with severe rent burdens rose by 500,000 families between 1995 and 1997.