Affordable-Housing Shortage Leaves Millions of Poorest Americans Without Homes

Across major U.S. cities, apartments classified as “affordable” remain empty while the nation’s most impoverished renters cannot secure housing. In Austin, Texas, more than 4,500 units—nearly 16 % of the city’s affordable stock—sit vacant. Similar vacancy rates appear in Denver (13 % for 60 % AMI units) and Portland, Oregon (7.5 % overall). The National Low Income Housing Coalition reports only about 4 million affordable rental units exist for the 11 million extremely low-income renter households nationwide.

Americans Struggle to Secure Housing Despite Uptick in Vacant, Low-Income Units The poorest in the US can't find housing even as low-income units sit empty Associated Press

The Low-Income Housing Tax Credit (LIHTC) program, created 40 years ago, provides federal tax credits to developers who agree to keep rents low for at least 30 years. Since its inception, the program has financed nearly 4 million affordable units. A 2024 survey of state housing agencies shows that homes set aside for renters earning below 50 % of an area’s median income (AMI) account for only about 12 % of LIHTC-financed units; the majority target households earning at least 50 % of AMI.

Americans Struggle to Secure Housing Despite Uptick in Vacant, Low-Income Units

• Supply vs. need: 4 million units for 11 million extremely low-income renter households.

Americans Struggle to Secure Housing Despite Uptick in Vacant, Low-Income Units

• Income thresholds: Extremely low-income households earn below the federal poverty line (just under $16,000 for a single adult) or less than 30 % of local median income.

Americans Struggle to Secure Housing Despite Uptick in Vacant, Low-Income Units

• Rent burden: About three-quarters of extremely low-income renters spend more than half of their income on rent and utilities.

Americans Struggle to Secure Housing Despite Uptick in Vacant, Low-Income Units

• Vacancy rates: Austin’s overall affordable vacancy rate ? 16 % (CoStar); Denver shows 13 % vacancy for 60 % AMI units and 21 % for 80 % AMI units; Portland’s vacancy rate stands at 7.5 % (Portland Housing Bureau).

The poorest in the US can't find housing even as low-income units sit empty Americans Struggle to Secure Housing Despite Uptick in Vacant, Low-Income Units Associated Press

• Financial feasibility: True Ground Housing Partners notes that a unit for a household earning 60 % AMI in the Washington, D.C. area generates $1,715 in monthly rent but leaves only $140 after mortgage and operating costs.

The poorest in the US can't find housing even as low-income units sit empty

Austin’s housing department said it is giving preference to proposals that include 30 % AMI units and cited a city goal of building 20,000 extremely low-income units between 2018 and 2027, yet only 543 had been completed as of 2024. Carmen Romero, president and CEO of True Ground Housing Partners, emphasized that “the math does not lie,” noting the narrow rent margins make it financially untenable to provide units for the lowest-income tier without additional subsidies.

The poorest in the US can't find housing even as low-income units sit empty

• “I don’t make enough money really to afford anything,” — Mathew Davis

The poorest in the US can't find housing even as low-income units sit empty

• “It’s enormously complex and bureaucratic, and it raises the cost of construction enormously because the rules are so complicated,” — Chris Edwards, Cato Institute

The poorest in the US can't find housing even as low-income units sit empty

Austin officials plan to prioritize projects that incorporate 30 % AMI units, aiming to accelerate construction of housing for the most vulnerable residents. The policy debate continues over whether to reform the LIHTC program or shift greater resources toward tenant-based vouchers.

The poorest in the US can't find housing even as low-income units sit empty