Gap between Mecklenburg rents and what people can afford keeps growing, report says
The gap between rent prices and what Mecklenburg County families can afford continues to widen, jeopardizing housing stability for thousands of tenants, according to a new report.
Despite significant public and private investments, the greatest shortage of affordable units continues to be for the lowest-income households. And early indicators show the COVID-19 pandemic is already affecting the county’s housing stability.
“Households who are already facing housing instability and are at that brink, are maybe pushed over the edge with something like job loss,” said Bridget Anderson, a social research specialist with the UNC Charlotte Urban Institute and the report’s author.
“It’s important to note that the full impact of COVID on the economy and housing instability will likely take years to uncover.”
The annual report tracks indicators of housing instability, including how many households spend more than they can afford on rent, those that are in overcrowded living situations and those at risk of eviction and homelessness.
There’s a more than 23,000-unit deficit of units affordable for households at 30% of the area median income, or $26,200 for a family of four, according to the report.
“This means that 77% of extremely low income households are renting units that are more expensive than they can afford,” Anderson said in an interview.
Those who spend more than 30% of their gross income on rent or mortgage payments and utilities are considered to be “cost-burdened” by federal standards. That can lead to difficulty paying for other necessities such as food, medicine or transportation, according to the U.S. Department of Housing and Urban Development.
These lowest-income families have been cost-burdened for years, Anderson. What is new, she said, is that those burdensome rent costs are affecting more middle-income households as well.
Among the report’s key takeaways:
- The number of affordable units in the county is decreasing as need increases. The share of rental units under $800 a month has dropped from 51% of the total market in 2010 to 25% in 2018.
- Black and Latino renters are cost-burdened at a higher rate —58% and 62%, respectively — than the 31% of white renters. Cost-burden rates for Black and Latino households both increased over the previous year, while white renters saw a small decrease.
- In all, nearly 82,000 Mecklenburg renter households are cost-burdened.
The report also offers insight into the county’s homelessness response:
- More than 3,100 people were identified as actively homeless as of June 30, an increase of 1,000 people over the previous June.
- Of those, more than 500 are chronically homeless, and nearly 200 are veterans.
- The average length of stay in an emergency shelter continues to increase. It was 118 days in 2019, up from 105 the year before. Homeless advocates have said the few permanent affordable housing options makes it difficult for people to leave shelters.
While the overall homeless population has decreased by 32% since 2015, it fluctuates during the year, typically peaking in winter months.
Courtney LaCaria, housing and homelessness research coordinator with the county, said the report helps draw connections between the overlapping issues that lead to housing insecurity. It should be a resource for local governments, nonprofits and advocates to make decisions and seek solutions, particularly during the pandemic, she said.
“We’re already behind so I think it, if anything, (offers) a renewed sense of urgency,” she said.
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