In the Media

America was staring down a housing crisis even before the coronavirus arrived in the United States. Of America’s nearly 43 million renters, about 20.8 million — almost half — were “cost-burdened,” meaning more than 30 percent of their income went to housing costs, according to the Joint Center for Housing Studies.

Overall measures of rental housing affordability and security improved only slightly during the pre-pandemic economic expansion. In 2018, even as the national unemployment rate was slipping to generational lows, nearly 21 million renters were classed as cost burdened, spending more than 30% of income on rent and utilities, according to the Joint Center for Housing Studies.

“Systemic racism leads to lower rates of education and lower incomes among blacks, which in turn lead to lower credit scores and a lack of savings,” says Chris Herbert, managing director of the Joint Center for Housing Studies at Harvard University. “That accounts for about three-quarters of the homeownership gap, but one-fourth couldn’t be directly explained by lower incomes and lower rates of education.”

“Many households have continued to work through the pandemic and maintained their purchasing power. It's really those households that are doing well that are fueling this demand,” said Chris Herbert, managing director of the Harvard Joint Center for Housing Studies.

“The eviction moratoriums aren’t forgiving the rent — they’re just saying that the renter can’t be evicted,” said Whitney Airgood-Obrycki, a researcher at Harvard’s Joint Center for Housing Studies. “So for a lot of cash-strapped renters in particular, it’s going to be even harder a couple of months down the line to pay several months of rent.”

Nationwide, 55% of Black renters spent more than 30% of their income on housing in 2016, the typical threshold at which experts say costs begin to crowd out other necessities. That compares with 54% of Latino households and 43% of white households, according to an analysis of census data from Harvard University’s Joint Center for Housing Studies.

Widespread unemployment and economic uncertainty are anticipated to dramatically slow the pace of remodeling projects, according to a report from the Joint Center for Housing Studies of Harvard University. The report says spending on remodeling will sharply decline this year and into 2021.

Some federal relief is about to expire. Local assistance is spotty. Congress may not act quickly. Here’s how to get help, or help yourself.

Renters already faced a dire situation before the pandemic hit, said Alexander Hermann, a researcher at the Harvard Joint Center for Housing Studies. Then came the pandemic, which hit renters particularly hard financially.

Before the pandemic, of America’s nearly 43 million renters, about 20.8 million — almost half — were “cost-burdened,” meaning more than 30 percent of their income went to housing costs, according to the Joint Center for Housing Studies of Harvard University.