Key Takeaways:
- Rents in the U.S. are painfully high, with 54% of renters spending over 30% of their income on housing.
- The housing crisis isn’t about a shortage of homes but a lack of affordable housing for low-income families.
- Rental subsidies are a proven solution, but only 25% of eligible households receive them.
- Expanding subsidies could drastically reduce housing costs and financial burdens for millions of renters.
Rents Are Skyrocketing, and It’s a National Crisis
Imagine spending more than half your paycheck just to keep a roof over your head. For millions of Americans, this is their daily reality. Rents in the U.S. have skyrocketed, leaving families struggling to afford even the most basic housing. This isn’t just a problem for big cities; it’s a nationwide crisis.
According to the U.S. Department of Housing and Urban Development, over 54% of renters spent more than 30% of their income on housing in 2023. That’s up from 43% in 1999. For those earning less than $30,000, the situation is even worse: 81% of these renters spend more than 30% of their income on housing, and 60% spend over half.
Why Building More Housing Isn’t the Solution
Politicians and experts often say the solution to high rents is to build more housing. But here’s the surprise: the U.S. doesn’t actually have a shortage of housing. The real problem is that there’s not enough affordable housing for low-income families. Even if we built millions of new homes, most wouldn’t be affordable for those who need them most.
Studies show that even if rents dropped by 25%, nearly one-third of renters would still spend too much on housing. And the people who need help the most—those earning less than $30,000—would still struggle. So, building more housing isn’t the answer. Instead, we need to focus on making housing more affordable for those who can’t keep up.
Rental Subsidies: A Proven Solution
So, what does work? Rental subsidies. These programs help low-income renters pay their bills by capping housing costs at 30% of their income. For example, Housing Choice Vouchers, also known as Section 8, let renters use government funds to pay part of their rent. But here’s the issue: only 25% of eligible households get this help, and the program isn’t an entitlement like Social Security or food stamps. Congress decides how much to fund it each year, and there’s never enough money to meet demand.
The good news is that expanding these subsidies could fix the housing crisis. Imagine if every low-income family could afford their rent without sacrificing food, healthcare, or savings. That’s what rental subsidies can do.
Why Rental Subsidies Fall Short
While rental subsidies are effective, they’re not perfect. One big problem is that many landlords won’t accept vouchers. In some cities, landlords can discriminate against voucher holders, making it hard for renters to find a place to live. New programs in cities like Philadelphia are experimenting with giving renters cash instead of vouchers. This could make it easier for landlords to accept government-backed tenants. But it’s still a tricky issue.
Homeowners Get Subsidies—Why Not Renters?
Here’s something that might surprise you: the government already spends billions of dollars on housing subsidies. But most of this money goes to homeowners, not renters. For example, homeowners can deduct their mortgage interest from their taxes, saving them thousands of dollars a year. In 2024, over 70% of these tax breaks went to households earning more than $200,000. Meanwhile, low-income renters get almost nothing.
Expanding rental subsidies could level the playing field. It would also save the government money in the long run by reducing homelessness and the need for emergency housing programs.
The Path Forward
Expanding rental subsidies to all eligible low-income households would cost about $118 billion a year. That’s a lot of money, but it’s worth it. For comparison, the government spent $187 billion annually on homeowner tax breaks from 1998 to 2017. If we redirected some of that money to renters, we could solve the housing crisis for millions of families.
Of course, this would require a big change in how the government budgets money. Right now, some politicians want to cut funding for rental assistance instead of expanding it. For example, the Trump administration proposed cutting rental assistance by 44%. But if we want to fix the housing crisis, we need to spend money where it matters most: on helping low-income renters.
Final Thoughts
The U.S. housing crisis is complex, but the solution is clear: expand rental subsidies. By making these programs available to all eligible households, we can ensure that no one has to spend too much of their income on rent. It’s time to give renters the same kind of support we’ve given homeowners for decades. Only then can we make housing affordable for everyone.