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New Report: New Jersey’s Affordable Home Supply is Insufficient; Extremely Low-Income Renters Face a Staggering Shortage Nationwide 3/14/2024 A new report by the Housing and Community Development Network of New Jersey (the Network) and the National Low Income Housing Coalition (NLIHC) reveals that there are only 30 affordable rental homes available for every 100 extremely low-income households in the Garden State. The report, The Gap: A Shortage of Affordable Homes, finds that 74 percent of extremely low-income renters in New Jersey are severely housing cost-burdened, spending more than 50 percent of their income on housing, with little left over for food, healthcare, and other basic necessities. “Ensuring that all NJ residents can exercise their human right to housing requires bold investments and programmatic solutions to address our vast shortage of available and affordable homes,” said Staci Berger, president and chief executive officer of the Network and NLIHC board member. “Passage of the fair housing reform legislation as well as fully investing in the NJ Affordable Housing Trust Fund are just a few ways we can create more healthy and affordable homes our residents need. Our elected officials in NJ and Washington can help to HouseNJ by supporting policies that promote housing security, stability, and affordability for all residents for generations to come.” NJ housing advocates are urging swift passage of the bill (S50/A4) that would update and streamline how municipal affordable housing obligations are determined, implemented, monitored, and enforced. S50/A4 also applies the same methodology used currently in court-ordered affordable housing settlements and extends affordability controls for rental and for-sale homes. Advocates also urge preserving and expanding the Affordable Housing Trust Fund (AHTF) to support the production of affordable homes, in light of the more than 200,000-affordable home deficit that NJ faces, according to NLIHC. The AHTF is the major, dedicated source of funding for affordable home creation in New Jersey and advocates are calling on the legislature to bolster the AHTF and other housing programs by exploring increased revenue potentially from other sources such as a “mansion tax,” creating fee incentives for luxury for-profit developments to create affordable housing, and other revenue generators which could be used to support first-time/first-generation homeownership opportunities. Released annually, The Gap investigates the severe shortage of affordable rental homes available to extremely low-income families and individuals nationwide, in every state, and in every metro area. This year’s report found that there is a national shortage of 7.3 million affordable and available rental homes for extremely low-income renter households – those with incomes at or below the poverty level or 30% of their area median income, whichever is greater – resulting in just 34 affordable and available rental homes for every 100 extremely low-income renter households nationwide. While rents have stabilized since the pandemic in most markets – and even declined to a small degree in some markets – the supply of affordable rental housing for extremely low-income households remains deeply inadequate in New Jersey. “Even with a strong economy and stabilizing rents, homelessness has increased to its highest level ever recorded, and millions of the lowest-income and most marginalized households are at risk,” said NLIHC president and chief executive officer Diane Yentel. “We know what works to end housing insecurity and homelessness – what we lack is the political will to invest in these solutions at the scale needed. More than ever, Congress should act quickly to enact bold legislation to ensure rental assistance is universally available, build and preserve homes affordable to people with the lowest incomes, create tools to prevent eviction and homelessness, and strengthen renter protections to keep renters stably housed.” Learn more about The Gap by visiting https://nlihc.org/gap. About the Housing and Community Development Network of NJ For more information: Nina Rainiero |
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