New HUD Studies Highlight Decrease in Most Affordable Units

Underscoring the rising need for preservation efforts across the country, two new studies commissioned by HUD indicate that the nation’s supply of rental housing affordable to people with the lowest incomes fell by approximately 2.1 million units between 2007 and 2009. The study focused on rental affordability, Rental Market Dynamics: 2007-2009, reveals that non-market (either no cash rent or a subsidized rent) or extremely low rent (affordable to households with incomes at or below 30% of area median income) unit totals decreased by 17.9% and 25.2%, respectively. Out of eight different rental unit categories indentified in the report, the only other loss, 5.5%, of units was for those with extremely high rent (affordable to households with incomes above 120% of area median income). The report points to conversion of units to higher rent categories as the causes of the net losses in non-market and extremely low rent housing.

The other report, Components of Inventory Change: 2007-2009, examines changes to all housing stock, rental or ownership, and provides both forward- and backward-looking analysis. The findings include totals by certain unit characteristics, such as occupant household income level, and cause of stock change, such as new construction or conversion to nonresidential use.

Click here to download either report. Both use American Housing Survey data.

— Posted on 8/03/2011