Rent Burden, Housing Subsidies and the Well-being of Children and Youth – NCCP (2024)

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This is an excerpt from the full report.

What is rent burden?

Rent burden is defined as spending more than 30 percent of household income on rent. In 2009, more than half of renter-occupied households with children (54 percent) experienced rent burden. Between 2002 and 2009, the proportion of households with children affected by rent burden increased significantly. Although rates of rent burden had remained relatively stable for several years between 2002 and 2006, they began to increase from 2006 to 2009. With the majority of renter-occupied households with children spending a large proportion of their incomes on housing, this issue has important implications for children’s well-being.

For low-income families (family income under 200 percent of federal poverty threshold), who are more likely than more affluent families to rent than own housing and have fewer resources available to devote to rent, the experience of rent burden is particularly acute. Nearly 80 percent of lowincome households with children spend more than 30 percent of their income on rent. Other types of housing problems that low-income families face include crowded housing or inadequate housing due to physical conditions of buildings such as lack of complete plumbing for exclusive use, unvented heaters as the primary heating equipment, water leakage, open cracks or holes, or rodents. However, compared with rent burden, a relatively small proportion of households with children experience these issues. That is, about five to six percent of all households with children and about 11 to 14 percent of very low-income families (families with income less than 50 percent of the median income for the geographical area in which they lived) experience at least one of these problems. Thus, the current housing problem that affects the majority of households with children is rent burden.

Does rent burden vary by geography or family characteristics?

In the United States, 57 percent of children in renteroccupied households –14.1 million – are affected by rent burden (see Table 1). Across the four main U.S. regions (Northeast, Midwest, South and West), rates of rent burden among children in renter-occupied households do not vary greatly. However, children in urban areas experience higher rates (59 percent) of rent burden compared to those in rural areas (49 percent). Research by the U.S. Department of Housing and Urban Development suggests that variation in rates of rent burden by region and urban/rural status may be influenced by geographic variation in the supply of affordable housing.

Although excessive rent burden affects all types of households, the incidence of rent burden varies by important socio-demographic characteristics. Across racial/ethnic groups, Black and Hispanic children experience the highest rates of rent burden (65 percent and 62 percent, respectively). Asians and American Indian children experience the lowest rates of rent burden (46 percent for both groups). Children of immigrant parents are disproportionately affected by rent burden compared to children of native-born parents.

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As an expert in housing and socio-economic trends, I can delve into the intricacies of the article by Yumiko Aratani, Michelle Chau, Vanessa R. Wight, and Sophia Addy, published in November 2011. This comprehensive report focuses on the concept of rent burden and its impact on the well-being of children and families. My depth of knowledge in this area allows me to shed light on key concepts and provide a nuanced understanding.

The article defines "rent burden" as the phenomenon where households spend more than 30 percent of their income on rent. This financial strain is a critical concern, particularly for families with children. Between 2002 and 2009, the proportion of renter-occupied households with children experiencing rent burden increased significantly. This is a notable trend that underscores the challenges faced by a substantial portion of the population.

For low-income families, the issue of rent burden becomes even more acute. The report reveals that nearly 80 percent of low-income households with children spend more than 30 percent of their income on rent. This group is more likely to rent than own housing, and their limited financial resources make them vulnerable to housing-related challenges. The article also touches upon other housing problems faced by low-income families, such as crowded or inadequate housing conditions.

Geographical and demographic factors play a crucial role in understanding the dynamics of rent burden. In the United States, 57 percent of children in renter-occupied households, amounting to 14.1 million children, are affected by rent burden. While rates of rent burden don't vary significantly across the four main U.S. regions, urban areas tend to experience higher rates than rural areas. The report suggests that the supply of affordable housing contributes to this variation.

Additionally, the incidence of rent burden differs across racial and ethnic groups. Black and Hispanic children have the highest rates of rent burden (65 percent and 62 percent, respectively), while Asian and American Indian children experience lower rates (46 percent for both groups). This disparity underscores the intersectionality of socio-economic factors in housing challenges.

In conclusion, this report provides a comprehensive analysis of rent burden, its implications for children's well-being, and the varying experiences across different demographic groups and geographic locations. It serves as a valuable resource for policymakers, researchers, and organizations aiming to address housing-related challenges and improve the overall quality of life for vulnerable populations.

Rent Burden, Housing Subsidies and the Well-being of Children and Youth – NCCP (2024)
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