As the number of extremely low income households increases, the number of rental homes that are considered affordable to these households is decreasing.

The 2008 American Community Survey (ACS), an annual survey of approximately 3 million households, provides recent information of the characteristics of Americans and their housing. An analysis of this data completed by the National Low Income Housing Coalition (NLIHC), headquartered in Washington D.C., showed the shortage of housing affordable for households earning 30 percent or less of their area median income drastically increased to 3.1 million homes in 2008 from 2.7 million in 2007.

This longstanding deficit of affordable homes is only getting worse. Data from the ACS showed that the number of all renter households in the United States increased by 2.4 percent between 2007 and 2008, but the number of extremely low income renter households increased be 3.5 percent. While the supply of all rental homes increased by 2.2 percent during this same period, the supply of rental homes affordable for the poorest households decreased by 1.8 percent.

The only income group facing an absolute shortage of affordable rental housing continues to be households with extremely low incomes. According to the report, there were 39 affordable rental housing units available for every 100 extremely low income renter households in 2007, and the number of available units declined to 37 in 2008.

In some instances, homes affordable to these families were occupied by higher income households. The scarcity of affordable housing for these households is the principle cause of homelessness in the United States, the NLIHC said.

With the increase in unemployment and resulting loss of household income from 2008 to 2009, this shortage is expected to be even worse in 2009 and 2010. Despite the excess supply in the overall housing market caused by the foreclosure crisis and recession, the shortage of affordable housing for extremely low income families will persist.

“In the array of subsidies and bailouts that Congress and the Administration have given out in an attempt to repair the economy in the last year, more than $1.1 trillion has gone to the housing sector through foreclosure mitigation programs, tax credits for homebuyers, and cash infusions to Fannie Mae and Freddie Mac,” said Sheila Crowley, NLIHC president. “Not one dollar has been devoted just to addressing the shortage of rental housing for extremely low income families. This is unconscionable neglect. Congress cannot claim that we cannot afford to build more affordable rental housing, when they just this month put another $11.8 billion into subsidizing homebuyers with incomes of up to $250,000.”

As a result of this massive deficit in affordable housing for the poorest households in the United States, low income housing and homeless advocates are calling on Congress to put at least $1 billion in the National Housing Trust Fund before the end of the year. This purpose of this funding would be to support the immediate construction of 10,000 rental homes, creating 15,100 new construction jobs and 3,800 new jobs in ongoing operations.

This group of advocated also believes the new jobs bill currently being developed by Congress should include an additional $15 billion for low income rental housing construction and rehabilitation through the National Housing Trust Fund in 2010, creating an additional 283,500 jobs. Three quarters of homes produced with National Trust Fund dollars must be affordable to extremely low income households, but this fund, established in 2008, has yet to be funded.