In the conversation article, Alex Schwartz and Kirk McClure outline the potential benefits of universal rental assistance, arguing that high housing costs are not always associated with housing supply.
According to the author, “Even a large injection of new homes is likely to result in rents for many households not reaching them, so they will not reduce housing costs sufficient to resolve the crisis.”
For the author, the most effective solution is to expand housing subsidies. “Low-income renters can’t afford a home in particular. 81% of tenants earned less than $30,000, spending more than 30% of their income on housing, and 60% spent more than 50%.”
The authors say that rather than the overall housing shortage, their research reveals a lack of affordable units and difficulty in accessing support for low-income households. “Only about 25% of Eligblge households receive federal support for rental.”
“By expanding rental assistance to all eligible low-income households, the government has made great strides in solving the rental affordability crisis.” Giving renters cash assistance eliminates the challenges posed by the Section 8 voucher program, making it easier for eligible households to buy homes, save money for homeless services, and facilitate funding for new, affordable housing.
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