If you live in America, there's a good chance that you already know about the affordable housing crisis that's happening. In cities, both metropolitan and rural, across the nation, people in lower income brackets are having a difficult time finding homes that they can afford to live in. Did you know that in order to afford a modest 2-bedroom apartment in the U.S. today, you need to earn about $20 per hour? That's $12.75 higher than the federal minimum wage! However, you may not quite understand what caused this crisis. To learn more about the causes of the affordable housing shortage, read on.
Fallout from the Foreclosure Crisis
In 2008, the housing bubble burst and the economy tanked — all thanks to the subprime mortgages given to home buyers who couldn't actually afford to buy. Those homeowners who were given subprime mortgages ultimately had to abandon their homes and move into rentals, taking up more of the available affordable housing options.
Influx of Millennials into the Housing Market
Over the last decade, millennials have been graduating from school and emerging in the world's workplaces. That means that they have had to find places to live, and most have chosen to occupy affordable rental housing. Housing studies show that only 34.1 percent of Americans under 35 have bought a home, mostly because they cannot afford to. The millennial population is now occupying more of the affordable housing market than any generation before it.
Rise in Urban and Suburban Poverty
The number of impoverished Americans continues to grow, surveys have shown, adding to the shortage in affordable housing. The number of people living in high-poverty areas almost doubled between 2000 and 2013, from 7.2 million to 13.8 million. And poverty is not limited to urban centers. In fact, more than 12.2 percent of all Americans — including those in the suburbs — live in economically distressed neighborhoods, increasing the demand for affordable housing more than ever before.
If you want to help ease the affordable housing crisis, consider investing with Via Home. We offer you the ability to invest in affordable crowdfunded real estate — helping provide homes to those who need them, and a secure investment opportunity for you.