Going, Going, Gone: DC’s Vanishing Affordable Housing

Rapidly rising housing costs led to a substantial loss of low-cost rental housing in the District over the last decade, yet there was little growth in wages for many residents, which means that rent is increasingly eating away at household budgets. As the District’s high cost of living continues to outpace incomes, more and more residents struggle to pay for housing while also meeting other necessities like food, clothing, health care, and transportation. The loss of affordable housing threatens the physical and mental health of families, makes it harder for adults to find and keep a job, creates instability for children that makes it hard to focus at school, and leaves thousands at risk of homelessness at any given moment.

This analysis looks at the costs of rent and utilities paid by District residents over the last decade, and how these trends have affected residents’ ability to afford and live in DC, using data from the Census Bureau’s American Community Survey. The findings suggest that policymakers need a comprehensive strategy to preserve the low-cost housing that now exists and to create more affordable housing options in the city.

  • Rents have grown sharply but incomes have not for many DC households. For example, rents for residents with incomes of about $22,000 a year increased $250 a month over the past decade, adjusting for inflation, while incomes remained flat. For these residents, average rents now equal half of average income.
  • The District now has half as many low-cost units as in 2002. The number of apartments renting for less than $800 a month fell from almost 60,000 in 2002 to 33,000 in 2013. (Unless otherwise noted, all rental and income figures are adjusted for inflation to equal 2013 dollars). These findings suggest that there is very little low-cost housing in the private market and that subsidized housing is now virtually the only source of inexpensive apartments. Meanwhile, the number of apartments with higher rents — above $1,400 — has skyrocketed.
  • Very low-income households have felt the greatest pinch, with most spending more than half of their income on rent. Among DC’s lowest income residents, 64 percent devote half or more of their income to housing. And one-third of more moderate-income families, with incomes up to $54,000, have housing cost burdens this severe.

These trends won’t reverse on their own. To help, DC must take significant action, including coming up with a comprehensive affordable housing strategy that promotes production of new affordable units, preservation of existing units, and funding for housing vouchers for low-income renters.

To read the full report, click here.

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