In recognition of President Lyndon Johnson’s signing of the Fair Housing Act of 1968, April is Fair Housing Month. The 1968 Act prohibited discrimination concerning the sale, rental and financing of housing based on race, religion, national origin or sex.
Richard Rothstein’s book “The Color of Law: A Forgotten History of How Our Government Segregated America” details government-sanctioned housing segregation in California, New York, Florida, and points in between. Reading his book reminded me that racial and ethnic housing segregation was not limited to the south (Virginia), where I grew up, but was also pervasive in the north, where I was born (New York), and in California where I attended graduate school.
As I think about fair housing, I’ve come to think beyond housing segregation or housing discrimination. As I noticed areas with more single-family homes had lower COIVD-19 rates, and as public concern about the vulnerability of the unhoused to COVID-19, my view of fair housing expanded to include affordability.
In a story about homelessness in Malibu, CA, a City Council Member’s said,
”I am able to live here because I’ve worked hard all my life and I can afford to. If I couldn’t afford a house in Malibu, I wouldn’t have a house in Malibu. I’d live in anot her city that’s less expensive to live in. And I think the unhoused population is in the same boat.”
This comment suggests the unhoused have not worked hard. It ignores the effect of gentrification and the pandemic on the housing market, which has resulted in higher rents and home prices, even in rural communities.
Inflation data show that shelter prices are a key contributor to increases in inflation.
The 30% Rule
The general rule for budgeting is that housing should be 30% of your monthly expenditures. Table 1 shows that Black, Asian, Hispanic, and Other head-of-household women exceed the 30% rent-to-income rule. However, some argue that this is an antiquated rule. The prudent percent of income spent on housing ultimately depends on family structure, employment stability, and other financial obligations.
Table 1. 2020 Rent-to-Income Ratios
Source: U.S. Census Bureau; American Community Survey (ACS), 2020 Public Use Microdata Sample (PUMS).
Heavy Rent Burden
The data in Table 1 is for 2020. According to rent.com, the average price for a one-bedroom apartment in April 2022 was $1,697, up 22.2% from April 2021, and a two-bedroom apartment rented for $2,050, up 22.8% from April 2021.
Although current incomes are likely higher than the medians reported in Table 1, the buying power is less due to inflation. Therefore, the rent burden may be heavier than rent-to-income ratios suggest.
So, when you think about fair housing, please consider expanding your lens to include affordability.
