Report: 78,000 low-income Sacramentans can’t find an affordable home to rent

Very low-income renters in the Sacramento metro area face a shortage of more than 78,000 affordable and available homes, according to a new report from the National Low Income Housing Coalition.

Published Thursday, the report found that thousands of low-income residents spend well over the recommended 30% of their income on rent and utilities because of a dearth of affordable homes and apartments in Sacramento.

Only 41 affordable and available rentals exist in the Sacramento region for every 100 very low-income renter households, according to the coalition’s analysis.

In Sacramento County, very low income is defined by the federal government as a person who earns $31,750 — roughly minimum wage — or a household of four earning $45,300.

For people in extreme poverty, the shortage of available and affordable homes is even more severe. Only about one in five extremely low-income renter households would be able to find an affordable and available unit, the report found.

About four in five extremely lowincome renters in the Sacramento metro area spend more than half of all their earnings paying rent, according to the report. That puts added strain on their wallets and budgets, forcing low-income renters to cut back on other basic necessities such as food and healthcare.

Out of the 50 largest metropolitan areas in the country, the Sacramento area is among the top ten metros with the worst shortage of affordable rentals for extremely low-income households, the report found, ranking ninth overall.

“This report highlights a systemic shortage of affordable housing for extremely low-income renters that impacts nearly every community,” the coalition report stated.

Across the United States, extremely low-income renters face a shortage

of roughly 7 million affordable and available rental homes, according to the report. Only 36 affordable and available homes exist for every 100 extremely low-income renter households.

No state has an adequate supply of affordable and available homes for extremely low-income renters — a group that accounts for 25% of all renter households in the United States.

The shortage is exacerbated by the fact that low-income renters find themselves competing against higher-income renters in the private market, which cannot sufficiently compensate for the deficit.

That’s because the rents affordable to extremely low-income renters will not cover the development and operating costs of new housing, and “often do not provide sufficient incentives for landlords to maintain older housing,” the report stated.

Instead, subsidized housing vouchers and public housing projects “can correct such failures of the market and tip the scales toward housing justice,” the report stated.

“The shortage can only be addressed through sufficiently long-term federal

investments in affordable housing programs designed to serve households with the greatest needs,” the report stated.

Nationwide, nearly all extremely low-income renters work low-wage jobs or are unable to work, according to the report. About 37% are in the labor force, 27% are seniors, 19% include a householder with a disability, and another 7% are students or are single adults who work as a caregiver to a child or person with a disability.

The shortage of affordable homes for poor households disproportionately impacts people of color, who are more likely to be renters and have extremely low incomes.

The report found only 6% of white households are extremely low-income renters. In comparison, 20% of Black households, 18% of American Indian or Alaska Native households, 15% of Latino households, and 10% of Asian households are extremely low-income renters.

As of last month, 5.6 million renter households were behind on rent, according to the report, accounting for 14% of renter households.