Housing Stability

Housing Stability

Stable housing means having a secure place to live without constant worry about losing it and having control over deciding whether to move.

In contrast, housing instability involves challenges like struggling to pay rent, living in overcrowded conditions, frequent moves, or spending a large portion of income on housing. This instability can lead to stress, anxiety, and a sense of disconnection, making it difficult to establish routines or build connections within the community.

People without stable housing are more likely to experience homelessness, unemployment, violence, food insecurity, substance use, and physical and mental health challenges. Low-income individuals might rent unsafe housing with risks like mold, rodents, and lead paint. Living in unsafe areas increases the risk of harm from community violence, bullying, crime, or abuse.

Moving three or more times in a year, known as “multiple moves,” can harm children’s health. Children who move frequently are more likely to develop chronic conditions, have poor physical health, and may have less consistent health insurance coverage.[1]

Children who have housing instability often struggle more in school compared to those in stable homes. Those living in poor conditions are also more likely to face physical and emotional challenges.[2] Further, housing insecurity in early childhood has been linked to increased interactions with child welfare and criminal justice systems later in life, as well as higher rates of depression and psychological distress.[3]

Housing Costs

A household is cost-burdened if it spends more than 30% of its income on housing, and severely cost-burdened if it spends over 50%.[4] This leaves little money for essentials like nutritious food, clothing, utilities, and health care. Black and Hispanic households are nearly twice as likely as white households to face this burden.

When households spend too much on rent, they face higher eviction rates, financial instability, and a greater reliance on social safety net programs. As more families depend on renting for long-term housing, the rising cost of rent has become a major burden. Over the past decade, increasing demand for rentals has driven vacancy rates to historic lows, pushing rent prices higher than many incomes can afford.[5]

Since the 2007-09 recession, renters have found it harder to transition to owning a home. Many struggle to save for a down payment or meet credit requirements. Even with assistance, some renters can’t afford monthly payments and maintenance on homes.

Homeownership

Homeownership is often seen as the key to the American dream and the way to build wealth and financial stability across generations. Paying off a mortgage and gaining home equity—the difference between a home’s value and the mortgage owed— is the most significant asset for many homeowners.[6]

Historical and ongoing segregation and lending discrimination have diminished the financial benefits of homeownership for people of color. Homeownership is less attainable for Black Americans, with a homeownership rate of 46% compared to 76% for white families.[7]

Homes in predominantly Black neighborhoods are valued at $48,000 less on average than those in white neighborhoods. Since wealth impacts education, health, employment, and overall quality of life, strategies to increase home ownership and home value in Black communities are essential.

[1] U.S Department of Health and Human Services

[2] Archway Communities

[3] Rocky Mountain Health Plans

[4] U.S Department of Health and Human Services

[5] The Pew Charitable Trusts

[6] Urban Institute

[7] The Brookings Institution