Worst case housing needs

Earlier this week, HUD released its latest Worst Case Housing Needs report. Using data from 2007, the information in this report predates the Great Recession.

The report provides data on very low-income renters who are cost-burdened and/or inadequately housed and includes an analysis of worst case housing needs by demographic group, availability of housing stock, and neighborhoods. The findings from this report are a reminder of the scope of the problem (very large) and the need for more units and rental assistance.

HUD defines worst case housing needs (WCN) as unassisted very low-income renters who either (1) pay more than one-half of their monthly income for rent; or (2) live in severely inadequate conditions, or both. HUD defines "very low-income" as below 50 percent of the local area median income (AMI) and "extremely low-income" as below 30 percent of AMI.

Here are some of the key findings from the latest report:

• The primary cause of worst case needs is severe rent burden. The vast majority of the households with worst case housing needs had severe rent burden as their sole problem. A much smaller portion of the households lived in severely inadequate housing.
• Not surprisingly, worst case needs are more prevalent among extremely low-income households. A majority of WCN households (4.33 million) had extremely low incomes, and a smaller but substantial portion (1.58 million) were in the 30 to 50 percent of area median income group.
• Worst case needs are found across different types of families. Families with children make up the largest group, followed by elderly households, and non-elderly disabled households.
• During 2007, almost one-half (46%) of households with children that experienced worst case needs were working full-time (with earned incomes at least at the minimum wage for 40 hours per week).
• More than 40% of worst case needs renters in cities lived in higher poverty neighborhoods (indicating both a lack of housing options in cities; and a lack of affordable housing even in high poverty areas).

For more information and to view previous Worst Case Needs Reports, visit HUD's Affordable Housing/Worst Case Needs Report to Congress web page.