How Bad Is Housing Affordability?
●Rental Market Shortage The National Low Income Housing Coalition (NLIHC) reports a staggering gap: only 35 affordable and available rental homes
per 100 extremely low-income households, leaving a deficit of 7.1 million units nationwide. Three-quarters of those renters spend more than 50% of their income on rent-making them severely cost-burdened.
●Wage Deficits The 2024 Housing Wage shows ideal affordability at $32.11/hour for a two-bedroom and $26.74/hour for a one-bedroom—yet no worker earning minimum wage can afford even a modest two-bedroom, even with multiple full-time jobs.
●Cost Burden Across Renters and Owners In 2023, 50% of renters (22.6 million households) were cost-burdened (spending over 30% of income on housing), and 27% (12.1 million) were severely cost-burdened (over 50%) . Among homeowners, 24% were also cost-burdened—about 20 million households—with these numbers rising sharply in recent years.
●Housing Prices & Mortgage Costs Rising Fast From 2019 to 2024, home prices jumped 60%; by mid‑2025, the median existing home price reached ~$441,700. The price-to-income ratio stands at 5.0—much higher than the “affordable” threshold of 3.0.
●Mortgage Payments Consume Too Much Income In early 2025, a typical household needed 36% of income to afford a new home’s mortgage; for low-income families (50% of median income), that jumped to 70–72%. Nationwide, many would have to work 10 days per month just to cover mortgage costs; in high‑cost states like Hawaii or California, that’s up to 15–17 days.
The Impact on Families and Communities
●Homeownership Slips Away Homeownership rates fell to 65.1% in early 2025—the lowest in almost a decade. The biggest decline occurred among households led by
individuals under 35.
●Soaring Homelessness Homelessness has surged. A 12% rise from 2022 to 2023 in homelessness was noted, with families with children among the most affected groups.
●Fewer Affordable Rentals From 2013 to 2023, the number of apartments renting for under $1,000/month dropped by over 30%—while units priced above $2,000 nearly tripled.
●Household Strain & Racial Disparities Approximately 65% of working-age renters lack enough leftover income after rent to meet everyday needs like food or healthcare. Racial disparities persist: 57% of Black renters, 53% of Hispanic renters, and 50% of multiracial renters are cost-burdened, compared to 46% of white renters.
●Family Hardships and Child Welfare Families under housing cost burden face increased stress, leading to worse outcomes for children. Long-term cost-burden exposure correlates to lower reading/math scores and higher behavioral problems.
What’s Driving the Crisis?
●Severe Supply Shortages The U.S. faces a shortfall of at least 4.5–4.7 million homes, and though construction peaked recently (e.g., 608,000 multifamily units in 2024), it’s barely keeping up with demand.
●Higher Construction Costs & Permitting Delays Disruptions such as tariffs, labor shortages, high material costs, and red tape are squeezing developers and delaying projects.
●Federal Aid Uncertainty Budget cuts are looming—federal housing assistance is under threat, even as existing programs like Housing Choice Vouchers, the Housing Trust Fund, and LIHEAP face funding slashes.
●Private Sector Responses Fall Short Tech giants like Meta and Google have pledged billions to build affordable homes, but slow rollouts and regulatory
barriers limit impact. Apple, Microsoft, and Amazon have made more progress but still only scratch the surface.
By the numbers, the housing affordability crisis is pervasive and growing. Millions of families, especially those with low incomes, renters, and households of color, are being squeezed out. It’s not just a housing problem; it’s a social and public health emergency that demands wide-ranging, urgent policy solutions.
Why is there a shortage of contractors that will build affordable housing?
1.
Profit Margins Are Low
Affordable housing projects typically yield lower returns than market-rate or luxury
developments. For-profit developers are less likely to take on affordable housing because:
●Land, labor, and material costs are nearly the same for all housing types.
●But rents or sale prices for affordable housing are capped or limited by government programs.
●The financial reward vs. risk is much lower.
2.
High Construction Costs
The cost of building a new unit of housing—especially in urban areas—is extremely high due to:
●Rising materials prices (lumber, steel, concrete, etc.)
●Labor shortages and wage increases
●Expensive land in desirable areas
●Increased insurance and liability costs
These costs make it unfeasible to price the units affordably without government subsidies.
3.
Zoning and Regulatory Barriers
Local regulations can make affordable housing difficult or impossible to build:
●Zoning laws restrict multi-family units or higher-density buildings in many cities.
●Permit processes can be slow and expensive.
●Minimum parking requirements, design mandates, or unit size rules can drive up costs.
●Community opposition (NIMBYism) can delay or block projects altogether.
4.
Lack of Public Subsidies or Incentives
To make affordable housing viable, most developers rely on:
●Low Income Housing Tax Credits (LIHTC)
●Housing Trust Funds
●State and local grants or bonds
●Zoning bonuses or density incentives
But these programs are often oversubscribed, underfunded, or extremely competitive. Many projects don’t pencil out without them.
5.
Financing Is Harder
Affordable housing projects face more hurdles when securing funding:
●Lenders view them as higher risk due to lower returns.
●Projects often involve complex financing stacks from multiple public and private sources.
●The process can take years, increasing costs and uncertainty.
6.
Market Forces Push Developers Toward Luxury
Developers follow the money. In high-demand areas:
●There’s strong demand for high-end units, especially from investors and wealthy buyers.
●Institutional investors and REITs prefer developments with high income potential.
●Even in cities with a housing shortage, it’s more lucrative to build for the top 10–20% of
earners.
7.
Risk of Local Opposition (NIMBYism)
Community resistance to affordable housing can delay or kill projects:
●Concerns about property values, crime, or “changing neighborhood character”
●Politicians may fear backlash from voters
●This adds cost, legal hurdles, and time to approvals—making developers less willing to try.
Summary: The State for Families Today
●Most renters—especially low-income families—lack access to affordable housing.
●Homeownership has grown less attainable: mortgages eat up too much income, while housing prices and payments continue to climb.
●Supply remains critically low, and rising construction costs plus stalled federal support make improvements harder.
●Families suffer deeply—in financial, physical, and emotional terms—with children bearing long-term developmental and behavioral consequences.
To work with the latest technology in EPS construction. EPS construction refers to building methods that use Expanded Polystyrene (EPS) as a core material—often in insulated panels, blocks, or forms—to create energy-efficient, lightweight, and durable structures. EPS is a type of rigid foam plastic commonly used for insulation and structural purposes.
Allows a home or structure to be built in a fraction of the time using 50% less labor force. For the end user, they can take advantage of energy savings of up to 75% . These structures are mold resistant and insect resistant and last for an estimated 425 years. These structures can sustain wind force up to 150 miles an hour and have a four hour burn ratio compared to the traditional to our burn ratio.
For their first project, CTWSH is focusing in Walker County, Alabama, which has very minimal restrictions and government interference. It is also located 45 minutes to an hour's commute time from two major cities, allowing for higher paying jobs with housing costs averaging 40% of their wages instead of 70%
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