Housing affordability has reached a breaking point for millions of Americans, especially renters. In 2023, more than 22 million renter households spent over 30% of their income on rent and utilities, a level considered financially burdensome.
That means half of all renters had less money left for basics like food, healthcare, transportation, and childcare, according to a new study from the Joint Center for Housing Studies at Harvard University.
After paying rent, the typical renter had about $2,850 per month left for everything else. For renters struggling with high housing costs, that cushion shrank dramatically to just over $1,000. For the lowest-income renters, the situation was far worse. Households earning under $30,000 a year had only a few hundred dollars left each month after housing costs, a sharp drop from just a few years earlier.
These tight budgets force painful tradeoffs. Renters with severe housing cost burdens spend much less on essentials than similar households without those burdens. Food and healthcare spending drop sharply, even as prices for everyday goods have climbed steadily in recent years.
Programs Act as Safety Nets
Because housing assistance is limited and not guaranteed, many families rely on other federal programs to stay afloat. SNAP helps households afford groceries, while Medicaid provides health coverage for low-income individuals, children, older adults, and people with disabilities. Together, these programs act as a safety net when rent takes up too much of a family’s income.
A large share of renters depend on this help. More than one-third live in households where someone receives Medicaid, and over one in five get SNAP benefits. These numbers are even higher for renters facing high housing costs. Homeowners struggling with housing expenses also rely on these programs, though at lower rates.
The support is especially important for the most vulnerable. Extremely low-income renters, families with children, and older adults are far more likely to face housing cost burdens and are far more likely to rely on SNAP or Medicaid to meet basic needs.
However, proposed and enacted cuts to these programs come at a time when housing costs and everyday expenses remain elevated. Reductions in SNAP and Medicaid coverage would leave millions with less food, less access to healthcare, and fewer resources to cope.
As housing affordability worsens, federal assistance programs are helping prevent an even deeper crisis. Weakening them risks turning financial strain into long-term hardship for the households that need help most.
