Right now, nearly one million Virginians are struggling to pay for food and other necessities because their monthly rent or mortgage payments are more than their income can sustain. Those struggling with these costs include 22% of citizens in Southwest Virginia and 26% in Southside Virginia/New River Valley. According to the 2021 Joint Legislative Audit and Review Commission study on Affordable Housing, most Virginians who struggle with high housing costs are those professions most vital to our communities. They include nurses, firefighters, paramedics, teaching assistants, home health aides, waiters, bus drivers and others. If we want to continue to grow the economy in Virginia, we need to ensure that all residents have the resources they need for a safe and affordable place to call home.
When we say that we need more affordable housing, what do we mean? In today’s politically charged environment, everyone must understand what we mean when we talk about affordable housing and the housing crisis. First, affordable housing comes in many different forms, such as a single-family home, a townhome, an apartment, or a mobile home. While there is no single definition of affordable housing, housing is often considered “affordable” if the resident(s) spends no more than 30% of their income on housing costs. Second, the housing affordability crisis we are facing right now is not a recent development that can be blamed on a particular person or administration. This problem started decades ago and was made worse by the Great Recession and the COVID-19 pandemic. Financial institutions were unable to lend money for the construction of new housing types. Those of us in the housing space have warned, for the past decade, that a crisis was coming. Simply put, our population was growing and we weren’t creating nearly enough homes for everyone. Third, everyone is impacted by the housing crisis. While Black Virginians, as well as other Virginians of color, are disproportionately impacted at a higher rate than their proportion of the population, there is no single group that experiences this shortage alone. Across the commonwealth, 62% of white households, 26% of Black households, and 6% of Asian households are housing cost-burdened. Finally, affordable housing is an asset to the community because we all benefit when our neighbors are stably housed.
Right now, Southwest Virginia and Southside/New River Valley need over 13,000 new affordable housing units to alleviate the high price of housing in these areas. This is simple supply and demand economics — more units will reduce the pressure on costs since there will be more options for homebuyers and renters. However, this is both an expensive and time-consuming proposition at a time when families need assistance right now.
One sensible and realistic solution is to provide rental assistance to families with school-age children who are most impacted by the housing affordability crisis. Parental income is one of the strongest factors in how children perform in school, and the achievement gap by family income is substantial. Children from low to middle-income households are more likely to experience housing instability, which has been shown to undermine academic achievement. Numerous studies indicate that children who change schools or are frequently absent experience declines in educational achievement. Not surprisingly, changing schools and absenteeism are two of the most common consequences of housing instability.
The General Assembly and governor can make a bold investment in the future of the state and school-aged children by funding a statewide rent relief program. The 5000 Families pilot program, proposed by the Virginia Housing Alliance and over a dozen other organizations, would target families with school-aged children who meet specific qualifications. The program would provide monthly rent relief to families to keep their rent affordable for the long term.
This strategy is powerful because it allows families to stay in their current home or find a more stable, permanent home of their choice. They are empowered to make the best decision for their family and achieve long-term housing stability, thus creating a strong foundation for success at school and every stage of life.
This pilot program will provide $100 million in rent relief over two years to 5,000 low-income families with school-aged children. There has been significant discussion about what can and can’t be included in the state budget. This program must be a priority. This program is something Virginia can afford and must prioritize, especially when we consider that spending on all housing programs accounted for only 0.69% of the state’s general funds in the most recent fiscal year.
The 5000 Families pilot program is a common-sense solution, with proven success from previous rent relief programs. A federal rent relief program, for example, reduced forced moves by almost 40% and the number of families living on the street from 13% to 3%.
It’s not just what we say that matters, but what we’re willing to fund. Where the state puts our taxpayer dollars says a lot about our leaders’ priorities. Fewer priorities are more important than ensuring the next generation of all Virginians are given the strongest foundation for success. That starts at home.
Brian Koziol is the executive director of the Virginia Housing Alliance. He can be reached at brian@vahousingalliance.org.
