Builders Patch | HousingCount: Arkansas affordable housing data and latest news
Arkansas
Summary
Arkansas state is facing challenges to housing affordability. For every 100 low-income renter households, there are 86 units available that are affordable to them. The median household income in the state is $33,562 whereas the median rent in the state is $612. Currently, the state is short over 13,143 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.
- 33.9% share of renter households
- 40.0% share of low-income households
- 39.1% share of rent-burdened households
Renter population data
Renters vs homeowners
| Type | Households | % share |
|---|---|---|
| Renter households | 393,163 | 33.9% |
| Homeowner households | 765,297 | 66.1% |
| Total households | 1,158,460 | 100.0% |
| Low-income renter households | - | - |
Renter households by income group
| Income Group | Households | % share |
|---|---|---|
| Extremely low-income (≤30% AMI) | 49,439 | 12.6% |
| Very low-income (31-50% AMI) | 46,216 | 11.8% |
| Low-income (51-80% AMI) | 61,720 | 15.7% |
| All low-income households (<80% AMI) | 157,375 | 40.0% |
Rent-burdened households
| Burden Level | Households | % share |
|---|---|---|
| Moderately rent-burdened | 82,871 | 21.1% |
| 30.0–34.9% | 32,748 | 8.3% |
| 35.0–39.9% | 21,343 | 5.4% |
| 40.0-49.9% | 28,780 | 7.3% |
| Severely rent-burdened | 70,786 | 18.0% |
| All rent-burdened households | 153,657 | 39.1% |
Affordable housing shortage
Rent vs median household income
| Year | Median Household Income ($) | Median Rent ($) |
|---|---|---|
| 2010 | 23,685 | 442 |
| 2021 | 33,562 | 612 |
| Increase (2010–2021) | 41.7% | 38.5% |
Affordable housing stock
| Metric | Units |
|---|---|
| Supply (current stock) | 82,512 |
| Demand (total units needed) | 95,655 |
| Shortage | 13,143 |
| Supply/Demand Ratio | 86.3% |
Finance institutions
Arkansas Development Finance Authority
- Contact: P.O. Box 8023, Little Rock, AR 72203-8023
List of loan programs
- Low-Income Housing Tax Credit (LIHTC) program
- Home Investment Partnerships
- National Housing Trust Fund (NHTF)
QAP document (Qualified Allocation Plan)
The QAP is a document that states, and a few local agencies, must develop in order to distribute federal Low Income Housing Tax Credits (LIHTCs), which can be awarded only to a building that fits the QAP’s priorities and criteria. The priorities must be appropriate to local conditions.
Housing news
How Fed Rate Cuts Impact the Housing Market
Fast Company, September 19, 2024
The Federal Reserve’s recent rate cuts will influence the housing market, but the effects won't be immediate. Although lower rates make borrowing more affordable, the ongoing housing shortage and existing conditions in the market remain tough obstacles.
Key Takeaways:
- Lower Mortgage Rates: Fed rate cuts have already reduced the average 30-year mortgage rate, which dropped from a peak of 7.79% in late 2023 to around 6.2%. This could ease the burden for homebuyers and those refinancing.
- Home Sales: As rates decline, more homeowners might be encouraged to sell, which could help alleviate some of the housing market’s stagnation. However, a full recovery of the resale market is expected to be gradual.
- Ongoing Supply Issues: Despite lower rates, housing supply shortages will persist, especially in high-demand areas.
Housing market won’t come ‘unstuck’ until 2026, economists predict
New York Post, June 26, 2024
Bank of America economists predict the US housing market won't recover until at least 2026, with home affordability improving only with a recession.
States With the Largest Homeless Populations
US News, May 15, 2024
In 2023, the number of homeless individuals in the U.S. reached approximately 653,000, representing a significant 12% increase compared to 2020.
Top 10 states with the largest homeless populations:
- California (181,399)
- New York (103,200)
- Florida (30,756)
- Washington (28,036)
- Texas (27,377)
- Oregon (20,142)
- Massachusetts (19,141)
- Colorado (14,439)
- Arizona (14,237)
- Pennsylvania (12,556)