# Delaware

### Summary

Delaware state is facing an acute affordable housing crisis. For every 100 low-income renter households, there are 54 units available that are affordable to them. The median rent in the state has risen by 31% since 2010, while median household incomes have grown by 33%. Currently, the state is short over 11,738 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.

#### Key Statistics
- 28.5% share of renter households
- 40.7% share of low-income households
- 46.2% share of rent-burdened households

### Renter population data

| Type of Households            | Households | % Share  |
|-------------------------------|------------|----------|
| Renter households             | 108,662    | 28.5%    |
| Homeowner households          | 272,435    | 71.5%    |
| Total households              | 381,097    | 100.0%   |

#### Low-income renter households

| Income Group                  | Households | % Share  |
|-------------------------------|------------|----------|
| Extremely low-income (≤30% AMI)| 15,225     | 14.0%    |
| Very low-income (31-50% AMI)  | 10,452     | 9.6%     |
| Low-income (51-80% AMI)       | 18,499     | 17.0%    |
| All low-income households      | 44,176     | 40.7%    |

### Rent-burdened households

| Burden Type                  | Households | % Share  |
|-------------------------------|------------|----------|
| Moderately rent-burdened      | 25,012     | 23.0%    |
| 30.0–34.9%                    | 9,210      | 8.5%     |
| 35.0–39.9%                    | 6,817      | 6.3%     |
| 40.0-49.9%                    | 8,985      | 8.3%     |
| Severely rent-burdened        | 25,136     | 23.1%    |
| All rent-burdened households  | 50,148     | 46.2%    |

### Affordable housing shortage

#### Rent vs median household income

| Year  | Median Household Income | Median Rent | Increase (%) | 
|-------|------------------------|-------------|--------------|
| 2010  | $34,130                | $780        | -            |
| 2021  | $45,396                | $1,020      | 30.8%        |

#### Affordable housing stock

| Supply                    | Demand                    | Shortage          | Supply/Demand Ratio |
|--------------------------|---------------------------|-------------------|---------------------|
| 13,939                   | 25,677                    | 11,738            | 54.3%               |

### Finance institutions

#### Delaware State Housing Authority

Delaware State Housing Authority

18 The Green  
Dover, DE 19901-3612

**List of loan programs**
- [Multifamily Revenue Bond Accelerator Fund](http://www.destatehousing.com/Developers/developermedia/mrba_guidelines.pdf)
- [Multifamily Preservation Fund](http://www.destatehousing.com/Developers/developermedia/mp_guidelines.pdf)
- [Catalyst Fund](http://www.destatehousing.com/Developers/dv_cf.php)
- [Downtown Development Districts Rebate Program](http://www.destatehousing.com/Developers/dv_ddd.php)
- [Market Pressure Relief Fund](http://www.destatehousing.com/Developers/developermedia/mprf_guidelines.pdf)
- [Strong Neighborhoods Housing Fund](http://www.destatehousing.com/Developers/dv_snhf.php)
- [Housing Development Fund](http://www.destatehousing.com/Developers/dv_hdf.php)
- [HOME Investment Partnerships (HOME)](http://www.destatehousing.com/Developers/dv_home.php)
- [Low Income Housing Tax Credits (LIHTC)](http://www.destatehousing.com/Developers/dv_lihtc.php)
- [National Housing Trust Fund (NHTF)](http://www.destatehousing.com/Developers/dv_nhtf.php)
- [Multi-Family Mortgage Revenue Bond Program (MFMRB)](http://www.destatehousing.com/Developers/dv_mfmrb.php)

### Housing news

**September 19, 2024**  
**Fast Company**  
##### How Fed Rate Cuts Impact the Housing Market
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. Supply constraints, driven by zoning restrictions and labor/material shortages, remain a barrier to affordability.

While the Fed’s actions are a positive step toward stabilizing the housing market, broader structural challenges—particularly the lack of new housing supply—will continue to affect the market.

[Full article](https://www.fastcompany.com/91193735/housing-market-what-fed-rate-cuts-will-actually-do?utm_campaign=News%20digests%202024&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-_nm9nCdKkRNvu6uHb-Oj_MHevbBny0zyg3GmWdJmo6ZfcNZjLMGPZGhD7XXrm6HHPhg_i4)

**June 26, 2024**  
**New York Post**  
##### Housing market won’t come ‘unstuck’ until 2026, economists predict — here’s why
Bank of America economists predict the US housing market won't recover until at least 2026, with home affordability improving only with a recession.

**[Full article](https://nypost.com/2024/06/26/business/housing-market-wont-bounce-back-until-2026-economists-predict-heres-why/?utm_campaign=News%20digests%202024&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-98J9VclPF2voPBvWkazFLY09dd5s4nbERm2DCK2xfTjq2DhcVtm3TG0A3DQb32A6LG3unn)**

**Housing trends**: The messages of various articles shall be captured here.