Imagine Cities |AFFORDABLE HOUSING
People are in need of affordable housing when more than 30% of their pre-tax income goes towards housing. When housing costs surpass 30%, people are challenged when trying to cover other essential costs such as food, clothing, medicine and childcare. The ability to afford housing is impacted by household debt, lack of rental units, low and stagnating incomes, and demographics (such as increasing young adults staying single, single parents and single retirees). Most retired seniors use the equity in their home for retirement, so improving housing affordability for young adults also reduces the use of government assistance when they are seniors. To assist in resolving this issue, which has a direct negative impact on economic growth, governments and not-for-profits invest in various solutions including emergency shelters, transitional housing, supportive housing and subsidized housing.