At the core of the American housing system of today is the fundamental belief that housing should be a vehicle for private wealth creation. Privately owned housing on the market makes up 96.3% of the total housing stock in the U.S. Homeownership, once one of the surest ways for a family to accumulate wealth, has declined across the country; rates dropped to 63.4% in 2016, their lowest since 1967. Big banks and mortgage companies attach stringent criteria and high interest rates to loans that often lock lower-income people out of buying a home.
So instead, they’re forced into the rental market. As wages have stagnated and property costs have continued to rise, an astonishing number of Americans struggle to afford monthly payments. Almost half of all renters spend more than 30% of their income on rent, which is the ratio the federal government deems affordable. One in four renters shell out half their income to hold onto a place to live. Homeowners aren’t any better off: Around 41% are struggling to make mortgage payments, and risking foreclosure as a result. Across market-based housing, people of color, gender nonconforming people, and those with a criminal record routinely face barriers to securing housing.