This month I am celebrating my birthday. And so, it seems fitting to indulge with a little birthday wish.

I want people to understand what we mean when we say affordable housing. 

Now before you stop reading because you don’t think this is an issue that impacts you… stick with me. 

Here’s what we know. Central Ohio is experiencing a housing crisis. But what many may not understand is what we mean by affordable housing. 

Affordable housing is defined as an individual or family paying no more than 30% of their household income on housing. 

What is cost burdened housing?

A household paying half or more of its income on housing – often leaving people unable to pay for other necessary items, like food or medical supplies.  

We all need access to affordable housing. Everyone from workers making minimum wage to fixed-income seniors to high earners and recent graduates. 

What is AMI and how does it play a role in affordable housing?

Leaders need a way to determine what is affordable for a given region. They do that by using area median income (AMI), which is set annually by the government using census numbers and other data. It defines the midpoint of a region’s income distribution and is used to set income and rent limits for affordable housing development. 

Where is the greatest housing need?

Households earning less than 30 percent AMI have the greatest need, but there are still many families and individuals making 80 to 100 AMI who are housing cost burdened. Which can cause a huge strain on those households and the economy overall.

Is this just a rent problem or is it a homeownership problem?

It’s both. We know we’re not building enough starter homes for recent graduates and young parents. Owning a home is one of the keys to building individual wealth. If access to homeownership is cut off people can’t create wealth for themselves or their families. This also contributes to the racial wealth gap, as the homeownership rate for Black families is 46.4%, compared to 75.8% for white families. 

Access to decent, stable affordable housing provides critical stability for families and individuals. When people have affordable housing options it creates a larger positive economic impact for the whole community. When you can afford your rent or mortgage payment if frees up your ability to purchase other essential items. 

In conclusion…

The one thing I want you to take away from this birthday wish reflection is that the biggest misconception about affordable housing is that it is someone else’s problem. Affordable housing isn’t only an issue for working poor or homeless people. Without affordable housing, economic development suffers, which has an impact on us all. Access to affordable housing benefits everyone.