‘The math does not lie’: Why Austin only built 543 low-income homes while delivering 15,000 for the middle class

In Austin, Texas, only 543 low-income homes were built while 15,000 were constructed for the middle class. Matthew Davis, a homeless shelter resident, earns only a few hundred dollars a month from donating plasma and finds it difficult to afford even the city’s affordable units, which are classified as such despite sitting empty.

Mathew, who earns under $28,000 a year, cannot afford a $450-a-month tiny home with communal bathroom, underscoring the affordability gap for those earning 50% of the area’s median income or higher. Despite the U.S. having only about 4 million affordable rental units for 11 million low-income households, federal housing programs finance nearly 4 million affordable units each year.

However, experts argue that the Low-Income Housing Tax Credit program, which finances these units, is costly and bureaucratic, with complex rules that increase construction costs. The majority of these units are for those earning at least 50% of the area’s median income, while extremely low-income renters pay over half their income on rent and utilities.

As a result, apartments meant for the poorest are left vacant due to their inability to afford them. Affordable housing rents for those earning 60% of the area’s median income are now approaching market rates, causing some to opt for market-rate apartments with less income verification for faster approval. This trend has led to growing vacancies in affordable housing units, with Austin reporting nearly 16% vacancy among its affordable units.