New United Way Worldwide Report Finds Rental Housing Costs Rise Sharply as Help for the Lowest-Income Renters is Slashed

 

Several just-released studies have found that the current economic decline, fueled by increasing prices, poses a significant threat to household necessities, including housing, utilities, and groceries - and could lead to business contraction and job losses. This growing risk is underlined by new data from United Way Worldwide, which provides support to 211, a critical and free service connecting people to local programs and resources.

The 2023-2024 Annual Report from United Way highlights that financial instability is overwhelming the most fragile people in our communities. United Way Worldwide’s president and chief executive, Angela F. Williams, said that the 211 network is an essential part of America’s infrastructure because it’s a lifeline between people in need and the resources available to support them. Last year, the 211 network responded to 16.8 million requests for help. The United Way report emphasizes this amounts to 32 calls, texts, or chats per minute. People were asking for assistance with basic needs, which mostly fell into three categories: housing assistance, utility bills, and food. 

In the case of housing support, the volume of referrals nearly doubled, from 2019's 2.9 million to 5.6 million in 2024. Local 211s “are dealing with calls from people because their landlords are literally increasing rents by 20%, 30%, 50%,” Williams said. “People who are on fixed income or seniors can’t meet those increased rents and then have to leave or are evicted.”

The cost of housing for both renters and homeowners went up slightly in March, by 0.2%, compared with February, according to the Bureau of Labor Statistics. Meanwhile, a Gallup poll conducted after the president’s “Liberation Day” tariffs found a record-high 53% of Americans said their financial situation is worsening.

A report by the National Low Income Housing Coalition found the U.S. has a shortage of 7.1 million affordable rental homes, resulting in only 35 affordable homes for every 100 households with extremely low-income renters. No state has an adequate supply of affordable and available rentals for the lowest-income households, according to the coalition. As a result, three-quarters of these renters spend over of their income on rent. When such a high percentage of income goes to housing, there is not much left to cover other expenses.

During the same time, the current administration has been dismantling government agencies whose mission has been to serve struggling families. Federal funds to nonprofits are being choked off or canceled. Programs to serve the poor are under attack. Last month, for example, the entire staff administering the Low Income Home Energy Assistance Program - which provides financial assistance to help people pay their heating and cooling bills - was fired as part of the federal workforce culling. The current administration wants to eliminate funding for the $4.1 billion program, which assists over 6 million through block grants to states. The program provides funds to states, which then use the money to help people pay to heat and cool their homes and prevent utilities from shutting off the air or heat.

The bleak outlook can also be seen in reports like the New York Federal Reserve’s Survey of Consumer Expectations, which it released recently. Consumer sentiment regarding current personal finances has fallen sharply since the tariff wars began. The New York Federal Reserve has highlighted a troubling trend: More households now expect slower income growth, anticipate greater difficulty finding new employment if they lose their current jobs, and an increased risk of missing minimum payments on debts such as credit cards, mortgages, and student loans.

Williams argues that the core problem lies not in discretionary spending but in systemic issues leading families into significant financial distress, the effects of which could persist for generations. She said she sees a “perfect storm” if significant inflation because of tariffs coincides with government benefit reductions or eliminations - combined with defunded community groups and nonprofits supporting the most financially vulnerable.

Read the May 9, 2025 Washington Post article.

(Image by storyset on Freepik.com.)

Maryland Continues to be Not Affordable for Many

Recent census data indicates that the cost of housing in the Baltimore area and the Maryland is increasing at a slower rate than the US. However, The increase of Maryland's housing costs is over 15% higher than the national average and a larger percentage of renters are cost burdened. The median Maryland renter pays around $1,600 a month in rent and utilities, about $100 more than the average Baltimore-area renter. Renters’ costs have increased 22.5% statewide and 24% in the Baltimore region compared with 32% nationally.

Nationally, the number of cost-burdened renter households hit yet another record high in 2023. In 2023, the number of renter households spending more than 30% of their incomes on rent and utilities was an all-time high of 22.6 million. A record-high 12.1 million severely burdened households spent over half of their incomes on housing costs. About half of all renter households were cost burdened in 2023. This rate was essentially unchanged compared to 2022, but rose 3.2 percentage points from pre-pandemic levels and 9.0 percentage points since 2001.

Nationally and within Maryland, renters are more likely to spend more than 30% of their income on housing. Statewide more than 46% of renters are cost burdened compared with a quarter of homeowners. In the Baltimore area (including Queen Anne’s County, Baltimore City, and the five surrounding counties) the same share of renters are cost burdened while the rate for mortgage holders is over a percentage point lower.

Baltimore City

The City has a mismatch between rental costs and the kind of rental units being constructed. Despite the growing unaffordability of housing in Maryland and especially the Baltimore area, luxury apartment buildings continue to be built. Since 2020, 80% newly constructed apartment buildings in Baltimore were luxury housing, according to real estate data firm the Costar Group. Most housing development worldwide is higher-end because of the higher profit potential for developers. 

Some areas of Baltimore have a particularly high cost burden for renters. Tract 907 in Baltimore’s Coldstream-Homestead-Montebello neighborhood, for example, 70% of households are cost burdened. Rental units are just over half of the housing stock. The Community Development Network of Maryland said incomes were not rising to meet the costs of rent, emphasizing the mismatch between the high number of luxury units versus what Baltimoreans can afford.

Anne Arundel County

In Arundel's tract 7305.11 in the Glen Burnie area, 67% of households are cost burdened. County Executive Steuart Pittman said the disparity was part of a “housing crisis.” “Affordability is more important than just supply,” Pittman said. “The affordability problem doesn’t get any better when all you build is luxury housing.”

Current housing developments across the county are not required to have affordable housing, but new projects will be. Under the Housing Attainability Act, becoming effective in July, new housing developments over 20 units will be required to have 15% of its units for affordable rentals and 10% for affordable homes for sale.

Howard County

Maryland’s most expensive jurisdiction for renters and mortgage holders, Howard - where 28% of housing units are rented - has the largest affordability gap between homeowners and renters. Some 44% of County renters were cost burdened compared to 20% of homeowners. The median rent in the county is $2,040 a month, while median monthly housing costs for homeowners was $2,950.

The County has recently made investments to stabilize the housing situation in the area, such as $2 million invested to subsidize rentals and security deposit guarantees for the families of county students experiencing homelessness. The County’s Moderate Income Housing Unit Program requires a percentage of housing built to be affordable to households of moderate income - with moderate income level defined as “household income less than 80% of the Howard County median income (AMI) for units for sale and household income less than 60% of the Howard County median income for rental units."

Read the December 12, 2024 Baltimore Sun article.