Affordable housing is one of the most talked-about issues in California, yet it is also one of the most misunderstood. Linc has developed a six-part series dedicated to bringing clarity to the topic of conversation, providing clear and accessible information about what affordable housing means for the people who live in it and the communities surrounding it. Each installment will tackle a common myth, share the evidence, and highlight how affordable housing is integral to building stronger, more inclusive neighborhoods.
Demystifying Affordable Housing Part One: The Need for Affordable Housing
What do we mean when we say “affordable housing” anyway?
The term “affordable housing” generally refers to housing that costs no more than 30% of a household’s gross income, including rent (or mortgage) and basic utilities. This standard is widely used by the U.S. Department of Housing and Urban Development (HUD) and other agencies to determine whether housing is considered affordable to the people living in it.
Why does it matter if housing is affordable?
Affordable housing opens the door to a better life for not only individuals but surrounding neighborhoods and the larger community. It contributes to local economic stability, supports workforce retention, improves public health outcomes, and fosters more inclusive neighborhoods.
How big of a problem is housing affordability anyway?
Housing affordability is one of the most pressing challenges facing California and the nation. According to the National Low Income Housing Coalition, in Los Angeles County alone, there are nearly half a million extremely low-income renter households, defined as those earning 30% or less of the area median income, which for 2025 ranges from $31,850 (for a single person household) to $60,000 for a family of eight as defined by the Housing Authority of the County of Los Angeles.
According to the California Housing Partnership’s 2025 Los Angeles County Affordable Housing Needs Report, in order to afford the county’s average rent of $2,578, a renter would need to earn $49.58 per hour—nearly three times the county’s $17.81 minimum wage.
This gap between incomes and rising housing costs destabilizes families and communities. Without affordable housing, people are forced to choose between rent and essentials like food, healthcare or transportation. Overcrowding, food insecurity and health challenges follow, while the risk of homelessness grows. Research by the U.S. Government Accountability Office shows that every $100 increase in median rent is associated with a 9% rise in homelessness.
Affordable housing strengthens entire communities by boosting economic, social, and health outcomes. According to the United Way Bay Area, when families pay less for housing, they can spend more at local businesses and on healthier food and healthcare, stimulating local economies. Affordable housing reduces evictions—critical given that 25% of renters spend over half their income on rent—and promotes housing stability. It also supports healthier populations by reducing exposure to unsafe housing conditions and freeing resources for medical care. Construction and management of affordable housing create jobs, while stable homes improve school outcomes for children, reducing long-term poverty. For every dollar spent reducing childhood poverty, the U.S. could save at least $7 in future costs, highlighting the economic value of housing investments.
In our next installment, we will demystify the benefits of locating affordable housing in high-opportunity neighborhoods.
