An article published in Social Currents, “Rent Burden and Demographic Change Among Veterans: A Research Brief,” aims to understand recent trends in rental housing cost burdens and housing affordability among military veterans in the U.S. Historically, the veteran subpopulation has been relatively insulated from housing affordability challenges compared to members of the public, even while veterans remain overrepresented among people experiencing homelessness. The new paper finds that the share of veteran renters who are cost-burdened has drastically increased over the last five decades and is now similar to the share among the general renter population. The researchers attribute this shift in large part to growing demographic diversity in the veteran population, with an increasing share of veterans belonging to groups that are known to be at greater risk of housing cost burden and housing unaffordability.
The researchers utilized data from the Panel Study of Income Dynamics (PSID), a nationally representative longitudinal survey that began in 1968 and tracks the economic, social, and health-related behaviors of multiple generations of U.S. families over time. Drawing upon PSID data collected between 1976 and 2021, the researchers created statistical models to estimate the average housing cost burden over time for veteran and non-veteran renter households based on the ratio of total housing costs to total family income (rent-to-income ratio). They caution that because the PSID does not consider utilities in housing costs, it may underestimate the actual housing cost burden renters face. Veteran households were defined as those in which the head of household self-reported being a veteran of the U.S. armed forces. Cost-burdened (or rent-burdened) households were defined as those with a rent-to-income ratio over 30%; severely cost-burdened households were those with a rent-to-income ratio over 50%. The researchers also examined how trends in experiences of cost burden over time varied between veteran renter households with different demographic characteristics.
The researchers found that, at the beginning of the study period, the share of cost-burdened veteran renters (6%) was considerably lower than the share of cost-burdened non-veteran renters (17%). By 2021, about a third of both veteran and non-veteran renters were cost burdened. Similarly, the share of severely cost-burdened renters increased from 1% among veteran renters and 7% among non-veteran renters in 1976 to roughly 17% among both groups in 2021. Upon examining how these trends varied across demographic subgroups within the veteran population, the researchers discovered that changes in cost burden were associated with increases in the shares of veteran renters who are female, non-white, new householders, or who have disabilities, as well as decreasing shares of veteran renters living with a spouse or cohabitating partner. Prior research on the general renter population has demonstrated that these groups are at greater risk of housing unaffordability due to structural disadvantages in housing and labor markets, which suggests that these disadvantages have become more prominent among the veteran renter population as it has diversified over time.
The researchers noted that changes in the share of persons with disabilities among the veteran renter population were particularly associated with growing cost burdens. Upon closer examination, they discovered that the prevalence of cost burden among disabled veteran renters was 20% in 1976 – higher than that of both the broader veteran renter population and the general renter population. By 1999, the share of cost-burdened disabled veteran renters had nearly doubled. By 2021, nearly half of disabled veteran renters were cost-burdened, and about a third were severely cost-burdened. Veterans with disabilities are more likely to rely partially or completely on fixed incomes such as disability benefits, which can make them particularly vulnerable to housing instability when housing costs rise.
The authors conclude by offering several policy recommendations aimed at alleviating the housing burden on veteran renters, specifically those most vulnerable to rent affordability issues. First, they recommend adjusting disability benefits to reflect local variations in cost-of-living, similar to the Basic Allowance for Housing (BAH) provided to active-duty service members. This would ensure that disabled veterans in high-cost housing areas receive adequate support to cover their rent, addressing the growing issue of rent burdens in regions with rapidly increasing housing costs. Secondly, they highlight the importance of expanding the Low-Income Housing Tax Credit (LIHTC), a federal program that incentivizes the development of affordable housing by providing tax credits to private developers. This expansion could lead to more affordable housing units, particularly for families and female veterans, who are disproportionately impacted by housing cost burdens. The authors suggest that targeting LIHTC to create mixed-income communities could further support vulnerable veteran populations. Lastly, the authors propose expanding the Grant and Per Diem (GPD) program, a community-based initiative that provides transitional housing and supportive services to veterans experiencing homelessness, to provide emergency housing assistance to new veteran households, particularly those transitioning from military to civilian life or dealing with life-altering events such as divorce or family loss. These expansions would offer critical support at a time when veterans are most vulnerable to housing instability.
Read the article at: https://bit.ly/3Y8vMhy