By Lewis Loflin
A 2002 study by the National Housing Conference highlighted that 61% of working families spending over half their income on housing lived outside urban areas, challenging the assumption that affordability issues were primarily urban. Today, this trend persists, with housing costs outpacing wages across the U.S., affecting both renters and homeowners in suburban and rural regions, including areas like Washington County, Virginia.
According to the Harvard Joint Center for Housing Studies’ 2024 report, 41 million U.S. households—nearly one-third—are cost-burdened, spending over 30% of their income on housing. Of these, 21.2 million renters and 19 million homeowners are affected, with 12.1 million renter households spending over 50% of their income, a record high. This represents a significant increase from the 4 million households reported in 2002, driven by a 21% rise in median rent since 2001, compared to just a 2% increase in median renter income.
[](https://www.jchs.harvard.edu/blog/high-housing-costs-are-consuming-household-incomes)In 2023, the U.S. Census Bureau reported that 49.7% of renter households (21 million) spent over 30% of their income on housing, with the median rent-to-income ratio at 31%. Homeowners face burdens too, with 18.8 million spending over 30% on housing costs, particularly those with mortgages (21.1% median ratio). Low- and moderate-income families, defined as those earning between the federal minimum wage ($15,080 in 2023) and 120% of area median income, are disproportionately affected.
[](https://www.census.gov/newsroom/press-releases/2024/renter-households-cost-burdened-race.html)While the 2002 study noted a 67% increase in severely cost-burdened households from 1997 to 2001, recent data shows the crisis has deepened. From 2000 to 2022, median home prices rose 162% to $433,100, while median household income grew only 78% to $74,580. This gap makes homeownership unattainable for many, with a healthy home-price-to-income ratio of 2.6 requiring an income of $166,600—far above the median.
[](https://lbmjournal.com/home-prices-are-rising-2x-faster-than-income/)| Metric | 2001 | 2022/2023 |
|---|---|---|
| Median Home Price | $175,200 | $433,100 |
| Median Household Income | $42,228 | $74,580 |
| Median Rent | $535 | $1,406 |
| Cost-Burdened Renters | ~50% | 49.7% |
The 2002 finding that 61% of severely cost-burdened workers lived outside cities remains relevant. Recent Pew Research Center data indicates that cost burdens are not limited to urban areas; many suburban and rural counties, including those in Virginia, face similar challenges. For example, in 2022, 60% of families earning $20,000–$50,000 spent over 30% on housing, with suburban counties like Henry County, Georgia, seeing an 88% increase in cost-burdened homeowners from 2019 to 2021.
[](https://home.treasury.gov/news/featured-stories/rent-house-prices-and-demographics)[](https://eig.org/housing-affordability/)In Washington County, Virginia, local housing costs reflect national trends, with median home prices rising faster than wages, pushing many working families to allocate significant income to housing.
The affordability crisis stems from multiple factors: a shortage of 6 million affordable rental units since 2010, zoning restrictions limiting new construction, and rising costs for land, labor, and insurance. The U.S. Department of Housing and Urban Development notes that households spending over 30% on housing are “cost-burdened,” often cutting back on essentials like food and healthcare. For low-income renters, 83% are cost-burdened, with 65% spending over 50% of their income.
[](https://www.npr.org/2024/06/20/nx-s1-5005972/home-prices-wages-paychecks-rent-housing-harvard-report)[](https://www.jchs.harvard.edu/blog/high-housing-costs-are-consuming-household-incomes)Ann Schnare, former president of the Center for Housing Policy, attributed part of the 2002 crisis to a slowing economy. Today, experts like Daniel McCue from Harvard emphasize inadequate housing supply and high interest rates as key drivers, exacerbating homelessness and financial strain. In 2023, 653,100 individuals were homeless, a 70,000 increase from the prior year.
[](https://www.governing.com/urban/the-factors-driving-housing-costs-to-all-time-highs)Acknowledgment: I’d like to thank Grok, an AI by xAI, for helping me draft and refine this article. The final edits and perspective are my own.
