The Impact of Income Inequality on Affordable Housing in the United States

Résumé fourni par la source

This study examines the relationship between income inequality and housing affordability in the United States, using rent burden as the primary measure of affordability and the Gini coefficient as the indicator of inequality. Drawing on panel data from 2016 to 2021, the analysis reveals that rent burdens increased modestly over time, reflecting persistent challenges to affordability. Income inequality remained relatively stable on average, though regional disparities widened, indicating growing polarization in income distribution. The correlation results indicate a weak but statistically significant positive association between inequality and rent burden. At the same time, regression estimates confirm a strong, consistent, and significant effect of income inequality on housing affordability across all models and time frames. However, low explanatory power suggests that additional structural factors influence rent burdens beyond income inequality alone. The study recommends that policymakers strengthen affordable housing support, adopt income-redistributive measures, implement region-specific interventions for high-inequality areas, and integrate long-term strategies that expand economic opportunity while addressing regulatory and market constraints. Collectively, these measures can mitigate rent burdens and enhance housing affordability across diverse socioeconomic regions.

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