Prompt Three
Housing Safety Net
According to the Harvard Joint Center for Housing Studies, as of 2022, half of all renter households in the US were cost-burdened, meaning that they spend more than 30% of their income on housing and utilities. Of these 22.4 million cost-burdened households, roughly half qualified as severely cost-burdened, with more than 50% of their household income going to housing and utilities. Both of these figures represent all-time highs, underscoring the growing affordability crisis faced by millions of renters across the country.
Homeowners, too, face significant affordability challenges. Between 2019 and 2022, the number of cost-burdened homeowners grew to 19.7 million, or nearly 25% of all homeowner households. As housing prices continue to rise, so too do insurance premiums and property taxes, causing many homeowners to choose between basic home maintenance and other daily necessities.
While housing affordability is worsening across the board, the impact is disproportionately felt by households of color. Both homeowning and renting Black and Hispanic households face a higher likelihood of being cost-burdened. As of 2022, when the last measure took place, more than 50% of Black, Hispanic, and multiracial renter households were cost-burdened. For low-income renters from these groups, cost-burdened rates were even higher, at 85% and 87%, respectively, for Black and Hispanic renter households.
Despite the growing need, federal funding has not kept pace with rising housing costs. While local and state governments have attempted to keep up, leveraging housing trust funds, bonds, and American Rescue Plan funds, these efforts are not enough to address the full scope of the housing crisis. Currently, more than three out of every four income-eligible renter households receives no housing assistance, and as of 2023, homelessness rates reached a record high, with 653,100 people experiencing homelessness.
Your Challenge
You are tasked with designing a solution that strengthens the housing safety net for those experiencing financial hardship, ensuring that individuals and families—whether renters or homeowners—have access to safe, stable, and affordable housing. This could involve new financial products, such as expanded emergency rental assistance, mortgage forbearance programs, or low-interest loan options for homeowners and renters alike. Alternatively, it might include policy changes, such as improved tenant protections, foreclosure prevention measures, or incentives for landlords and homeowners to preserve affordable housing. Solutions may consider both immediate interventions to prevent homelessness and housing loss, as well as long-term strategies to increase and preserve access to affordable housing.
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Good to Know
As you think through your submission, bear in mind the importance of creating a clear path to implementation. Solutions may be envisioned as standalone business models, product development recommendations for an existing business or organization, or policy recommendations for a government agency. Other models may also work. As you weigh your options, be sure to consider how they impact the feasibility and scalability of your idea.
In addition to choosing a viable “vehicle” for your idea as detailed above, successful submissions usually focus on a specific geographic area and/or population. Housing solutions are rarely one-size-fits-all, and different areas and groups have their own distinct challenges and needs. Being specific about your target population and/or place will allow you to articulate to the judges how and why your solution is a fit.
