Background
Safe, comfortable, and affordable housing is commonly taken for granted; however, this is often not the case for many New Jerseyans. New Jersey is known for many things: our bustling bagel shops and our boardwalk beaches; unfortunately, low housing costs or taxes are not one of those things. New Jersey affordable housing is a term that many view as oxymoronic as a majority of housing is generally especially expensive. With affordable housing scarce, particularly in certain areas, one must wonder what causes this infamous New Jersey housing hassle!
For starters, New Jersey is the most densely populated state and also has the highest median income in the country. According to the US Census, in 2022, New Jersey’s median income was reported to be $96,346, $21,000 higher than the national median income of $74,755.
Statewide housing prices tend to reflect the typical residents’ wealth, which makes it more difficult for lower socioeconomic residents to afford housing. Since New Jersey boasts some of the most expensive real estate, lower-income New Jerseyans will struggle to find housing within their price range.
Unsurprisingly, Mountain Lakes happens to be one of the more expensive areas to live and afford. According to redfin.com, the median price of a home in Mountain Lakes sold for approximately $1.3 million in March 2023. For many, this price range would be considered egregious.
According to Zillow, the average price of a home across the United States is around $350,000, whereas the average price in New Jersey is far greater at $507,923 (145% of the typical US price). According to many, while the median household income in New Jersey is above the U.S. median, an income-to-home-value ratio must be considered to bring affordability to lower-income New Jerseyans.
Government Resources
Luckily, Government support and resources are in place to help New Jerseyans obtain affordable housing. The New Jersey Housing Resource Center (NJHRC) New Jersey Housing Resource Center | ABOUT THE HRC (nj.gov) is a resource that helps New Jersey residents find affordable housing online. This website allows residents to find affordable rental housing, housing for purchase, and housing with accessibility features. A recent search using this site labeled only one rental in Mountain Lakes as having an affordable rent, priced at $1100 per month, which is also advertised as disabled Veterans housing. This lack of available housing in our area underscores the issue of affordable housing, especially in select geographic regions.
Section 8 Program
Section 8 housing is a government-sponsored program (US Department of Housing and Urban Development or HUD) that supports people in finding affordable housing. This program was started through the Housing Act of 1937. Later, the HUD was given the ability to issue vouchers to renters to help subsidize the cost of their rent. It is estimated that Section 8 helps to provide subsidies to about 3.3 million low-income families, the elderly, and disabled people in the nation.
In order to obtain Section 8 subsidies, an individual or family must have a household income of less than 50% of the median income in that particular region. Factors such as assets and family size are considered as well, but preference is ultimately given to those with the most dire situations. With a Section 8 voucher, the government issues rent payments greater than 30% of the family’s gross yearly income, which they deem reasonable to contribute to the rent.
Conclusion
While affordable housing may be difficult to find in New Jersey, there are some supports available to help ease the process for low-income individuals and families. Like affordable housing, these resources are scarce, and can provide only some relief to a seemingly unconquerable problem.
Resources for New Jersey residents can be found at the New Jersey Housing Resource Center New Jersey Housing Resource Center | ABOUT THE HRC (nj.gov). In addition, Section 8 housing vouchers, issued by the federal government, can help support low-income individuals’ rent. Affordable housing is a right that should be available to all U.S. citizens, and government support should be put in place to achieve safe, affordable housing for all.
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