The Intersection of Housing Shortages and Affordability
The housing shortage and lack of affordability are emerging as a top concern across the country, as revealed by two recent surveys conducted by Analyst Trenton Marlar of Embold Research. An independent nationwide survey of voters and an annual survey of Bay Area residents—conducted in collaboration with Joint Venture Silicon Valley and Bay Area News Group—underscore the critical urgency of the housing crisis. Soaring housing costs have placed financial pressure on residents, limiting their choices, and stifling upward mobility, especially for renters. This has caused an increasing demand for policymakers to act by expediting the development and approval of more housing.
The Bay Area is among the regions hardest hit. Housing costs and other necessities are straining household finances. Many are struggling to keep up with monthly rent and mortgage payments. In the Bay Area, a staggering 82% of residents consider housing costs to be a ‘very serious’ problem, leading to calls for more housing and even driving many to consider leaving the region. This crisis is the region’s top issue, affecting those hoping to buy homes or stay in their communities, and residents strongly link high housing costs with homelessness.
Soaring housing costs have similarly alarmed voters nationwide, with nine in ten voters describing the cost of housing in their communities as a serious problem, and 46% describing it as “very serious.” This concern is particularly pronounced in the West, where 59% of voters describe the cost of housing in their community as a “very serious” problem.
Given the widespread concern over rising housing costs, voters are urging local leaders to take action by facilitating the development of more housing. Nearly half of voters nationwide (47%) think that making housing more affordable should be a top priority for local leaders, ahead of other issues like crime prevention and improvements to infrastructure or K-12 education. In the Bay Area, the top three priorities for regional improvement also center on housing, with the leading choice being “building more affordable housing” (39%).
Voters in the Bay Area and across the nation share a deep concern about homelessness. Nationally, a majority view homelessness as a serious problem in their communities, with voters in the West particularly affected: 74% consider it a serious issue, significantly higher than in other regions. In the Bay Area, homelessness ranks alongside housing costs as a top concern, with 97% identifying it as a serious problem, including 79% who say it is “very serious.” Many voters see a strong link between housing affordability and homelessness: 61% nationally believe that “a lack of affordable housing in the community and the rising cost of living” are the primary causes of homelessness in their communities. This sentiment echoes concerns raised in the Bay Area in 2023 when the annual Silicon Valley Poll found that two-thirds of residents primarily attribute homelessness to a lack of affordable housing.
The burden of rising housing costs disproportionately affects renters. Nationally, 85% of renters say their income is falling behind the cost of housing, and nearly 80% are cost-burdened – spending 30% or more of their income on housing – with 41% spending more than half. Renters in the Bay Area are particularly squeezed, with three in four reporting that it has become harder to afford housing in the past year, including 49% who say it has become “much harder.”
Our nationwide survey found that the strain of high housing costs significantly affects renters’ lives. Nearly seven in ten (68%) voters report being unable to save for other financial goals, while 61% indicate they have experienced increased financial stress and mental health challenges. Notably, 46% indicated that they have reduced spending on food or even skipped meals, and 44% have gone into debt or relied on credit cards to cover basic expenses. Alarmingly, one in three renters indicated that they have delayed or forgone medical care due to high housing costs.
Homeownership feels increasingly out of reach for renters. Nationally, three in four renters who hope to buy a home doubt they will ever be able to afford one. Renters in the Bay Area feel a similar level of pessimism (70%).
While renters are the group most likely to feel squeezed by rising housing costs, homeowners are also feeling the strain. Nationwide, 62% of homeowners say their income is falling behind the cost of housing. Many also face challenges with their homeowner’s insurance: About half (52%) report their premiums have increased significantly, and one in five indicate they have avoided using their policies out of fear of cancellation or higher rates. These same issues are experienced by homeowners in the Bay Area, where they are more than twice as likely as homeowners nationwide (29% vs. 14%) to say they know of people who have had policies canceled.
The high cost of housing also limits people’s choices and opportunities. Nearly half of voters nationwide (48%) indicate that they would move if they had the resources to do so, but 92% of those same voters say that high housing costs prevent them from relocating. In the Bay Area, 47% of residents are considering moving away in the next few years, with housing costs cited as a primary reason. In other words, the high cost of housing may keep people from living where they want to, and actively drive them away.
The housing shortage affects communities nationwide, with an especially severe impact in the Bay Area. Rising housing costs are causing significant financial stress, limiting choices, and hindering upward mobility, particularly for renters. It is no surprise that many voters are calling on local policymakers to make housing affordability a top priority.
Meet the Analyst
Trenton Marlar brings over seven years of survey research experience to Embold. As a trained political scientist, he has leveraged survey data to explain the political attitudes and behaviors of individuals living in countries around the world. Trenton holds Ph.D. in Political Science from the University of Colorado Boulder where he researched the effects of economic inequality on citizens’ evaluations of democracy. He also holds a master’s degree from the London School of Economics and a bachelor’s degree from Oregon State University. Trenton currently resides in Colorado.
In addition to his position at Embold Research, Trenton serves as an Affiliated Researcher at the Silicon Valley Institute for Regional Studies, where he leads survey research for Joint Venture’s annual Silicon Valley Poll.