Delaware is short more than 19,400 affordable residences for renters who earn 50% or less of the state’s area median income, or about $32,000 a year.
That’s according to the 2023 Delaware Housing Needs Assessment, which underscores the need for inexpensive units statewide.
The lack of housing is one of the top barriers contributing to poverty in the First State and beyond.
It is especially needed in our two largest cities: Wilmington and Dover, which respectively have a 24% and 20.5% poverty rate, more than double the state’s 9.4% number, according to the University of Delaware Center for Community Research & Service’s 2023 report on poverty in Delaware.
“There is a lack of housing, period. There’s a lack of affordable housing. Housing (access) is really the crux of it, being able to identify these communities for stable, secure housing,” said Stephanie Griffin, director of housing development for the Delaware State Housing Authority.
That absence of options in general, coupled with rising costs, has put many residents in unstable living situations.
Further, as of last year, half of Delaware renters and 20% of owners spent over 30% of their gross income on residency, higher than the standard industry rate, according to the 2023 assessment.
Additionally, 8% of state residents were living out of their cars, couch surfing or temporarily living with friends or family, and at least 1,245 people were experiencing homelessness in the 2023 point-in-time count.
Ms. Griffin said availability and price cannot be separated when analyzing issues facing the housing market.
“We know that there’s a shortage of housing that is affordable for the population that is within their income range. So, you either build more (units) to make sure more affordable housing (is) available to them, or you find a way to increase income to make it so housing that is available is accessible to people based on what they can afford,” she said. “(Cost and availability) both kind of impact each other right now.”
Meantime, there are a number of programs that can help citizens afford homes.
While the Delaware State Housing Authority typically focuses its funding effort on new units, the state also offers federally funded housing choice vouchers, which allow individuals to use a percentage of their income for rent and utilities, while the voucher covers the rest, dependent on income.
However, the Housing Needs Assessment notes difficulties in this process, for example, the small prevalence of landlords who accept vouchers, long waitlists for obtaining vouchers, a concentration of units that accept vouchers in Wilmington due to shortages in other areas and income discrimination.
“Stakeholders feel that landlords are more likely to turn down voucher holders in the current market and this has increased in recent years. This has had a disproportionate impact on Black and African American renters, who are more likely to rely on voucher assistance,” the report states.
According to 2020 U.S. census data, Wilmington’s population was 54% African American, and Dover’s was 41%.
“These discussions prompted stakeholders to advocate for source of income protections. Waitlists in the state were described as years long with one participant estimating there are 8,000 households on the state’s waitlist,” the report continues.
Delaware also offers the State Rental Assistance Program, which aids low-income individuals with affordable housing and related services. Participants direct 28% of their monthly income toward rent, with the remaining portion subsidized by the program.
While Wilmington and Dover are experiencing similar symptoms as those affected by the statewide affordable housing shortage, there are differences for those municipalities.
Ms. Griffin noted that, in Wilmington and Dover, the main distinctions are opportunities for preservation and new development, respectively.
“In Wilmington, there’s a lot of existing development, so there’s a lot of opportunity for preservation and for adaptive reuse,” she said. “In Dover, we don’t see as much of that. We actually have historically seen more homeownership development. … There isn’t a lot of apartment building space, and there is a lot of single-family (spaces), especially if you look in that New Street and Queen Street corridor.
“But there’s a lot of exciting conversation around changing that approach to Dover.”
Such opportunities come on the heels of significant investment in affordable housing initiatives by Gov. John Carney and the General Assembly — to the tune of over $100 million in fiscal year 2024.
Local News
