North Dakota Faces Rising Homelessness Amidst Housing Affordability Crisis
BISMARCK, ND – A growing number of North dakotans are experiencing homelessness as rising housing costs and stagnant wages strain affordability, according to testimony presented to teh interim Human Services Committee this week.The state is grappling with a shortage of affordable rental units, leaving many vulnerable households struggling to secure stable housing.
Data presented at the hearing revealed that of households applying for rent assistance, 48% where temporarily staying with friends or family, while 25% were residing in emergency shelters or transitional housing. A critically important 19% were considered unsheltered at the time of request.
“People tend to forget that the moast affordable rental units are the most competitive,” explained Thomasson to lawmakers. ”That means someone who misses out on an affordable unit may sometimes spend more than they can afford to secure housing.”
The situation is exacerbated by income levels. Jennifer Henderson,director of planning and housing development for the North Dakota Housing Finance Agency,noted federal guidelines reccommend housing costs not exceed 30% of income - a benchmark increasingly difficult to meet. North Dakota currently has over 106,000 households earning less than $23 per hour, categorized as very low to extremely low income, and that number is projected to increase by 2027.
“when you see rents going to $1,100 plus,per month,there are going to be less and less people that are going to be able to afford those rents based on our projections of income,” Henderson stated.She further highlighted that approximately 38% of job openings in North Dakota offer an average starting wage under $20 per hour.
U.S. Census Bureau data shows a disparity between renters and homeowners, with 39% of renter households in North Dakota spending more than 30% of their income on housing, compared to 15% of homeowners.The burden is particularly acute for seniors, with 56% of renter households over age 65 exceeding the 30% threshold.
Senator Kyle Davison, R-Fargo, chair of the interim Human Services Committee, acknowledged the complexity of the issue. “There’s a lot there to unwind,” he said, adding that improving data collection on homelessness is a priority. Davison indicated the committee will focus on developing potential solutions, with a particular emphasis on preventative measures. “trying to be more proactive to prevent homelessness before it occurs could be a better use of taxpayer dollars than building shelters,” he suggested.
The committee will continue to discuss potential solutions at future meetings.