'We have to do more': Why Louisville's affordable housing shortage is getting worse

The affordable housing shortage is getting worse for Louisville's lowest-income residents, despite an increase in available homes, according to a new report released Wednesday.

In fact, the city is now short about 36,000 units affordable to residents with extremely low incomes − an increase of about 5,000 homes since officials last studied the need.

"What stands out to me is that we're making progress in some areas related to affordable housing across Louisville, but not nearly enough progress," Mayor Craig Greenberg said in a call with The Courier Journal. "We have to do more to provide affordable housing options to people across the city."

The new report − an update on Louisville's 2019 Housing Needs Assessment − comes amid Greenberg's push to drastically increase the city's affordable housing stock, promising to build or preserve 15,000 homes within his first term.

According to the update, Louisville saw a net increase of about 53,000 homes across all price points since the first assessment, with the bulk of those homes affordable to households earning up to 50% of the area median income − or $38,450 annually.

However, an increase in the number of extremely low-income households − earning 30% of the area median income − outpaced the increase in homes affordable to that group, leaving a wider gap than before.

"We must always remember that real people − men, women, boys and girls − are at the end of these numbers, and we need to do more," said Christie McCravy, executive director of the Louisville Affordable Housing Trust Fund, which produced the assessments alongside Louisville's Office of Housing and Community Development. "We owe them the opportunity to have affordable housing choice across our entire community."

The updated assessment is based on data from 2021, during the economic turmoil of the COVID-19 pandemic. But Greenberg said he believes it supports the continued need for more investment in affordable housing.

"Having safe, affordable and quality housing is the foundation for every family and every person to thrive in life," he said. "We need to do more to have more housing. If we want to grow as a city, if we want to attract jobs, if we want to retain people here, we need affordable, quality places for people to live."

Here's what to know from the report.

Fewer people are burdened by housing costs

Louisville saw a decline in the rate of households burdened by housing costs − falling 4% between the 2019 and 2024 reports.

However, about 25% of all households remain cost burdened, meaning more than 30% of their incomes go toward housing expenses each month.

About 11% of all households are severely cost burdened, meaning more than 50% of their incomes go toward housing.

Rates of cost-burdened households vary drastically by income group, with lower-income residents struggling the most. According to the 2024 report, nearly 75% of extremely low-income households are cost burdened, including 58% who are severely cost burdened.

"We have to build on the progress that we're making and bring that (cost burden) percentage down much further," Greenberg said at a press conference Wednesday.

Incomes, housing supply shift

Between the 2019 and 2024 reports, Louisville saw a sharp rise in low-income households, while those in the middle income tiers shrank.

According to the new assessment, more than 80,000 households earn 30% of the area median income or below − or up to $23,070 annually. That's a 40% increase from the previous assessment, when about 58,000 households fell in that range.

Meanwhile, Louisville added more than 53,000 homes between assessments, increasing availability across all incomes.

Changes lead to shortage for some, surplus for others

Louisville's increased housing supply has not matched its population demand, however, leading to shortages for some income groups and surpluses for others.

According to the new assessment, there are only enough affordable homes available for 55% of households earning up to 30% of the area median income − a shortage of about 36,000 units.

Meanwhile, Louisville now has a surplus of homes available to households earning between 100% and 150% of the area median income − likely stemming from a decline in population for those groups.

Reach reporter Bailey Loosemore at bloosemore@courier-journal.com, 502-582-4646 or on Twitter @bloosemore.