High housing costs driving poverty in several U.S. states

A study by the Pew Charitable Trusts reveals that housing shortages and high rental costs are significant drivers of poverty across several United States regions. The research, based on data analyzed by University of Oxford professor Zachary Parolin, indicates that in nine states and Washington, D.C., poverty rates would be between 16% and 34% lower if housing costs matched the national average.

Hawaii shows the highest impact, with poverty rates 34% higher than they would be with average housing costs. Other states heavily affected include New Hampshire, California, Colorado, New Jersey, Massachusetts, Maryland, New York, and Connecticut. In Connecticut specifically, above-average housing costs are attributed to 21% of total poverty and 26% of child poverty.

Experts note that high rents are effectively offsetting the benefits of federal assistance programs such as the Supplemental Nutrition Assistance Program (SNAP) and Housing Choice Vouchers. The shortage has created a landlord-dominated market where tenants must compete for scarce inventory, making it difficult for even moderate-income workers to afford basic living expenses.