Shreveport-Bossier area has second-highest level of cost-burdened renters in state

Shreveport-Bossier area has second-highest level of cost-burdened renters in state

SHREVEPORT - More than half of all renter households in the Shreveport-Bossier area are considered cost-burdened, according to a statewide study by the Center for Business and Economic Research at LSU Shreveport.

The Shreveport-Bossier area, which includes the parishes of Caddo, Bossier, DeSoto and Webster, has 51.3 percent of renter households that are cost-burdened. Only New Orleans-Metairie-Slidell checked in with a higher rate (53.1 percent) with the state as a whole measuring at 45.3 percent. View the complete report at the CBER website.

Cost-burdened renter households are defined as those who spend more than 30 percent of household income on rent.

The study uses data from the 2024 American Community Survey, which is a continuous national survey conducted annual by the U.S. Census Bureau.

"Renters have it tough, and too much of household income is going toward housing costs for renters," said Douglas White, director of the CBER and co-author of the study with Dr. Mary Lois White, dean of the LSUS College of Business. "That's a net negative for the economy because it leaves renters with less cash to spend elsewhere in the economy."

Those numbers climb higher for renters in the low-income to extremely-low income categories.

Shreveport-Bossier's percentage of cost-burdened renters in the extremely-low income (71.5 percent) and very low-income (77.9 percent) fall in line with state numbers, but the area has an abnormally high number of low-income renters (70.1 percent) that are cost-burdened. The state rate for low-income cost-burdened renters came to 44.1 percent.

Income levels are determined by an area's median income (AMI). Extremely-low income households bring in 30 percent or less of AMI, with very low income (between 30-50 percent), low income (50-80 percent), moderate income (80-120 percent) and upper income (120 percent) on the scale.

More than half of Louisiana's cost-burdened renters are considered "extremely cost-burdened," which means more than 50 percent of household income is going toward rent. Across the state, 53.5 percent of cost-burdened renters are extremely cost-burdened.

White said there's a shortage of affordable rental units across the state, which includes the Shreveport-Bossier area.

Shreveport-Bossier has 54 affordable units per 100 renters in the extremely-low income range, something felt across the state with a total shortage of more than 49,000 units for the lowest earners and more than 10,000 units short for very-low income renters.

Those numbers fall even further when the study measures units that are both affordable and available to renters at different income levels.

Only three of 33 categories across the state's 11 areas had sufficient affordable and available rental units, and all three of those were at the low-income level (Baton Rouge, Lake Charles and Opelousas).

"If you look at raw rental numbers in different areas, the numbers look OK," White said. "But when you dig into how many affordable units are actually available in these areas, there's a different picture.

"To me that's part of the reason why overall economic data may look good but why people say they are unhappy."

So why can't more affordable rental units be built?

"Builders will tell you they can't build affordable rental units without assistance because of the costs associated with building," White said. "These structures need to withstand hurricanes, and we also expect a certain level of quality. Inputs like materials and labor are more expensive.

"That raises the price, and there has to be a certain amount of rent collected or return on investment for builders to construct units. Unfortunately, we aren't seeing units that would be affordable for renters in the low-income category or below."

Interest rates on loans and mortgage rates also play a role in higher rent prices as home owners raise rent to cover higher mortgage payments.

Those higher mortgage rates are also delaying home ownership for Americans across the country, which keeps the number of renters elevated, creating upward pressure on rent prices.

"There are also renters who are 'renting down,' which means they are renting units that are below what that could theoretically afford to pay," White said. "There are all sorts of good reasons to rent down - saving for a house or a car for example.

"But with only so many rental units, that negatively affects units that are both affordable and available."

White added that renters are at a further disadvantage because rent prices can be raised every year, while the principal and interest piece of a mortgage payment remains constant.

While many barriers exist to an increase of affordable rental units, White said an increase in the number of people receiving rent assistance could be part of the answer.

"If you increase the number of people who can afford rental units at market rates, then there would be more renters who would be spending just 30 percent or less of their income on housing," White said.

Federal programs like the Housing Choice Voucher (formerly Section 8) and neighborhood grant program do provide rental assistance, but lengthy waiting lists are common because of high demand.