By: Chelsea Ross, Executive Director, Partnership for Strong Communities
Our homes aren’t just where we live. They shape our access to jobs, education, healthcare, and economic opportunity. A recently released report from McKinsey & Company, Investing in Housing: Unlocking Economic Mobility for Black Families and All Americans, puts into stark relief what many of us already know: the United States is in the midst of a deep housing crisis, one that is disproportionately experienced by Black Americans. The report takes a deep dive, analyzing more than 80 policy ideas and highlighting key solutions that could help close the housing gap and unlock economic opportunity for Americans, particularly Black Americans.
The report cites an 8.2-million-unit housing shortfall nationally, a number that could rise to 9.6 million by 2035 if we don’t take significant action. Mitigating overcrowding alone accounts for 3.7 million units needed, while gaps in vacancy rates, new household formation, and homelessness solutions make up the rest. This shortage “limits opportunities to rent or own and exacerbates long-standing economic inequities”, particularly for Black families, who are more likely to be cost-burdened renters and face systemic barriers to homeownership. The report makes a compelling economic case for action and provides a clear path forward, noting that “closing this housing shortfall could unlock as many as 1.7 million jobs and add nearly $2 trillion to GDP through 2035.”
Here in Connecticut, we’re feeling the squeeze. Too many families are struggling to find affordable, stable housing. Recent census data shows 46% of all renter households in Connecticut face cost burden, with another 25% of homeowners paying more than 30% of their income towards their home. Homelessness is on the rise, growing 13% over the last year alone. McKinsey & Co reinforce the urgency of our work at the Partnership for Strong Communities to ensure affordable, stable, and accessible housing for all. To build a stronger, more equitable future, Connecticut needs bold action to expand affordability, increase housing supply, remove barriers to housing choice, and strengthen protections that keep people stably housed.
Housing Affordability: Expanding Rental Assistance to Meet Growing Need
Solution: Revamp Housing Choice Vouchers
The report confirms what we have long known: housing costs are outpacing wages. “Nearly 60 percent of Black renters and 30 percent of Black homeowners are moderately or severely cost burdened, well above national averages.” Many households in Connecticut face the same affordability challenges, spending too much of their income on housing and struggling to make ends meet.
To address this, we need to expand and improve Connecticut’s Rental Assistance Program (RAP) and invest in direct rental assistance models which have shown promise as a strategy to stabilize families and promote economic mobility. These solutions have been tested and shown to help families stay in their homes while reducing their financial stress. The report highlights the need to expand Housing Choice Vouchers by increasing funding so more eligible households can access stable housing, while also improving landlord participation through incentives and anti-discrimination protections. Additionally, enhancing voucher portability would allow families to move more easily across communities, increasing access to opportunity and better long-term economic outcomes. Read more on best practices in effective long-term tenant based rental assistance programs.
Housing Creation: Building and Preserving More Affordable Homes
Solution: Augment Programs to Unleash Private Capital
One of the biggest takeaways from the report is that we’re simply not building enough housing—and that’s driving up costs. The shortage of affordable homes limits where people can live and work, particularly in communities with strong job markets and good schools. This sentiment was echoed by Jerusalem Demsas, our keynote speaker at the 2024 CT Affordable Housing Conference.
In Connecticut, we need to continue increasing our investment in housing production through programs like FLEX and the Housing Trust Fund (HTF), and target these funds to the production of homes for those with the lowest incomes. Expanding these programs will help create and preserve more affordable housing, ensuring that more Connecticut residents can find homes they can afford. The report also highlights the need to strengthen and modernize the federal Low-Income Housing Tax Credit (LIHTC) by increasing funding allocations, improving incentives for private investment in deeply affordable housing, and streamlining the application and allocation process to ensure that more units are built.
Housing Choice: Removing Barriers to Housing in All Communities
Solution: Unlock Land Through Creative Incentives and Partnerships
The report makes clear that “housing, and where that housing is located, matters a lot”, influencing everything from job access to school quality. Yet, many Connecticut communities continue to enforce exclusionary zoning policies that limit affordable housing options, especially in high-opportunity areas. The authors highlight how Black families are often locked out of these neighborhoods due to exclusionary zoning and restrictive local policies. This isn’t just history—it’s happening now.
That’s why it’s so important to push for zoning reforms that expand housing opportunities across the state. The authors emphasize that increasing “zoning flexibility, particularly for multifamily housing, could significantly expand supply and affordability.” The report details the need to unlock land by reforming restrictive zoning laws, reducing minimum lot sizes, and tapping into underutilized public land for affordable housing development. When we remove these barriers, we create a more inclusive and economically vibrant Connecticut. It also highlights innovative strategies such as transit-oriented development incentives and partnerships between local governments and private developers to create more housing in high-demand areas.
Housing Stability: Preventing Evictions and Homelessness
Solution: Reinvest in Public Housing and Shared-Equity Models
A stable home is the foundation for everything else in life, yet “Black families are more likely to face housing instability, which can disrupt access to employment, education, and healthcare.” Too many families are on the brink of eviction and homelessness. Eviction and displacement create long-term economic hardships that ripple through entire communities. Since March 2020, there have been over 75,000 eviction filings in Connecticut.
We need policies that prevent displacement, like Just Cause Eviction Protections and Right to Counsel for tenants. These measures are proven to keep families in their homes, reducing homelessness and economic hardship. McKinsey’s analysis supports this, noting that “investing in eviction prevention and legal protections can reduce homelessness and long-term housing instability.” The report also emphasizes the need to modernize and expand public housing by increasing funding for repairs, new construction, and mixed-income redevelopment through public-private partnerships. It also highlights the importance of shared-equity models like Community Land Trusts (CLTs) and limited-equity cooperatives, which preserve long-term affordability while allowing residents to build wealth.
The Path Forward
Housing is a national crisis, but we have solutions that can work. “There is no single solution that will solve the U.S. housing crisis, but if many of the solutions outlined in this report were reimagined, tested, and scaled, they could significantly improve the housing experiences of millions of American families.”
Connecticut has an opportunity—and a responsibility—to lead the way by expanding rental assistance, increasing housing supply, reforming restrictive zoning laws, and strengthening tenant protections. At the Partnership, we’re committed to driving these solutions forward together. Your voice, your advocacy, and your support will push policies that ensure everyone—regardless of income or background—has a safe, stable, and affordable place to live.
For more on our policy priorities and how to get involved: visit pschousing.org/policy-and-advocacy.
To dive deeper into the findings and solutions outlined in McKinsey & Company’s report, Investing in Housing: Unlocking Economic Mobility for Black Families and All Americans, you can read the full report here.