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Building Pathways to Economic Mobility: The Role of Public Benefits

Poverty is more than just a statistic. It is a daily struggle that impacts millions of Americans, shaping futures before they even begin. In Harris County, where poverty rates exceed the national average, nearly one in four children grow up in a household facing extreme financial hardships. And the stress of poverty has far-reaching consequences not just affecting the present but also long-term outcomes in limited educational opportunities, job prospects, and overall health for generations.

Accessing public benefits can play a vital role in bridging the gap between struggle and stability. Programs like the Supplemental Nutrition Assistance Program and housing assistance have lifted millions out of poverty and provide the financial stability required for families to invest in opportunities that improve future outcomes. However, in Harris County alone, it is estimated that $1 billion in government benefit assistance goes unclaimed each year due to a lack of awareness, stigma, and complex application processes, leaving those in need without access.

Connective, a Houston-based nonprofit, is working with partners across Harris County to provide a solution to the underutilization of public benefits by creating a local Public Benefits Hub that serves as a one-stop shop concept designed to simplify the process of accessing public benefits.

Reducing poverty is not just a matter of improving the lives of affected individuals; it has profound benefits for our communities as a whole. When we invest in programs and policies that lift families out of poverty, the rewards echo throughout society. Lower poverty rates are linked to better community health, higher graduation rates, reduced crime, and improved infrastructure—all essential elements for fostering long-term growth and success for everyone.

The scope and impacts of poverty

Across the United States, 1 out of 8 Americans live in poverty. Harris County’s 2023 (most recent data available) poverty rate (16.0%) exceeded the national rate (12.5%), continuing a trend since 1990. Children are more likely to live in poverty, with 23% of children under the age of 18 living below the poverty threshold in Harris County.

Poverty contributes to chronic stress that not only impacts adults but can also have generational impacts on children, who make up the largest group in the U.S. experiencing poverty. Due to extended exposure to hazardous living conditions or extreme financial problems, living in poverty can lead to physical, mental, and financial strain. The oppressive phenomena known as “poverty-related stress” is the result of these everyday stressors.

Children who grow up in poverty are more likely to experience poverty as adults, have higher rates of ill health, lower educational attainment, lower labor force participation due to having less social capital and professional opportunities, and have greater exposures to violence. They are also two to three times more likely to develop mental health conditions.

The impacts of public benefits on poverty

Public benefits—government programs that offer financial assistance to help people meet their basic needs like food, housing, and healthcare—serve as a safety net to millions of Americans who are struggling financially. These benefits including programs like SNAP (Supplemental Nutrition Assistance Program), housing vouchers, or TANF (Temporary Assistance for Needy Families). (See Appendix A for a list of the types of public benefits that exist). One of the first official public benefit programs was the Social Security Act of 1935 which eventually brought millions of older adults out of poverty.

Due to unprecedented economic challenges caused by the COVID-19 pandemic, the United States expanded several public benefit programs in 2020 and 2021 to mitigate financial hardships. During this time, the national poverty rate fell to its lowest level on record, with overall poverty rates declining to 7.8% in 2021 and child poverty dropping to 5.2%, thanks to increased benefits and greater flexibility in assistance programs during the pandemic. However, poverty rates rose in 2022 by 4.6 points up to 12.4% in just a single year due to the termination of pandemic-related assistance.

To put this into perspective, the number of Americans living in poverty increased by more than 15 million between 2021 and 2022 and the number of children more than doubled to 9 million.

To understand the role these expanded government benefits had in reducing the poverty level, we can compare poverty levels before and after people receive government assistance such as unemployment insurance, housing assistance, SNAP, WIC, etc.

Before any taxes or benefits are factored in, the number of people living in poverty across the U.S. increased in 2020 and 2021 compared to 2019. However, taking into consideration government support like the expanded Child Tax Credit and stimulus payments, the number of individuals living in poverty decreased consistently between 2019 and 2021, with over 12.5 million fewer people living in poverty in 2021 compared to 2019.

While public assistance offers notable advantages, it also comes with perceived drawbacks. One common concern is that these programs may act as a disincentive to employment. A key examples is the “benefits cliff”—a situation where an increase in earnings pushes an individual or family above the eligibility for threshold for public benefits. As a result, people may lose access to critical support just when their income rises, even if they continue to struggle financially. This creates a challenge, as some individuals may hesitate to accept job offers or pay raises, knowing that doing so could leave them with less income overall.

This benefits cliff, or gap, doesn’t negate the impact of these programs on providing financial security and reducing poverty but rather highlights how the programs are structured that can create barriers to economic mobility. Issues like inconsistent eligibility rules, benefits that disqualify recipients from other forms of aid due to income threshold, and the lack of a gradual phase-out system rather than a cliff can make it difficult for individuals to transition off assistance without experiencing financial hardship. Recommendations to address the benefits cliff include temporarily extending benefits after income increases, gradually reducing assistance preventing a sudden loss of wages, standardizing eligibility requirements to reduce confusion and unintended loss of benefits, and raising or eliminating asset limits to encourage savings without jeopardizing benefit eligibility.

Public benefits can help stabilize individuals and families by providing basic needs, reducing stress related to unpredictable finances, and reducing the level of poverty they are experiencing. These programs help cost-burdened families move from survival mode to pursuing economic mobility by alleviating immediate financial pressures and avoiding cycles of housing instability and food insecurity. Once stabilized, residents can pursue opportunities—like education, skills training, or steady employment—that can break the cycle of intergenerational poverty and lead to economic mobility. Additionally, studies have shown that access to public benefit programs has several short- and long-term benefits for children and families that contribute to breaking cycles of intergenerational poverty and supporting upward mobility.

Accessing public benefits won’t automatically lead individuals and families to achieve economic mobility. However, these benefits can play a vital role in creating a more stable financial foundation, providing them with opportunities to move towards upward mobility. When people have the support they need to thrive, it not only transforms their own lives but also brings positive change to their communities as a whole.

Billions in public benefits go unused every year

Although the use of public benefits, often called “safety net programs,” has the potential to reduce the poverty rate and improve economic mobility, it is estimated that nationally, $80 billion in public benefits go unused each year and thirteen million people in poverty do not access benefits they may be eligible for.

In Harris County, almost $1 billion in government benefit assistance goes unclaimed each year with more than half a million Harris County residents missing out on benefits they are eligible for.

$1 billion in government benefits goes unclaimed each year in Harris County

Research shows that people are under-enrolled in benefits for three main reasons: lack of awareness of eligibility, social stigma, and the complex and lengthy application processes.

Many individuals are often unaware of the available benefits and lack information on how or where to apply for them. Additionally, public benefits programs are highly complex, administered across federal, state, and local governments with differing income thresholds for eligibility, making the application process and requirements challenging to navigate. Unfortunately, there is a stigma associated with receiving public benefits, and despite their need, individuals may choose not to seek help or apply for benefits because of it.

While applications can be completed online, which may make them appear more accessible, technology can be a barrier for some people, and the process can seem confusing. Additionally, not having transportation to appointments, knowing what paperwork is needed, and contacting organizations that can help with the application process can create other accessibility barriers.

A local solution to help lift Harris County residents out of poverty

Connective, a Houston-based nonprofit and grant partner in Greater Houston Community Foundation’s High-Impact Grantmaking initiative, aims to provide a solution to the underutilization of public benefits in Harris County by creating a local Public Benefits Hub (PBH). The PBH is a tool to assist people in determining what benefits they are eligible for, how to apply for them, and how to keep them. The PBH serves Harris County individuals and families living below the federal poverty line, those facing economic challenges due to low-wage jobs or unemployment, cost-burdened renters at risk of eviction, and individuals considered under-enrolled—that is, not enrolled in all of the benefits for which they may qualify. This initiative seeks to assist people in determining their eligibility for various benefits and enables them to apply for them independently, via a call center, or through an in-person navigator. Additionally, it will provide community-based organizations with tools for coordinated intake, closed-loop referrals, and system-wide data. Currently the PBH is partnering with Chinese Community Center, Catholic Charities, Harris County Public Health, and Wesley Community Center to enroll individuals with plans to add additional partner agencies as the program expands. Connective recognizes the benefits cliff challenge, where higher earnings can trigger a sudden loss of support, discouraging income growth. As the program expands, Connective proposes the addition of benefits navigators, housed at community-based organizations to help families navigate this transition.

The positive impacts of the PBH are far-reaching, including:

  • The creation of a one-stop shop for public benefits that helps stabilize families’ financial circumstances and reduce stress and anxiety associated with financial instability.
  • Helping service providers operate more efficiently, enabling them to serve families more effectively.
  • An increase in successful enrollments due to outreach and simplified access to entitlement and local benefit programs

Expanded access to benefits will provide short- and long-term outcomes to Harris County residents, creating a positive impact on the economic mobility of its residents, and providing systemic change as it relates to the public benefits application process. By 2030, Connective aims to enroll 100,000 new individuals in public benefits, unlocking $225 million each year from the $1 billion in public assistance that goes unclaimed annually in Harris County.

Although Connective’s solution to the underutilization of public benefits is new to the Houston area, the idea is not a new model and has been successfully implemented in other major cities. Benefits Data Trust (BDT), a Philadelphia-based nonprofit founded in 2005, used three strategies to streamline access to benefits: Data-driven outreach to identify low-income individuals, partnerships with government agencies and nonprofits to streamline access, and new technologies to effectively and efficiently assess eligibility. A 2022 profile found that BDT helped over 1 million households in the seven states it served, accessing more than $7.5 billion in public benefits since its inception. While BDT abruptly ceased operations in 2024 due to financial strain, they paved the way to improving access to public benefits.

BenePhilly, the first program launched by BDT in partnership with the City of Philadelphia in 2008, is still operational today using the technology developed by BDT. The program consists of a network of government agencies, nonprofits, and community-based organizations that help connect eligible Philadelphia residents with up to 29 different benefits. This is done using data-driven outreach, referrals from a network of organizations, and in-person and telephone application assistance. A 2022 case study of BenePhilly found that as of January 2021, the program helped more than 125,000 Philadelphia residents secure over $1.6 billion in benefits.

Creating Opportunities for Upward Mobility

Accessing public benefits has a significant impact on reducing poverty and promoting economic mobility. These benefits provide financial stability, allowing individuals to invest in opportunities, like education, skills training, and stable employment, that enhance their chances of upward mobility. The historic decline in poverty during the COVID-19 pandemic demonstrated their effectiveness in reducing the poverty rates, while the increase after these expanded benefits ended highlights their necessity. Concerns like the “benefits cliff” exist, but policy improvements such as a gradual phase-out and standardizing eligibility can address these issues.

Through accessing public benefits alone does not create economic mobility, it is one component of a broader strategy needed to break cycles of intergenerational poverty and create economic mobility. Certainly, for the children living in very low-income families, public benefits can reduce hunger, housing instability, and toxic stress that undermines a child’s ability to learn and thrive. Still, long-term answers lie in investing in fundamental building blocks of economic mobility—ensuring access to affordable care and learning environments for children, high-quality education and workforce training, stable employment that pays a living wage, affordable housing in supportive neighborhoods, and accessible health care.

Support Connective’s Public Benefits Hub and help advance upward mobility for Houston-area residents. Sign up for Connective’s newsletter or donate today—you can make a lasting impact!

Appendix A: Types of Public Benefits

The selection process for the High-Impact Grantmaking initiative incorporated a robust multi-level review process designed to ensure maximum fairness, transparency, and comprehensiveness in evaluating all submissions. The outcome of this process reflects the recommendations made by an independent Community Grants Advisory Committee. The recommendations put forth by the Committee were closely reviewed and approved by the Foundation’s Community Impact Committee and its Governing Board.

Economic Paradox: Booming Growth, Struggling Families

Houston is often celebrated for its booming economy, which has created numerous opportunities for many residents. With a Gross Domestic Product (GDP) that consistently ranks among the best in the nation and a thriving small business sector, it’s easy to see why many are optimistic about their future here.

At the same time, over 313,000 Houston-area households live below the poverty line, and an additional 713,000 cannot afford their basic needs despite working full-time. That is nearly half of all households in the Houston region that are financially struggling or in crisis.

Even more concerning is that while many Houstonians have access to a credit card, a significant portion—about a quarter—use non-traditional pathways to access money, like payday loans or check-cashing establishments. Additionally, many others have subprime credit scores (below 660). These households are the ones most likely to have little to no extra cash, forcing them to rely on credit to cover emergency expenses. For people with subprime credit, accessing credit comes with exceedingly high interest rates making borrowing more expensive. High interest rates make people more likely to fall behind on payments and have debt go into collections, making their ability to secure quality, low interest credit in the future even less likely. This is the cycle of debt that burdens so many of our neighbors and makes it harder to stabilize and experience upward mobility.

Houston’s economy remains strong

The Houston region is home to one of the most vibrant economic engines in the country. Metro Houston’s GDP, at $550 billion in 2023, places us seventh highest in the country and accounts for 26% of the GDP for the entire state of Texas.

Metro Houston’s GDP is roughly the same size as the entire country of Ireland.

Additionally, job growth in our region, an important measure of economic expansion and the overall strength of the job market, continues to outpace the state and the nation, particularly in Fort Bend and Montgomery counties.

In 2022, the job market experienced a resurgence, bouncing back from the significant job losses felt during the COVID-19 pandemic in 2020. In Fort Bend County, job growth soared by an impressive 13% in 2022, while Montgomery County saw a healthy increase of 7%, and Harris County added 4% compared to the previous year.

Between 2021 and 2022, the combined growth across Fort Bend, Harris, and Montgomery counties led to the creation of nearly 130,000 new jobs—historically, the entire nine-county Houston metro area usually gains about 65,000 to 70,000 jobs annually.

Taking a broader view, looking at the period from 2010 to 2023, it’s clear that the job growth in our local counties has far outpaced national trends. Fort Bend County’s job market expanded by 88%, Montgomery County’s by 77%, and Harris County’s by 21%. In comparison, the national job growth during the same time frame was just 19%. This solid growth underscores the resilience and dynamism of our local economy.

Small businesses (defined as businesses with fewer than 10 employees) continue to be a driving force behind our strong economy. The number of small businesses grew by 22% in Harris County, 62% in Montgomery County, and 101% in Fort Bend County between 2010 and 2022, far outpacing the nation (12%).

The growth of jobs and small businesses in Houston continues to outpace the nation.

Additionally, across the Houston Metro Area, 39% of small businesses are owned solely by people of color compared to 21% across the nation, with Asian Americans, in particular, demonstrating a strong entrepreneurial presence—they own 22% of small businesses in the region but comprise 8% of the population.

In 2020, small businesses in our region were slightly more likely to be owned by women (25%) compared to the state (23%) and the nation (22%). However, between 2020 and 2021, the percentage of women-owned small businesses in Houston decreased by 8 percentage points to 17% in 2021 from 25% in 2020, suggesting the pandemic had a disproportionate effect on women-owned small businesses.

Overall, the Houston region continues to have a strong economy and is a place of business opportunity and growth.

Despite a thriving economy, not everyone benefits

However, Houston’s vibrant economy masks a stark truth: 44% of households can’t make ends meet, and about half of total income goes to the top 20% of households. In comparison, the bottom 20% holds 3-4% of total income. This highlights a significant opportunity to bridge the gap and support our neighbors facing economic difficulties.

As of 2023, the poverty rate in Fort Bend and Montgomery counties has consistently been lower than the state and the nation at 9% and 11% respectively. In contrast, the poverty rate in Harris County has consistently been higher at 16%. While the rate of individuals living in poverty has decreased since 2010, the number living in poverty has increased with now more than 900,000 Houstonians living below the poverty line.

More than 900,000 individuals in the Houston three-county region live below the poverty line.

While the poverty rate, with its limitations (i.e., outdated formula, does not adjust for regional cost-of-living differences, excludes essential needs like housing and healthcare, excludes non-traditional households, etc.), is not a perfect measure of economic hardship, it remains a useful indicator when considered alongside other metrics. Tracking the poverty rate over time helps us assess whether economic growth is broadly shared or disproportionately benefits some while leaving others behind.

Due to its limitations, the poverty rate underestimates how much money people actually need to get by today compared to past decades. For reference, in 2024, the poverty threshold was $16,230 for an individual and $32,355 for a family of four. Indicators that take into consideration more realistic costs of living paint a much more troubling picture of how many of our neighbors are really struggling to meet their basic needs.

The acronym ALICE stands for Asset Limited, Income Constrained, and Employed and represents families that are working but unable to afford basic necessities like housing, food, childcare, health care, and transportation. ALICE income thresholds include a more realistic cost of living than federal poverty thresholds. To put things into perspective, the Texas cost-of-living in 2022 was $26,268 for a single adult and $72,816 for a family of four.

On top of the 13% of households in the three-county region considered to be living below the poverty threshold, there are an additional 31% of households not considered to be living in poverty but are considered ALICE, higher than the state and national rates of 29%. And while the rates of ALICE households in our region have mostly stagnated over the past decade, the number of ALICE households has increased nearly 50% since 2010. This means that, in our region, there are 313,000 households living in poverty and an additional 713,000 households considered ALICE. In total, that’s over 1 million households—44% of all households—struggle to afford basic necessities and are at risk of increased hardship if an unexpected expense arises.

1 million households (44%) do not have enough income to cover their basic needs.

Access to credit can be a lifeline for many

When emergency expenses such as a sudden medical need, a vehicle breaking down, or lost groceries due to a power outage arise, the ability to access credit can be a lifeline if savings are insufficient. Which is the case for many Houstonians. According to the 2024 Kinder Houston Area Survey, nearly half of residents in Harris County couldn’t come up with $400 to cover an emergency expense. But an analysis by JPMorgan Chase Institute found that 43% of low-income households who could not afford an unexpected $400 emergency would have been able to do so if they had additional access to credit, specifically short-term credit which is often accessed in the form of a credit card.

In the Houston region, credit card access is widespread with three quarters of residents holding a credit card. This represents a significant increase of nearly 20 percentage points in less than a decade, rising from below state and national averages in 2015 to surpass the Texas average and nearly match the U.S. overall by 2023.

Three quarters of Houston residents have access to a credit card.

However, having access to credit does not mean it is quality credit. Being able to access quality credit typically requires having a high credit score. Credit scores range from 300 to 850, with higher scores indicating “better creditworthiness.” A good credit score can help individuals secure better interest rates. Conversely, a low credit score, or subprime credit, can make it not only difficult to obtain credit but can also result in higher interest rates, making borrowing more expensive.

While the rate of residents with subprime credit (i.e., below 660) in our region has decreased over the years, about a quarter of residents in our region still have a low credit score.

Across all three counties, the rate of residents with a subprime credit score decreased by 5-6 percentage points between 2015 and 2023. However, Harris County still has nearly 1 in 3 residents with subprime credit, and Fort Bend and Montgomery counties have 1 in 4 residents with subprime credit.

For every 3 residents in Harris County, 1 has subprime credit.

This matters because people with low credit scores are more likely to be denied credit cards and loans from traditional banks, leaving them to pursue credit through non-traditional sources (e.g., check-cashing services, pawn shop loans, auto title loans, and paycheck advances/payday loans). While three quarters of our region’s residents have access to credit in the form of a credit card, a quarter of residents are considered unbanked or underbanked. Unbanked individuals are those who rely on those non-traditional sources of credit because they are not in the formal credit economy. Underbanked individuals are those who have a checking or savings account with a bank or credit union but also use alternative financial services to manage their finances.

While the rate of unbanked households in our region was improving, recently it has begun to tick back up and remains well above the national rate.

Between 2017 and 2021, the percentage of unbanked households declined across the nation, state, and Houston metro. However, as of 2023, this rate has increased in Houston and across Texas. The Houston metro area’s share of unbanked households is more than twice that of the nation and slightly above Texas.

So even though additional access to credit could potentially help many in our region combat an unexpected financial emergency, for at least a quarter in our region who have subprime credit and/or are underbanked or unbanked, additional credit access could lead to high interest rates and exploitative repayment plans that can trap users in a cycle of debt. According to Financial Health Network, in 2022, Americans spent $303 billion on interest and fees for everyday financial services. Of that total, $225 billion, or 84%, of that was paid by financially coping and vulnerable households. These households struggle with debt, lack savings, struggle to pay bills, and often rely on high-cost borrowing options.

Using credit to cover essential needs can lead to unproductive debt and debt in collections

Having debt is not inherently negative. Debt can be a tool for investing in opportunities that may yield benefits in the future, like buying homes, starting businesses, and paying for high-quality education or in-demand skills training. All of these things have been identified as good investments that can increase one’s economic opportunity and mobility.

However, unproductive debt is debt incurred to pay for basic needs and living expenses. Because it does not have the same long-term benefits, unproductive debt is riskier for the debt holder and society at large.

Overreliance and dependence on credit can lead to unmanageable debt, making it harder to pay bills in full and on time. When payments are missed, individuals face penalties and late fees which can lower credit scores and raise interest rates. This could result in borrowers losing assets like cars and homes and/or debt going into collections. Debt goes into collections when the original creditor cannot collect payment on the debt, so they either sell or transfer the debt to a collections agency that tries to recover the money. Consequently, it becomes harder and more expensive to access credit.

Mounting debt sets into motion a cycle wherein individuals must use their earnings to pay overdue bills and interest, which leaves little funds for current expenses or future savings. Once begun, it is difficult to break out of this cycle of debt.

The good news is that the percentage of individuals in the Houston region (with credit history) with debt in collections has been in decline since 2017. However, despite improvements, this rate is consistently higher across Texas compared to the nation. As of 2023, the share of people with debt in collections is still 10 percentage points higher in Texas (32%) than in the U.S. (22%). Additionally, Texas—along with Louisiana, South Carolina, and Georgia—has the highest percentage of people with debt in collections in the nation. This finding is even more striking since Texas is the second-most populous state. In Harris County, 34% of residents have debt in collections, the highest level in Houston’s three-county region. About 22% of people in Fort Bend County and 25% in Montgomery County also have debt in collections, which are closer to the national average.

1 in 3 Harris County residents with credit history have debt in collections.

Creating a more financially resilient community

Houston’s strong economy provides the foundation for economic opportunity for residents, but we must identify levers to ensure all can build on that foundation. With over one million financially insecure households, and income growth lagging behind both state and national trends, we face real challenges. This is compounded by a significant portion of our community being unbanked or underbanked, along with a substantial percentage possessing subprime credit scores that contribute to a cycle of debt and financial insecurity.

An evaluation of two client-centered financial coaching programs, which focus on the goals set by participants, shows limited results, but promising signs of increased savings, on-time bill payments, and a reduction in certain types of debt. A review of other research suggests that the impact of financial coaching is promising but remains inconclusive due to challenges such as inconsistent practices and outcome measures. It is important to note that financial coaching differs from financial education. Financial education focuses on general financial literacy while coaching provides personalized guidance to help individuals achieve their financial goals. It is recommended that financial education should complement, not replace, financial coaching.

Family Self-Sufficiency (FSS) programs are also making an impact in bolstering the savings of individuals and families. These government-supported initiatives, often run by local housing authorities in partnership with nonprofits, pair residents of public housing with financial coaching, skills training, and supportive services. As participants earn more, the pay increased rent with an amount equivalent to this increase being placed in an escrow savings account. The participants will receive the full balance of this account once they complete the program. A quasi-experimental study of an FSS program found that program participants’ annual household income was 21% higher compared to the comparison group one to three years after enrolling in the program and 23% higher five years after enrollment. Additionally, the research suggests that program participants had less reliance on public assistance programs than the comparison group.

Alongside access to quality living-wage jobs and a supportive small business ecosystem, strengthening savings, improving credit history, and gaining access to quality credit in the traditional credit economy are crucial steps toward a brighter financial future for Houston’s financially insecure households. Together, these efforts can help individuals and families in our region, enhancing their financial resilience to better withstand setbacks, build long-term stability, and access opportunities for future growth.

Who can afford to live in Houston?

Houston has long been celebrated for its affordability, attracting individuals and families seeking economic opportunities and a reasonable cost of living. Indeed, according to the Greater Houston Partnership, the Houston Metropolitan Area has the third-lowest living costs among the 20 most populous U.S. metropolitan areas.

However, data reveals a growing housing affordability crisis that challenges this perception. As of 2023, approximately 830,000 households in Houston’s three-county region—Harris, Fort Bend, and Montgomery—are in living situations where their housing is not considered affordable.

This troubling statistic raises critical questions: When one out of three households are burdened by housing costs, who can afford to live in Houston today?

Why is access to affordable housing essential?

Housing is universally recognized as a basic human need essential for health, stability, and well-being. Research shows that housing affordability impacts broader economic mobility, with cost-burdened households—those spending more than 30% of their income on housing— having less capacity to invest in education, healthcare, or savings. According to a report from the National Low Income Housing Coalition, over 8.1 million extremely low-income renter households in the U.S. are severely housing-cost burdened, spending more than 50% of their income on rent, which compromises their ability to cover other critical expenses. Furthermore, stable and affordable housing can significantly reduce stress and improve mental health outcomes, particularly for children and adolescents.

So how many people in our region can actually afford to live here, and what is driving this level of unaffordability?

Households are increasingly burdened by housing costs, especially renters.

The rate of households that are cost-burdened is a critical indicator of a location’s affordability, offering insights into how well housing costs align with residents’ incomes. A household is considered cost burdened if it spends more than 30% of its income on housing. A high percentage of cost-burdened households suggest that housing costs are disproportionately high relative to income, indicating a lack of affordable housing options.

The rate of housing-cost burdened households in our region is higher than it has been for at least the last decade, with renters disproportionately impacted.

In 2023, over half (52%) of renters in the three-county region—Fort Bend, Harris, and Montgomery counties—were housing cost burdened. For comparison, 24% of homeowners in the three-county region are housing cost burdened. The percentage of cost-burdened renters has increased by four points since 2010, compared to a decline of four points for homeowners. Among the three counties, Fort Bend currently has the highest rate of housing cost burdened renters in the region at 57%, up 14 percentage points from 2010.

Households that are severely cost burdened spend 50% or more of their income on housing. Households where rent accounts for half of total income are more likely than others to sacrifice necessities like utilities,  fresh nutritious food, and health care to pay the rent and they are more likely to experience unstable housing situations and evictions. These are the most vulnerable among vulnerable households, and housing costs for this group have only become more burdensome.

Renters are also far more likely to experience severe housing cost burdens with 27% of Houston-area renters spending over 50% of their income on housing compared to just 11% of homeowners. As of 2023, over 30% of Fort Bend County renters spend at least half their income on housing—this is eight percentage points higher than two years prior in 2021. These statistics represent the 830,000 households in the Houston three-county region that are housing-cost burdened—400,000 of which are severely housing-cost burdened.

The affordability issue is even more pronounced for lower-income households which face much tighter budgets— meaning, if their limited income is consumed by housing costs, there are significantly fewer resources to cover other basic needs which increases the risk of debt, eviction, and financial instability.

In the three-county Houston region, 77% of very low-income households (i.e., less than or equal to 30% of HUD Area Median Family Income–HAMFI) are burdened by housing costs compared to 6% of median-income households. We see the same pattern among households that are severely cost burdened with two out of three extremely low-income households spending at least 50% of their income on housing compared to less than 1% of median-income households.

Rents are increasing while incomes are stagnating.

To understand one factor contributing to the rise of cost-burdened households in our region, we can examine the relationship between rising housing costs and stagnant income growth. When housing costs outpace inflation-adjusted income growth, residents face increased financial strain, often leading to higher rates of cost burdened households. By analyzing this relationship, we can gain critical insights into local affordability.

In Fort Bend and Montgomery counties, median household incomes between 2010 and 2023 were stagnant and increased by 3% in Harris County. However, incomes increased 11% across the state of Texas and 12% nationally. The Houston area’s sluggish income growth underscores a widening gap as rents continue to climb leaving many households struggling to keep up.

Median gross rents in Houston’s three-county region have risen significantly since 2010, outpacing income growth. Fort Bend County has the highest median rent at $1,839, a 21% increase since 2010. Median rent increased 28% in Montgomery County—the highest in the region—and 20% in Harris County during the same period. Conversely, median monthly costs for homeowners either decreased or remained flat in all regions.

Median monthly housing costs for a homeowner in Houston’s three-county region was lower in 2023 than it was in 2010. Median monthly housing costs for homeowners decreased between 2010 and 2023 by 10% in Fort Bend County, 12% in Harris County, and remained flat in Montgomery County.

Homeownership is becoming increasingly out of reach for many.

Homeownership, often viewed as a cornerstone of the American Dream, is becoming increasingly out of reach for many first-time homebuyers and owning a home can be particularly critical to wealth creation and upward mobility, especially for most low-income and non-white households since that wealth can be passed to future generations. According to the Federal Reserve, in 2022 the median net worth among homeowners across the U.S. was $396,200 and $10,400 for renters.

Historically, most households in all three counties owned their home with Fort Bend and Montgomery counties having the highest rates of homeownership at 77% and 69%, respectively, compared to Harris County at 55%. However, recent trends point towards a decrease in homeownership.

Between 2010 and 2019, homeownership rates declined across all three counties in the Houston region. In 2021, this trend reversed briefly, spurred by historically low interest rates and a rising wave of individuals relocating from urban, high-cost areas. However, by 2023, this momentum stalled in most areas with homeownership rates either decreasing or remaining flat compared to 2010 levels. Homeownership rates in Montgomery County declined five percentage points between 2021 and 2023 alone.

Overall, between 2010 and 2023, the number of households that rent increased faster than households that own, which contributed to the decline in overall homeownership rates over the last decade. Between 2010 and 2023, renter-occupied households increased by 71% in Fort Bend, 25% in Harris, and 93% in Montgomery counties while owner-occupied housing increased by 63% in Fort Bend County, 24% in Harris County, and 51% in Montgomery County.

The vanishing dream of affordability in Houston.

Houston has long been a symbol of opportunity, offering affordable living and pathways to homeownership. However, this reputation is being challenged.

Despite most Harris County residents viewing homeownership as both a critical milestone and a key to building wealth, our region is trending toward a majority-renter population, likely due to homeownership becoming increasingly unaffordable for many. The financial burden on renters has reached unprecedented levels, with over half spending more than 30% of their income on housing and over a quarter exceeding 50%. Stagnant wages coupled with escalating rents have created an unsustainable environment where many households are forced to sacrifice essential needs like health care, education, and savings just to keep a roof over their heads. For low-income renters, this often means a constant struggle to avoid eviction or homelessness.

Houston’s reputation for affordability is increasingly at odds with the realities of its housing market. As the gap between incomes and housing costs continues to widen, homeownership has become a pipe dream for many and renting, a seemingly reasonable alternative to homeownership, has become increasingly unsustainable for countless households.

Doing what matters by measuring what matters

Greater Houston Community Foundation (Foundation) launched Understanding Houston in November 2019, marking nearly five years of insights into our region. The last five years have been quite a journey, and many of you have been along for the ride, and we are grateful for our partners and supporters who have supported us throughout this endeavor.

Measuring what matters to do what matters

Using the data from Understanding Houston, we have learned a lot together about Houston’s three-county region.

  • We know more needs to be done to build trust amongst residents and boost civic engagement in our region. Less than half of Harris County residents think “Most People Can Be Trusted,” and while voter turnout hit record numbers in the 2020 presidential election, our region and state still lag U.S. voter participation rates.
  • Our diversity is a point of pride with Fort Bend County’s demographic composition being just about evenly split among the four largest racial/ethnic categories, but we still see disparities across income, home ownership, educational attainment, and health.
  • Houstonians are struggling. Renters are increasingly burdened by the rising cost of housing, incomes have stagnated, and more than 1 out of 3 households in the region is not able to afford their basic needs despite working full-time.

We have shared this type of data — and more — far and wide. Over 150,000 users have visited the understandinghouston.org website and we’ve provided data briefings to over 3,700 individuals. But Understanding Houston was never meant to be only about collecting data and learning. The purpose was always meant to inform action by measuring what matters to do what matters.

Our First Three Years

Start-Up

Year 1

Engage

Year 2

Catalyze

Year 3

Build new tools
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Engage community leaders across three counties to inform the project

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Aggregate credible data and build the website

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Launch November 21, 2019

Build capacity and convene
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Host educational opportunities across sectors

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Offer nonprofit partners data capacity building

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Convene to identify key focus issues for collaborative action

Take action and iterate
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Deepen learning through community engagement and discussion on focus issues

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Develop and begin executing on key actions

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Update website and reflect

Community Impact Fund

How did we evolve from Understanding Houston, a data indicators project, to action? Greater Houston Community Foundation’s Community Impact Fund. The Community Impact Fund will be a catalytic force for philanthropic impact – making a meaningful difference in the lives of Houstonians through three pillars of work that speak to data, collaboration, and lasting impact.

Understanding Houston was the first initiative that started and shaped the Foundation’s Community Impact work. By grounding ourselves in our region’s strengths and challenges through the data and community engagements, we were able to make decisions around how we should deepen our impact and show up for Houston.

This learning journey, expedited by a global pandemic and a grueling winter storm shortly after, prompted the Foundation to proactively step into a space we had already been leading in reactively. The Greater Houston Disaster Alliance officially launched May 2023 in partnership with United Way of Greater Houston and city and county leadership. This initiative allows us to strengthen our role as philanthropic first responders to support disaster recovery and partner in new ways to increase our region’s resiliency in between times of disaster.

Finally, our newest initiative, High-Impact Grantmaking where we partner with community to leverage collaborative, catalytic grantmaking to improve economic mobility for our neighbors. Through Understanding Houston data trends and engaging over a hundred community leaders, we solidified economic mobility as a priority and a paramount concern for Houston. Dive into our journey from going to 200+ indicators to one issue area of focus.

Engage in the Journey

If you want to stay informed on all our Community Impact initiatives, subscribe to the new, quarterly Insider Update newsletter. For all our data lovers out there, do not worry — while the Understanding Houston newsletter will be switching to a quarterly cadence, it isn’t going anywhere. We will continue to share data insights and trends, articles that dive into relevant and complex issues, and other resources for further learning.

So please stay with us on this evolving journey as we transition from “Measuring what matters to do what matters” to “Doing what matters by measuring what matters,” because the ride isn’t over!

As always, we would love to hear from you — please share feedback, suggestions, and success stories here.

Fifth Ward Builds a New Library to Fight Illiteracy

I’ve been the Pastor of Olivet Baptist Church, located in the Fifth Ward since 2004. Approximately 10 years ago, our church formed a nonprofit, Olevia Community Development Corporation, to take an active role in our community by developing people, property and resources within the Fifth Ward, a consistently under-resourced minority community since its beginning in 1866.

“A Silent Crisis”

In September of 2019, Houston Mayor Sylvester Turner launched the first ever Mayor’s Office for Adult Literacy. Director Federico Salas-Isnardi quickly set about employing a two-year study in partnership with the Barbara Bush Houston Literacy Foundation focusing on adult literacy, known as Houston’s Adult Literacy Blueprint, published in 2021.

What the study found was a “silent crisis”: 32% of Harris County adults are functionally illiterate, meaning more than one in every three residents do not have the literacy skills they need “to successfully perform their role on the job, in their family, or in society.” The study’s conclusion: Houston needs to act strategically and proactively to address the pervasive, multifaceted, complex nature of low levels of adult literacy.

Greater Houston’s population of more than 6.2 million is among the most diverse in the country, with a quarter of residents born outside of the U.S. and 145 spoken languages here. In Harris County – there is no racial/ethnic majority – though 44% percent identify as Latino, 19% percent as Black, and 7% as Asian American. Our region’s diversity is a strength — one that brings together different experiences, perspectives, and ideas.

However, we also have challenges. Consider the finding that Black and Latino adults in Harris County are 3 times more likely than white adults to have low literacy skills,1 and that 94% of adult learners in Harris County are individuals from nondominant groups, with the vast majority (greater than 85%) being Black or Latino.2 This report found that the issues of illiteracy are rooted in underlying social conditions which go unnoticed in our collective consciousness.

Why illiteracy matters

The economic disparities in neighborhoods of color in Houston directly relate to overall educational attainment and literacy, by extension. In particular, poverty is closely intertwined with illiteracy. According to one national study, 43% of adults with the lowest literacy skills live in poverty, compared to 4% of those with the highest literacy skills.3

In Fifth Ward, the median income is $38,000 (less than half the state average), 37% live below the poverty line, and 32% of adults have not completed high school. For comparison, about 17% of adults in Harris County have not completed high school and 15% live in poverty.

What the study points out — and what we know from living, working, and ministering in the Fifth Ward — is that children of parents without a high school diploma have a much higher likelihood of also not finishing high school, which establishes a recurring pattern, often spanning multiple generations. With more than one million functionally illiterate adults in Harris County, the implications are dire.

In fact, low literacy rates challenge the well-being and prosperity of families across our region and prevents many adults from reaching their fullest potential in life and the pursuit of the American Dream. When fewer of us do well, that threatens our region’s overall economy and social vitality. The literacy report found that Harris County’s economy could grow by $13 billion if adults with the lowest level of literacy increased their skills just by one level – that translates to a 3.3% increase in GDP. Further, research has shown that adults with low literacy tend to have worse outcomes in health, job opportunities, and economic stability. If low literacy rates in our region continue, we will not have the skilled workforce we need to support tomorrow’s economy, which could negatively impact our region’s growth and prosperity.

Libraries as one tool in the fight

Libraries are champions in the fight against illiteracy as they tend to offer a diverse range of approaches for both children and adults, are generally accessible in neighborhoods, and are free to all. One of the many solutions to tackling adult literacy is to fund more robustly community library programming. This literacy programming should include classes in ESL, workforce development and training, financial literacy, health literacy, and digital literacy. As Edward Melton, Director of the Harris Co. Library System, shared with us recently, “You can’t just build a library and believe people will come. You must have literacy programming dedicated to the needs of the immediate community.”

Recently, we at the Olevia CDC have been working on the development of a library in the Fifth Ward as none exists for the 17,000 people who live in this neighborhood directly adjacent to and northeast of downtown Houston. The City of Houston Library in the Fifth Ward was located next to the Fifth Ward Multi-Service Center, but it received extensive damage from Hurricane Harvey in 2017 and has been closed since.

This void has left the community without a valuable and needed resource for its citizens both young and seasoned for the past six and a half years. That means the following services are not being provided for Fifth Ward residents: programs and events such as story time for children, book clubs, and author talks. Along with missing traditional library services, neighborhood libraries also offer unique resources such as free access to online learning platforms, free tax preparation for seniors, access to free legal aid, health fairs and screenings, food giveaways, and so much more.

In addition to providing basic services, the Olevia CDC’s library project is primed to be a destination space for the community and the neighborhood as it will utilize a historic building to create an innovative reading space. We partnered with the University of Houston Gerald Hines College of Architecture and the Design Build Master’s Classes to complete a structure that will fit within an existing unused donated structure.

While books and literacy are paramount, we also plan to provide e-books via mobile devices, establish a community garden, host indoor and outdoor performances, an onsite coffee shop, spaces to hold community events, such as weddings, birthday parties, author book signings, Houston sport and entertainer celebrity reading literacy nights, corporate sponsored literacy events and much, much more. We intend for literacy and fun to be interconnected and highlight the true benefits of literacy.

Join the fight

As the Houston community begins to address this silent literacy crisis, it is clear from the Literacy Blueprint report that investing just $2,200 per year in adult education “can raise an adult learner up two grade levels.” By improving adult literacy rates through education and skills training, a greater number of Houston’s most marginalized, including those in the Fifth Ward, will be able to advance economically, support their families, and play a positive role in our society.

There are many ways to join the fight against illiteracy in our region. I encourage you to see how you can get involved in your local library system — such as Harris County’s or Houston’s — to read to children or tutor. You can also join the literacy movement or volunteer in some other capacity. To learn more about our efforts in the Fifth Ward, including our efforts to build a new library, please visit us at Olevia Community Development Corporation.

End Notes

1 Program for the International Assessment of Adult Competencies (2017)
2 Houston-Galveston Area Council (2021)
3 Kirsch, I., et al., Adult Literacy in America: A First Look at the Results of the National Adult Literacy Survey. (Washington, D.C.: Office of Educational Research and Improvement, U.S. Dept. of Education, 2022) 61.

5 Improvements to Understanding Houston

Since its launch in 2019, we have been asking how we can improve Understanding Houston — not only the site, but also the overall initiative: How can the site be easier to navigate? How can the site help you quickly find what you are looking for? How can our events be more engaging or useful? What else do you want to see from Understanding Houston?

In search of answers, we conducted three Data Dives, two Visioning Labs, dozens of post-event evaluations, hundreds of conversations, and a biennial survey.

Through this discovery, we heard that the site was not intuitive to navigate; few people were aware of our blog page; the site was not fully accessible; and users wanted more background and context with which to interpret the data but also fewer indicators. (We also heard that Understanding Houston presents data in compelling, interactive visuals; provides analysis in clear, accessible language, and is aesthetically pleasing.)

Throughout 2023 we have been working with our incredible partner, Baal & Spots, to build and enhance UnderstandingHouston.org, and we are thrilled to finally reveal the refreshed website!

Here are five ways Understanding Houston has improved, informed by your feedback and suggestions.

1. Popups and Navigation

Each time you open Understanding Houston in a new browser, little popups will take you on a quick tour of the homepage (if you do not want to see them again, select the appropriate box). The popups will guide you through the homepage, the new navigation, the new “Explore the Data” button, the blog page, and more.

Additionally, the navigation headers have been renamed and reordered for clarity. The “Explore the Data” button now appears first. We have also made it easier to learn who we are, what we do, and how to get involved by registering for events or subscribing to the newsletter. Finally, the blog page is now called “Articles & Reports,” the search bar is more prominent, and it is easier to find information on upcoming and past events, including presentations and photos through drop-down menus.

2. Explore the Data

We are proud to host a new Explore the Data page that presents all topics and subtopics in one place for convenience. From this page, simply click on the  cover photo or topic name to visit one of the nine topic-level pages and read the summary report. Users can also view all subtopics to directly find what you are looking for or to get a sense of how the data are organized. In this update, we refined the 300+ indicators to about 200 based on feedback and use and combined and refined subtopic pages — the result of which can be seen in this one high-level page.

3. Enhanced Blog

The blog page formerly known as “Community Voices” has been renamed “Articles & Reports.” The articles can be filtered by one of the nine topics by selecting the issue in the drop-down menu. With over 80 articles to choose from, we know there is a lot to explore. To help focus, the top five most read articles will appear in a carousel format, with all articles in reverse chronological order below, denoted by the “Most Recent” header. Scroll down the page to load more articles or use the search tool in the upper right corner to find one you are looking for.

4. Improved Accessibility

We are proud to share that Understanding Houston is more accessible now. We have tweaked our color combinations and fonts to ensure that all users can fully enjoy and utilize the website. Screen readers can read each page’s content, including charts, and we are working to complete adding alt text to all relevant images.

5. More background, context and analysis

You asked for more historical background, situational context, and deeper analysis from Understanding Houston, and we aimed to deliver! Throughout the site you will find deeper dives and more holistic analysis of outcomes across indicator, and we disaggregated more data by race/ethnicity, gender, and income where possible. For example, we took a deep dive into the racial characteristics of poverty, analyzed housing cost trends before and after the pandemic, dissected disparate outcomes in maternal and child health, and more.

Approaching our Fifth Anniversary

We have made significant updates to the website, but many parts of the site you love have not changed. You have always been able to interact with the charts on the website and download them for use. Users can still change views by filtering the data in the legend or selecting different buttons or drop-downs in the top right corners. And, you can still jump to the indicator of interest by selecting it under “The Data” header on the left of each subtopic page.

As we move toward our fifth anniversary in November 2024, we will continue to improve, following your suggestions and input. Understanding Houston’s second biennial Impact Survey is now live! We encourage all users and visitors to complete the 10-minute survey for a chance to win a $1,000 donation to your favorite  local nonprofit. We will continue to update the site with the most recent data and to convey the initiative’s next phase of work.

Once again, we extend our deepest gratitude to and appreciation for Baal & Spots who has been an incredibly talented and supportive partner to us since Understanding Houston’s inception.

Happy Exploring!

Honoring Veterans: Shaping Our Future by Remembering Our Heroes

Every November 11th, cities, towns, and communities across our country come together to pay tribute to the brave men and women who have served in the armed forces. Veterans Day is a solemn occasion, a day when we pause to reflect on the sacrifices made by our military personnel and express our gratitude for their unwavering dedication to protecting our freedoms.

At its core, Veterans Day is a reminder of the profound debt of gratitude we owe to those who have served in our country’s defense. It’s a day to acknowledge the immense sacrifices that veterans have made for the greater good. These sacrifices extend far beyond the battlefields; they encompass time spent away from loved ones, physical and mental challenges, and the burden of carrying the responsibility for the nation’s security.

The essence of Veterans Day

One of the most important aspects of Veterans Day is the opportunity it provides for Americans to connect with veterans and gain a deeper understanding of their experiences. Through conversations, events, and ceremonies, Americans can hear firsthand accounts of the challenges veterans faced and the resilience displayed in the vein of defending the greatest country in the world. These stories remind us that freedom is not free; it has been safeguarded through the courage and valor of our veterans.

Nearly 220,000 veterans live in Houston’s three-county region. About 7% of Montgomery County’ population are veterans — the largest proportion of veterans in the region, compared to 4% in Fort Bend and Harris counties. On average, men, Black, and white people are most likely to be veterans.

Veterans Day also serves as a reminder that even after a soldier, marine or airman takes off the uniform there are a litany of ongoing challenges that veterans may encounter upon returning to civilian life. Transitioning from military service to civilian life can be daunting, and many veterans face difficulties such as finding employment, accessing healthcare, or coping with post-traumatic stress.

According to the Department of Veterans Affairs, 29% of veterans who served in Operation Enduring Freedom or Operation Iraqi Freedom will experience post-traumatic stress disorder (PTSD) at some point in life, though these statistics are likely underreported since many returning veterans may not report PTSD symptoms or may not be screened at all. By recognizing and supporting our veterans, we can work together to address these complex challenges and ensure Veterans receive the care and opportunities they deserve.

Veterans Day is also an opportunity to extend our gratitude and support to the families who play an integral role in supporting and encouraging our military community. It is important to remember that no veteran serves alone. Spouses, children, and parents of veterans have also made sacrifices — enduring long deployments and the anxiety of worrying about their loved one’s safety — and they often have to endure PTSD or other mental health battles alongside their loved one.

Yet, despite these challenges, there is also great honor in their sacrifice. Being in the army taught me that a kid from a small town who is willing to raise his hand and take the oath to defend and protect our country would not only learn about military tactics, see the world, and be a part of experiences that are not possible as a civilian, but that anything is possible if you believe in yourself. The leadership, problem-solving skills, resilience, and team-building skills I gained through my service were life-changing. There is no doubt that the military is not for everyone, and the voluntary military system is a great one but, in FY 2022 the Army missed its recruiting goal by 25% (~15,000 active-duty soldiers), and as a society, we should carry some of the responsibility for this staggering number.

A society united in respect

Imagine a country in which veterans were put on a pedestal like professional athletes or looked up to and idolized like movie stars and musicians. Imagine what might happen to a 16 or 17-year-old who is trying to figure out what to do when she turns 18, so she looks to Brig. Gen. Smith in the Space Force as a hero and decides on a career as an Intelligence Analyst. Imagine a kid who is about to graduate high school but has no idea what his purpose in life is but decides to don the uniform of this country. Imagine not only what these choices would do for those individuals but also what might happen if the men and women of our armed forces were viewed as “influencers” and how that might re-center our societal priorities to “Be all you can be.”

While I am an optimist at heart, even I know a complete re-prioritization of values is nothing that can happen overnight, and a societal shift of putting the men and women who bravely defend our way of life in the same day-to-day conversations as celebrities and professional athletes is unlikely.

But this is H-Town. As the fourth largest city in America, Houston, we may have a problem, but we have influence. We have the ability to make changes so that Veterans Day can extend beyond November 11th.

This does not mean more parades or showering veterans with gifts or handouts, frankly most veterans (me included) would be adamantly opposed to this type of thing. What I’m talking about is making a conscious effort to learn about what our men and women in uniform do for this country and share that knowledge into normal day-to-day conversations (and social media posts!) with our friends, family members, work colleagues, and children. This is a powerful way in which we can all act individually and collectively to shape the future and honor the sacrifices made by our nation’s veterans and active-duty service members.

Leading by example

So, on this Veterans Day, attend the parades, thank those veterans you know for their service, and come together in your community to recognize the courage, sacrifice, and dedication of our veterans. But as Houstonians, let us make a commitment to find our own individual ways to elevate the sacrifices made for this country into the other 364 days of the year. This is Space City — anything is possible.

A Closer Look at Financial Hardship in the Houston Region

There is more to economic security than living above the poverty line.

Across Greater Houston, more than a million households struggle to make financial ends meet.  Among those households across Fort Bend, Harris and Montgomery counties, about 306,000 live below the Federal Poverty Level (FPL). However, this common economic measure only describes part of the economic reality in our community. The Asset Limited, Income Constrained, Employed (ALICE) data presents a more accurate picture of the economic reality across our community, especially regarding the number of households that are economically challenged.

What is ALICE?

According to the 2023 ALICE report for Texas by United For ALICE, 700,000 households across Fort Bend, Harris and Montgomery counties, or 31%, experienced ALICE in 2021 – they worked hard but couldn’t afford the basic necessities of life. The ALICE Report draws attention to the huge but often hidden segment of our community that is struggling to make ends meet, beyond those living on incomes below the FPL.

The ALICE data takes into consideration the ALICE Survival Budget, which is a bare-bones, real-world, conservative estimate for what it takes to make ends meet. It includes actual costs, such as housing, utilities, child care, food, transportation, health care, and a low-cost smartphone, and it changes based on the county of residence and size and composition of the household. Noticeably missing from the ALICE Survival Budget is the ability to save for emergencies or a rainy day. Individuals and families experiencing ALICE often feel the stress of living paycheck to paycheck and are one emergency away from financial hardship.

The ALICE Survival Budget highlights how a single adult in Harris County, for example, needed an annual income of $32,328 to afford the basics in 2021, while a family of three (one adult with one preschooler and one school-aged child) needed $61,548. In contrast, the FPL for a single adult was $14,583 and for a family of three was $24,860 in 2023 – a 121% and 148% difference, respectively. The individuals and families who earn above FPL but still can’t afford everything are often not eligible for assistance programs, public benefits, and other supports.

Picture source: an itemized budget, along with monthly and annual totals and the hourly wage needed to support the budget based in Harris County.
Comparison of itemized budgets for one adult versus one adult with a school-aged child plus pre-schooler in Harris County.

Households experiencing ALICE typically spend more than half of their income on housing and transportation, leaving less money for other essentials. The local cost of rent represents the greatest expense for a family of three in Harris County, averaging $1,208 per month. The same size family in Fort Bend would need $1,574 per month for housing and $1,334 in Montgomery County. The average monthly cost of transportation was $364 for the same size family across all three counties.

You can use the ALICE Survival Budget calculator to explore the Survival Budget for different household combinations.

Who is ALICE?

The ALICE data also reveals disparities and challenges faced by different groups of households in our community. By race and ethnicity, 43% of Black and 45% of Hispanic households were experiencing ALICE across Fort Bend, Harris, and Montgomery counties in 2021, compared to 25% of white households.

By age of head of household, those with a head of household under 25 years old or over 65 years old had the highest rates of financial hardship, with 40% and 42% experiencing ALICE respectively across the three counties.

By household composition, single-parent families with children were more likely to experience ALICE than married-parent households or single/cohabiting households without children. Single-female-headed households with children experience ALICE at 35% and single-male headed households with children experience ALICE at 45% across Fort Bend, Harris and Montgomery counties.

Screenshot of ALICE 2021 map for Greater Houston

We see the number of those experiencing ALICE growing across communities. You can dive into the ZIP Code level data for prevalence of those experiencing ALICE and living below the FPL. For example, when reviewing ZIP code level data, 77417 in Fort Bend County has 6,923 households experiencing ALICE, an increase of nearly 5% since 2018. In Montgomery County, zip code 77306 has 2,139 households experiencing ALICE, up 14% from 2018.

Where we live matters, impacting your financial stability, health, life expectancy, exposure to violence, access to resources, and housing. Yet individuals and families experiencing ALICE — whether they are homeowners or renters —are frequently forced to make difficult choices or sacrifices in other areas of their lives.

What’s important about being able to look at the ALICE data from this lens is that households of all ages, genders, races, and ethnicities, living in rural, urban, and suburban areas, are impacted by financial hardship.

ALICE and COVID

What’s important about being able to look at the ALICE data from this lens is that households of all ages, genders, races, and ethnicities, living in rural, urban, and suburban areas, are impacted by financial hardship. The ALICE data shows that financial hardship is not a temporary or isolated problem, but a persistent and widespread issue that affects households across our community. It also shows that the COVID-19 pandemic exacerbated the situation for many ALICE households. They faced employment shifts, health struggles, and disruption to day-to-day life activities.

Throughout 2020 and 2021, there were various temporary pandemic supports that provided a much-needed cushion for these struggling households, such as a range of direct assistance programs, including pandemic-specific unemployment insurance, economic impact payments, expanded Child Tax Credit (CTC) and Child and Dependent Care Tax Credit (CDCTC), and emergency rental assistance. The temporary relief mitigated the pandemic’s negative financial impact on ALICE households, avoiding what could have been a deeper economic crisis overall.

When combining the households that are living below the federal poverty level and experiencing ALICE, over a million households are forced to make difficult choices and risky tradeoffs every day across our area. This requires them to make tough choices, often forgoing basic necessities such as healthy food and health care which is why sufficient incomes matter for everyone.

How to Use ALICE Data

The ALICE data also highlights the opportunities and solutions that can help households achieve financial stability and well-being. United Way of Greater Houston is using the ALICE data to guide the Integrated Client Journey, which consists of a network of over 100 funded nonprofit partners that coordinate services to support those that identify as ALICE. The vision is that these organizations work together to help individuals and families to reach financial stability, ensuring that individuals and families in our community have the opportunity to thrive and to prosper.

We invite other service providers and community stakeholders to explore and use this data to gain a deeper understanding of the realities many of our neighbors are facing and how we as a community can lift up those struggling to make ends meet. To learn more about ALICE data visit https://unitedwayhouston.org/what-we-do/employed-but-in-need/.

Fort Bend County Health and Human Services’ Journey toward a Community Health Assessment

Banner photo: Carrie Rai, FBCHHS Performance and Innovation Specialist

This article is the first of a two-part series that describes the community engagement plan and process to create Fort Bend County’s first Community Health Assessment and Health Improvement Plan since 2007.

In the summer of 2022, Fort Bend County Health & Human Services (FBCHHS) completed its first Community Health Assessment (CHA) in 15 years. The Centers for Diseases Control and Prevention (CDC) defines a CHA as “an assessment that identifies key health needs and issues through systematic, comprehensive data collection and analysis. The ultimate goal of a community health assessment is to develop strategies to address the community’s health needs and identified issues.”  

The Process

FBCHHS followed the Association for Community Health Improvement Community Health Assessment Toolkit to guide the CHA process.

The CHA process was a collaborative effort, led by FBCHHS. The process of collaboration and community engagement began with identifying stakeholders from a variety of sectors within the community and the creation of the CHA Committee.

The committee was comprised of FBCHHS divisions and leadership and division representatives alongside community stakeholders representing primary health care, mental health, hospitals, private philanthropy, local government, non-profits, the faith community, academia, transportation, and public safety.

The committee was integral in guiding the process of the CHA, providing input for and reviewing the methodology, data, analysis, as well as determining the types of secondary data to collect, and what questions to ask in the survey and the key informant interviews. The CHA committee also made suggestions about who to interview and how to administer the survey.

More than 150 Fort Bend County leaders, residents, stakeholders and health champions and over 70 organizations attended the community input sessions throughout the CHA and community health improvement planning process. Additionally, FBCHHS conducted 25 key informant interviews and administered 845 surveys. These activities provided a platform for diverse agencies, community members and perspectives to be shared to generate inclusive, cohesive and attainable health improvement goals.

Image of a room with people around circular tables. The table in focus has four women engaged in conversation.
Event photo from The Big Picture – Fort Bend County

Community Health Priorities 

FBCHHS used the Kaiser Permanente National Community Benefit decision-making criteria for the identification and prioritization of health needs. Quantitative data was compared against the following benchmarks: the state of Texas, U.S. as a whole or the top 10% performing U.S. counties. A health issue was identified when there was poor performance across the comparative benchmarks. Health issues were also identified through thematic analysis of qualitative data from input sessions and Key Informant interviews. Community health need priorities were determined when the same health issue was identified in both the quantitative and qualitative data.

According to the 2022 County Health Rankings, Fort Bend County ranks fourth in the state for best overall health outcomes. However, the CHA data illustrates areas for improvement among vulnerable populations that have disproportionate health outcomes. Black and Hispanic populations, people without health insurance, and people with low-income have poorer health outcomes. These groups struggle to access services, contributing to health disparities.

Source: Kaiser Permanente National Community Benefit, August 2015

While there are several areas where Fort Bend County could see improvement, residents, community leaders and stakeholders identified five top community health priorities.

Mental Health

Like physical health, mental health is critical to our overall well-being. Good mental health affects our thoughts and behaviors, helps us maintain fulfilling relationships, enables us to cope with change and adversity, and ultimately supports our contributions to society. Mental health is also closely connected with physical health. Poor mental health may lead to behaviors that harm physical health (e.g., alcohol and other substance use, lack of exercise, etc.), and having poor physical health can negatively affect our mental health. About one in four survey respondents stated that their mental health was not good for one to five days out of the past 30, and 46% said mental health has been a problem in their household.

About one in seven survey respondents stated that there was a time in the past year that someone in their family needed mental health services but couldn’t receive them — either because they couldn’t afford to pay (34%) or the wait times were too long (27%). Overall, one-third indicated that mental health services are missing in the community. The data from surveys reflect mental health access challenges we see in Fort Bend, specifically. Within Houston’s three-county region, Fort Bend has the highest ratio of residents to mental health care providers, though there has been improvement since 2017.

Housing

Affordable, safe, and stable housing is a basic need, and unsafe or unstable housing threatens our health, well-being, and economic security. At the same time, the cost of housing is the single largest expense for most households, and it has become increasingly unaffordable in recent years. The U.S. Department of Housing and Urban Development considers affordable housing as not more than 30% of income. If a household spends 30% or more of their income on housing costs, they are “housing cost burdened.” Households that spend 50% or more of their income on housing costs are “severely cost-burdened.”

Renters are much more likely to be burdened by housing costs than homeowners. In 2021, more than 45% of renters were cost-burdened compared to 25% of homeowners; and 22% of renters were severely cost-burdened compared to 11% of homeowners. While the share of homeowners who are cost burdened has fallen since 2010, renters are more likely to be cost burdened now than a decade ago. Additionally, a person would need to work 3.2 full-time jobs at minimum wage to afford a two-bedroom rental property at Fair Market Rent in Fort Bend County. Fort Bend County’s population has already increased 41% over the last decade and is expected to increase an additional 15% to nearly 1 million by 2030, according to the Texas Demographic Center’s recent projections. Given these data, it is not surprising that one-third of survey respondents indicated affordable housing is missing in Fort Bend and more than half of Key Informant interviewees cited the issue as their top concern.

Obesity

Obesity, defined as having a body mass index (BMI) of 30 or more, is a complex health condition affecting both adults and children. Obesity increases the risk for health conditions such as coronary heart disease, type 2 diabetes, cancer, hypertension, and more. Obesity is found to take more years of life than diabetes, tobacco use, hypertension, or high cholesterol.

Nearly 30% of adults in Fort Bend County are classified as obese, according to County Health Rankings, and the disease was the top health issue identified among survey respondents. While not the only related triggers, poor eating habits and lack of exercise can contribute to obesity. About 40% of survey respondents are concerned with poor eating habits and 39% are concerned with a lack of exercise.

Cardiovascular Diseases

Heart disease was the fifth most-cited health issue by survey respondents and Key Informants with more than one in seven identifying the diseases as a health concern. White and Black residents of Fort Bend die from heart disease at significantly higher rates than Asian and Hispanic residents, according to the Centers for Disease Control and Prevention’s WONDER data tool.

The National Center for Health Statistics shows that three out of 10 deaths in Fort Bend County are attributed to heart disease and stroke. However, we know that many patients with heart disease also suffer from other chronic conditions, including lower respiratory diseases, diabetes, and kidney diseases, which comprised an additional 6% of deaths in 2020.

Maternal Health/Prenatal Care

Babies who are born in good health and who continue to thrive with positive experiences, tend to grow into healthy and productive adults who sustain our population and contribute to our economic vitality. Of course, a newborn’s health depends not only on the mother’s health during gestation but also her state of health before pregnancy. Early prenatal care is defined as pregnancy-related care beginning in the first trimester (1-3 months) and has been viewed as a strategy to improve pregnancy outcomes for more than a century.

In 2020, the rate of women who receive late (after the first trimester) or no prenatal care in Fort Bend County (30%) is three times that in Texas (10%) and five times the rate in the U.S. overall (6%). Between 2019 and 2020, Fort Bend saw an unprecedented 10-percentage-point decline in the proportion of women who received early prenatal care — a drop we didn’t see in neighboring counties despite the pandemic. Black and Latino women in Fort Bend had the lowest rates of early prenatal care, which is not surprising because a lack of health insurance is the largest contributor to women delaying or not accessing prenatal care, and women in those groups have the lowest rates of health insurance coverage.

Community Mobilization for Change

Through the CHA organizations, community members, and other stakeholders are able to evaluate the health of communities, factors that contribute to health challenges in Fort Bend County, existing community assets and resources to improve the community’s health can also be identified. The Community Health Improvement Plan (CHIP) contributes to the advancing of strategies to shorten the gap to accessing services, resources, and disparities faced with the top five community health priorities. The CHIP brings focus to the health issues identified in the CHA and allows communities, municipalities, jurisdictions, and community partners to actively collaborate and create a united plan to improve the health of Fort Bend County.

Healthy communities do not happen on their own, but through the efforts of community mobilization, local government support and key stakeholder contributions. Key stakeholders include local elected officials, hospital partners, FQHCs, foundations, non-profits, religious organizations, school districts, HOAs and many others. The shared goal is always to increase the quality of health across Fort Bend County. 

We invite you to join us in reducing the gap for accessing services and or providing resources for the community members to meet the needs identified from the top five health priorities. FBCHHS Office of Communications, Education and Engagement is available to present to your organization or business about the CHIP to bring further awareness on how your organization or business can aid the community members of Fort Bend County.

Please email hhsoutreach@fbctx.gov to request a presentation.

Please access the full Community Health Assessment and Community Health Improvement Plan at http://www.fbctx.gov/cha!

Key Insights from The Big Picture | Montgomery County

On January 25, 2023, in partnership with Montgomery County Community Foundation, we hosted our first event of the year: The Big Picture | Montgomery County. The room was full with over 75 leaders across various sectors, including Judge Wayne Mack, Justice of the Peace, Precinct 1, Montgomery County, who assembled the Behavioral Health and Suicide Prevention Task Force in 2020. At this event, Understanding Houston shared key data highlighting Montgomery County’s strengths and challenges, and participants were able to react and respond to the data – the findings of this activity are below.

Watch the one-minute recap video, view photos from the event, and review the presentation.

Understanding Montgomery County  

The program began with Julie Martineau, President & CEO of Montgomery County Community Foundation and member of Understanding Houston’s Advisory Committee. Julie shared how critical it is to use data in decision-making. 

“Data is key to understanding what is happening in our community, where we’ve been, where we are right now, and where we are going. The change makers of Montgomery County are the people who can make an impact and  use data to measure whether it is working or not.“

Julie Martineau, President & CEO, Montgomery County Community Foundation

Julie explained how Montgomery County Community Foundation works for the present and future well-being of Montgomery County, while Greater Houston Community Foundation works throughout Harris, Montgomery, and Fort Bend counties. Because of this overlap, there is often powerful cross-collaboration between the two foundations. 

Julie shared how Understanding Houston is a resource for independent and accessible data that organizations, community and civic leaders, and other residents should use to measure progress and effect change. 

Exploring the Trends and Data 

Montgomery County has grown significantly, but wages have not kept up

Montgomery County’s population has grown nearly five times in just 40 years, numbering more than 620,000 according to the 2020 Census. Job growth was double the rate of the state and nearly quadruple the rate of the country, while GDP growth over the last two decades consistently outpaced Fort Bend and Harris counties, the state, and the nation. 

While GDP grew 82% between 2010 and 2021 in Montgomery County, median household income grew only 7% during the same period. Not only have incomes stagnated, but income inequality has not improved in Montgomery County. 

Nearly half of all income in Montgomery County went to 20% of the highest-income households, while just 3% of all income went to the bottom 20% of households. While the income gap between white and Hispanic households decreased by 22% between 2010 and 2021, the gender pay gap increased by 41% for the same period, and Hispanic households still earn about two-thirds of what white households earn. 

Montgomery County’s poverty rate has increased recently, contributing to growing inequality. The percentage of children under five living in poverty increased from a decade-low of 12% in 2017 to 24% in 2021.  

Nearly 1 in 5 children under the age of five in Montgomery County lives in poverty.

Households that live above the poverty line but earn less than what it takes to meet basic needs are called ALICE (Asset-Limited, Income-Constrained, Employees) – also known as the working poor. Combining households in poverty and ALICE, nearly two out of every five households in Montgomery County struggle to afford basic necessities like rent, transportation, and food.

Rent has increased and consumes a larger portion of incomes

In Montgomery County, rent increased 22% between 2010 and 2021 compared to an 8% decrease in housing costs for homeowners; the percentage of renters that spend at least 30% of their income on housing is double that of homeowners. Some individuals and families will move farther from city centers to access more affordable housing, which can translate into higher transportation costs.

Montgomery County residents typically spend 53% of their income on housing and transportation alone. On par with L.A. County residents (52%) – a place infamous for its expensive housing market and long commutes.

While a higher percentage of households in Montgomery County are homeowners (75%) compared to the state (63%) and the nation (65%), the homeownership rate in Montgomery County has not seen any improvement over the last decade.

Considering rising rents, homeownership appears to be increasingly out of reach for many first-time homebuyers. This is problematic because home ownership is still one of the most effective ways to build wealth and improve economic mobility.

Where we can afford to live determines more than housing costs

Where we live determines more than just our housing and transportation costs. It also affects our environment, including the air we breathe and the temperature we feel.

In Montgomery County, ozone levels were rated “F” by the American Lung Association – the same rating for Harris County. Montgomery County experienced 523 days of extreme heat, defined as 95°F or higher, during the 2010s decade. This extreme heat was a 231-day increase – the equivalent of nearly two-thirds of a year – compared to the previous decade.

Bad air and extreme heat can lead to premature death and shorter life expectancies as our environment is inextricably linked to our health.

Poor environment and lack of health care access contribute to poor health

Over 90,000 Montgomery County residents under the age of 65 do not have health insurance coverage and do not have adequate access to primary care physicians. There is only one primary care physician for every 1,674 residents compared to one for every 1,319 residents in the U.S. overall.

Clinical guidelines focus on the role of primary healthcare in obesity prevention, and obesity rates in Montgomery County have been up 14 percentage points since 2011. In just a decade, the percentage of residents living with obesity in Montgomery County went from being the lowest in the three-county region to the highest.

One out of three adults in Montgomery County are living with obesity.

Adding to healthcare challenges, Montgomery County has less mental healthcare availability than the state, and Texas ranks last across all states in access to mental health treatment. Montgomery County has only one mental health provider for every 1,069 residents.

Even more concerning, Montgomery County has consistently had the highest suicide rate in the region over the past two decades, and suicidal thoughts for young adults between 18 and 25 in the Houston area have nearly doubled. Research has shown that recent years have been especially difficult for youth and young adults due to social isolation caused by the COVID-19 pandemic and several subsequent traumatic events in recent years.

Educational outcomes suffered from the impacts of the pandemic

The pandemic delayed the opportunity to see the full impact of House Bill 3 (HB3), which was signed into law in 2019. HB3 required all pre-K programs to be full-day, which has added benefits over shorter-day programs. Montgomery County saw a 16-percentage point increase in the rate of pre-K students enrolled in full-day programs between 2018 and 2020, despite still having the lowest rate.

A higher percentage of Montgomery County kindergarteners assessed are considered kinder-ready (57%) compared to Fort Bend (54%) and Harris (45%) counties. However, not all kindergarteners in Texas are assessed equally. Only 31% of Montgomery County kindergarten students were assessed, compared to 96% in Fort Bend County and 90% in Harris County. This rate has been consistently decreasing in Montgomery County compared to a consistent increase in the neighboring counties.

If we look at a group of Montgomery County eighth graders and their educational journey through higher education, many do not ultimately earn a higher education degree or certificate. For every 100 students enrolled in eighth grade during the 2011-12 school year, 80 graduated from high school, 50 enrolled in a Texas higher education institution, and only 22 earned a credential or degree by the time they turned 25. Among economically-disadvantaged students, only 10% earned a degree or certificate compared to 30% of their wealthier peers.

Place-based disparate outcomes

Montgomery County’s economy has grown significantly, but that growth has not translated into growing wealth and prosperity for all residents. Income inequality has not improved, the poverty rate has increased, and nearly two out of five households struggle to afford basic needs. This inequality exacerbates the disparate impacts of rising rents, worsening environment, and low access to healthcare, which play a role in the vastly different outcomes we see for residents. According to research from Opportunity Atlas, one’s childhood zip code can tell a great deal about expected outcomes within each county.

On average, a child from a low-income family who grew up in Conroe earned a household income of $24,000 as an adult, whereas a low-income child from The Woodlands earned $53,000. About 38% of women who grew up in low-income families in a neighborhood in Conroe became teenage moms compared to 5% of low-income women from a neighborhood in The Woodlands.

“[The] community is not fully informed about what is truly happening in rural parts of [the] county. It’s easy in The Woodlands to be isolated from the poverty.“

Anonymous Participant

These problems cannot be solved alone. Cross-sector conversation and collaboration are required for Montgomery County to truly be a place where all its residents have the resources and opportunities they need to prosper.

Results from the Group Discussion

Given that many often need more time or capacity to converse and collaborate with those outside their organization, attendees were given time to reflect on how the data may align with what they see in the communities they reside, work in, and serve. Attendees reported that:

  • Many Montgomery County households struggle to afford basic needs, and there are disparities between neighborhoods regarding health, access to services, income, and housing.
  • There has been an increase in mental health issues among Montgomery County residents, youth and young adults in particular, and it is difficult to access mental healthcare.
  • Residents are often underinsured or uninsured, and there is a high use of emergency room services in place of primary/preventative care.
  • There is a severe lack of affordable housing.

Realizing that the county-level averages provided in the presentation can mask differences across various communities, attendees were asked how the data may need to align with what they see in the more granular communities they reside, work in, and serve. Attendees reported that:

  • Even though the data shows more access to mental health providers than primary care physicians in Montgomery County, mental health seems more difficult to access than primary/preventative care.
  • Schools in the south of the County appear to have better student outcomes than the county-level data show.
  • Access to health care is not a pressing issue within specific Montgomery County communities, likely due to new hospital facilities.
  • They do not see a reduction in the income gap between white and Hispanic households through the community they serve.

Given time limitations, not all quality-of-life indicators from the website were included in the data presented. Some issues attendees noted that were not in the presentation but were pressing challenges in the communities they serve were:

  • The lack of resources available to support individuals with autism spectrum disorder and with intellectual or developmental disabilities.
  • The lack of resources and services for the growing numbers of older adults (age 65+).
  • The income gap between white and Black households.
  • Lack of public transportation.
  • Food insecurity and food deserts.

Based on the most common themes discussed, mental health and poverty, the rest of the session was dedicated to discussing potential projects and ideas for collaboration around these two issues. Some of the suggestions that came out of the discussion were:

Mental Health

  • Partnering with local colleges to better prepare and increase the workforce of mental health practitioners.
  • Funding for mental health provider salaries to increase the workforce.
  • Establishing Community peer support groups.
  • Differentiating between mental illness and mental health and collaborating to utilize alternative services to help with mental health, such as community, exercise, animals, nature, etc.
  • Leveraging telehealth to circumvent obstacles such as transportation.

Poverty

  • Increasing the minimum wage to something that accurately reflects the cost of living.
  • Creating mixed-income communities to ensure affordable housing is available in high-opportunity areas.
  • Providing more mentorship to students, including expanding career and technical education (CTE) opportunities, local trade school resources, and removing barriers for individuals to further their education.