For Immediate Release
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Data from Latest United Way ALICE Report Reveals More Than One Million Households in the Greater Houston Area Struggle to Make Ends Meet
HOUSTON, TX (October 22, 2024) – Newly released data from the United Way ALICE (Asset Limited, Income Constrained, Employed) Report shows an increase in households in the Greater Houston area that are struggling monthly to afford basic necessities. The report offers a detailed look at the income needed for an average household in this region to make ends meet. It takes into account the local cost of housing, childcare, transportation, food, taxes, health care, technology, and miscellaneous expenses. In the four-county region of Fort Bend, Harris, Montgomery and Waller counties, 31% of households are experiencing ALICE, with another 13% of households living below the Federal Poverty Line.
The ALICE Report places a spotlight on the large population of hardworking residents in the Greater Houston area, many of whom work multiple jobs, but have little to no savings and are often forced to make tough choices, such as deciding between quality childcare or paying the rent. Using the latest data collected in 2022, this year’s ALICE Report highlights the impact of losing COVID-related tax credits that were helping many families cover living costs. With the loss of these incentives and the added pressures of higher inflation, many families are facing increased financial challenges. Reinforcing the financial challenges faced by those experiencing ALICE is data from the 2024 Kinder Houston Area Survey, which shows that 46% of area residents who responded to the survey are unable to produce $400 to cover an emergency, such as a major car repair or doctor bill.
“Those in our community experiencing ALICE are often faced with tough financial choices, such as deciding between going to the doctor or paying the utility bill, and these choices can have long-term consequences for all of us,” said Amanda McMillian, president and CEO, United Way of Greater Houston. “The ALICE Report offers valuable data that allows us to invest in communities that are high areas of need so that those households experiencing ALICE have the opportunity to achieve financial stability goals that enable them to not only land on their feet but stay there.”
The United Way ALICE Report uses data from a variety of sources, including the U.S. Census, to provide an in-depth look at financial needs in the region. The Federal Poverty Line is considered an outdated calculation that no longer provides accurate information about the number of people facing hardship across the country. The ALICE Report measures the real challenges many working households face and encourages the use of data to inform both programmatic and policy solutions for those households and their communities.
This year’s ALICE Report reveals many data points, including: • In the four-county region served by United Way of Greater Houston (Fort Bend, Harris, Montgomery and Waller counties), 31% of households are experiencing ALICE, with another 13% of households living below the federal poverty threshold. • The number of households experiencing ALICE has increased by 20,000 since the last ALICE Report in 2023, largely due to the population growth in the region, especially in suburban areas. • Since 2018, the cost of basic necessities for a family of three (single parent with preschooler and school-aged child) increased by $17,563 (30%), with food costs being one of the largest increases, from $530 per month in 2018 to $958 in 2022. The local cost of rent represents the greatest expense for a family of three, averaging $1,273 per month. For the same size family, local childcare costs represent the third greatest expense, averaging $930 per month. • The ALICE Survival Budget, which shows how much an individual or family needs to cover the bare minimum costs locally to live and work in the modern economy, does not allow for any savings, leaving a family vulnerable to any unexpected expense, such as a costly car repair, natural disaster, or health issue.
For more information on ALICE and to review this year’s report, visit https://unitedwayhouston.org/what-we-do/employed-but-in-need/.
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