This population is considered to be asset-limited, income-constrained and employed, also known as ALICE. The latest figures are based on data collected in 2022. The United Way of Northern New Jersey leads the ALICE project and is supported by branches in 27 other states.
The United Way of Northern New Jersey compiles reports for states at the county, state and ZIP code level. Then, the United Way of Greater Houston uses that data to inform its regional approach and identify areas in need of resources or where there’s a higher prevalence of ALICE households.
The United Way of Greater Houston, which is a research partner with the Kinder Institute, serves Harris, Fort Bend, Montgomery and Waller counties. The percentage of ALICE households across the four counties ranges from 27% to 32%. Thirteen percent of households in the four-county area are under the federal poverty threshold. In Texas, 29% of households are ALICE, and 14% of households live in poverty.
Elias Delgado is a manager on United Way of Greater Houston’s learning, analytics and compliance team. His role includes educating community partners and residents on ALICE data and how it drives the organization’s mission.
The Urban Edge spoke with Delgado to learn more. The interview has been edited for length and clarity.
What was your key takeaway from the 2022 ALICE data?
The percentage of ALICE households in the Greater Houston area stayed pretty flat. In 2021 it was 31%, and in 2022 it was 32%. Before 2021, there were a little under 1 million households that were experiencing financial hardship. In 2021 and 2022, that number jumped up to over 1 million households.
We have started seeing pockets of communities and households experiencing financial hardship and experiencing ALICE out in some of our outlying communities like Montgomery County, Waller County and Fort Bend County. Traditionally, we would see a high prevalence of ALICE households within the 610 Loop, but that’s changing.
What is causing financial hardship for households in Houston’s suburban areas?
What we’re seeing most is as the population in Greater Houston is growing exponentially, the number of households experiencing financial hardship is growing at a very rapid rate as well. The population seems to be growing outward into the outlying communities such as Waller, Montgomery and Fort Bend counties. One of the reasons is it’s a little bit more expensive in terms of housing and food out in those outlying counties than it is in Harris County, according to the ALICE data. It’s more expensive in Montgomery County and Fort Bend County than it is in Harris County to afford an apartment for a household of three. Food costs are more in Waller, Montgomery and Fort Bend than in Harris County.
There’s also a reality in those outlying communities of a scarcity of resources. For individuals or households that are experiencing ALICE and in need of assistance, there aren’t many resources available to help them with whatever those needs may be, whether it’s rental assistance or food assistance. That makes it that much more difficult for households that are struggling to get the help that they need to better their situation or just be able to have the basic necessities to survive.
What is the biggest expense for households in the Greater Houston area?
Housing costs have soared in the Greater Houston area. As housing prices go up, households have to make those tough decisions of where to live, how much to pay and where they can find a place to call home. Where people live plays a big role. Housing costs are different in Fort Bend, Harris, Montgomery and Waller counties. The ALICE data takes that into account, and that impacts other parts of the survival budget.
What is the significance of the ALICE Survival Budget?
It shows what households need to make ends meet. For example, here in Greater Houston, a family of three would roughly need about $75,000 annually to make ends meet. The survival budget breaks it down by what those costs are, like rent, utilities, transportation, child care and technology. Before, technology was a luxury, but now it’s a daily necessity for access to work or for students to access their school work.
With the departure of COVID-era subsidies, what programs are assisting ALICE households?
We are partnering with Harris County to provide rental assistance to individuals who may be experiencing financial hardship. They have a stable job, and for whatever reason an unexpected issue came up, and people cannot afford their rent for that given month. We can take care of some of those needs.
We want individuals to not just land on their feet, but stay there. If there is support provided to individuals that need it the most, where they can feel that certain needs are taken care of, that allows them the opportunity to really maximize their potential and to strive toward better jobs and better financial security for their families.
What resources are available to ALICE households?
One is our Navigation program, where clients work hand in hand with Navigators to get connected to the resources that they need. They identify long-term goals like going back to school, assistance for child care, rental assistance or food assistance. The United Way funds over 90 organizations, and through that network, we’re referring clients to individuals at specific organizations. That person is going to know what the clients’ needs are, and make sure they're getting support as they embark on their journey towards financial stability.
What do you expect to find in next year’s ALICE data?
I expect inflation to be captured more, and the impact it had on the increasing costs of food and housing. I’m also expecting the transportation component to be higher because of gas prices. For individuals who were able to purchase homes or vehicles, all-time highs for interest rates may play a part in seeing some increases in the survival budget.
