Another tough PCS season is winding down, but it doesn’t mean military families have a perfect rental home solution for the long term. Instead, many live in temporary homes that include campgrounds, hotel rooms, and shared houses—not exactly conducive locations for starting over in a new city.
Servicemembers face two significant factors when searching for rental homes: basic housing allowance (BAH) that doesn’t meet today’s rental home prices and the severe lack of houses for sale and rent. Because PCS orders demand relocation without regard to the national real estate outlook, military families are caught in the middle of one of the worst housing crises in modern U.S. history.
Let's talk about solutions and what to expect going forward.
If you’re wondering why rental homes are in short supply and cost so much, it's the combination of multiple factors.
It was common for military families to pay above BAH even before the pandemic to rent homes in desirable neighborhoods with top-ranked schools and close commutes. But, those costly factors combined with the current inflated rents have priced many military families out of stable homes.
For a quick reminder, these are the BAH increases over the last two years. If you need to check yours, use the official calculator.
Now, compare these BAH increases against the largest military-heavy metro areas with the fastest rent growth change in rent from the first quarter of 2020 to the first quarter of 2022.
It’s easy to see the number mismatch and how rent prices severely affect where and how military families rent homes.
Unfortunately, military families have had to tap into their resourcefulness and choose alternative living options. However, most aren’t sustainable because of the location, unaffordability, and myriad other reasons. These are some of the current solutions to rental home shortages.
Read When You Can’t Find a Home at Your New Duty Station to get ideas for a rental home alternative.
Big changes in the Department of Defense and its military budgeting take a lot of time and negotiation, so it’s unlikely military families will see a significant change soon. Likewise, rental vacancies and affordability don’t appear to be changing much in the real estate market, especially in light of climbing interest rates that keep potential buyers from vacating rental homes.
The DOD is well aware of the housing struggles military families face and will face in the future. Unfortunately, the DOD hasn’t made quick changes to the housing crisis other than some exemptions for the 10-day temporary lodging reimbursement.
They’ve also discussed other changes like:
Some of these changes require decision-making at the local level, so it's best to discuss with your command to find out about the latest adjustments.
If you’ve been living in temporary housing long-term, you could probably use 6 Ideas for Surviving an Extended Stay in Temporary Lodging.
Even with bipartisan attention from U.S. Representatives and Senators, major changes in BAH amounts won’t be adjusted until the way BAH is calculated is changed. Rank and location affect BAH amounts, but they’re only calculated yearly and don’t reflect the current rental markets’ inflated rates. While some military rental markets have increased nearly 20% over the last three years, a nominative BAH increase each January doesn't hold up.
The 2023 National Defense Authorization Act is currently under construction. It includes some BAH fixes, including a report on how BAH is calculated and the removal of BAH when calculating the Basic Needs Allowance. However, it’s expected that the NDAA won’t pass until November’s midterm elections reveal how Congress changes and who will drive policy in 2024.
As for the real estate market, low inventory and higher price points will remain the status quo for the foreseeable future. The circle of scarcity and unaffordability will stay until new housing increases substantially (both on and off base).
Finding a rental home is beyond challenging, especially if your new landlord requires multiple months of rent and deposits just to move in. If you’re in a difficult financial situation, these relief organizations can help with grants and loans and point you to more organizations that help military families.
We frequently update our housing inventory for homes for sale and rent, so check often to see what housing is available near your next duty station.