The National Income Housing Coalition (NIHC) finds a minimum-wage earner with a full-time job can’t afford a two-bedroom apartment in any state in the U.S. This reality is based on rent costs determined by the HUD estimated Fair Market Rent (FMR), and a household budget that allocates no more than 30% of income (of one minimum-wage earner) on housing costs. The group produced a list of just how expensive a two bedroom apartment rental is in each state based on the wage a single earner would need to earn to afford it using just 30% of income:
Most Expensive
- Hawaii – $32.14
- District of Columbia – $27.15
- California – $25.78
- New York – $25.25
- New Jersey – $24.84
Least Expensive
- Puerto Rico – $10.41
- North Dakota – $12.06
- West Virginia – $12.35
- Kentucky – $12.71
- Arkansas – $12.76
So What?
The rental market is booming. During 2011, the number of renter households increased by more than 1 million reaching 40.7 million or 37.5% of all households in the United States. Among all renters, the NIHC finds what they call the “2013 Housing Wage” (the wage needed by one earner holding one full-time job to be able to afford the average 2 bedroom apartment rental in the United States) to be $18.79, which greatly exceeds the $14.32 average hourly wage of all renters.
- Take a few minutes to research what a typical 2 bedroom apartment rental costs per month in your community then do the math to see what wage would be required to afford this cost assuming the household has just one wage earner and that only 30% of those earnings are spent on housing. Does the answer challenge your assumptions about the economic challenges faced by many in your area?
- How is your local congregation involved in making a difference with providing more affordable housing in your community? In assisting those within your fellowship in securing housing, including accessing any programs that may assist with such costs?