Rental Costs Continue to Climb, Pricing Millions of Working Americans Out of Their Own Housing Markets
Dec 14th, 2006 by Gabe
The cost of affordable rental housing climbed again in 2006, out pacing the wages of those who need it most. The national two-bedroom Housing Wage climbed to $16.31 for 2006, up from $15.78 last year. This is the hourly wage a full time worker must earn in order to afford a two-bedroom home at his or her community’s Fair Market Rent (FMR).
The National Low Income Housing Coalition’s (NLIHC) annual Out of Reach report, released on December 12, provides data for every state, metropolitan area and county in the country showing how much a household must earn to afford a modest market-rate rental home. The report also provides local wage and income data for comparison purposes.
“Every year it is becoming more difficult for low income families to find decent homes they can afford,” said NLIHC President Sheila Crowley. “As we approach the holiday season with its intense focus on consumer spending, Out of Reach shows the difficulty that millions of low-income families face to even pay for their homes.”
While the national two-bedroom Housing Wage stands at $16.31, in 2005, the most recent year for which data are available, the median hourly wage for all workers was $14 and the estimated average renter wage was $12.64. The problem is particularly stark for the lowest wage earners, including those who earn just the minimum wage, even in states that have higher minimum wages than the federal minimum wage, which has been stalled at $5.15 since 1997. Minimum wage earners are unable to afford even a one-bedroom home anywhere in the country, and 88% of renters in cities live in areas where the FMR for a two-bedroom rental is not affordable even with two minimum wage jobs.
