Rich Pedroncelli / AP
American lessors are well aware of the dire housing market situation, and a new report confirms that it is likely to worsen unless hourly wages are raised significantly.
Workers are simply not earning enough money to catch up with the nation’s soaring rents, the National Low-Income Housing Union found in the latest Out of Reach report..
“In any state, metropolitan area, or county in the United States, workers with a federal or general state or local minimum wage work standard 40 hours a week and are reasonably priced at fair market rents. I can’t buy a two-bedroom rental home. ”You will find a report released Wednesday.
The coalition tracks the amount of money a person needs to earn to pay for an apartment or other rent at a fair market rent in the community. In addition, the report defines “affordable” as less than 30% of an individual’s income.
Studies show that on average, lessors looking for a modest two-bedroom home trying to stay within the 30% income allowance need to earn $ 24.90 per hour. (That number is more than 3.4 times the federal minimum wage.) Those looking for a one-bedroom are in a similar position. They need to earn $ 20.40 per hour.
On the other hand, affordable units are becoming more and more rare. According to the analysis, only in 218 of the more than 3,000 counties nationwide, full-time minimum wage workers have one bed at a fair market rent without being immersed in all other living expenses and income to be used for savings. You can buy rental housing for your room.
Federal minimum wage stagnation exacerbates the housing crisis for low-income earners
Obviously, rates vary by zip code, but the author states that “everywhere low-wage workers are having a hard time buying a home” in the light of the federal minimum wage stagnation. Despite rising living costs, hourly wages have remained at $ 7.25 since 2009.
Even where higher minimum wages are in place, low-income non-homeowners face extreme financial difficulties. California is the most expensive rental market, with 45% of households living in rental housing and a state-wide minimum wage of $ 14 per hour, depending on the size of the company. It is ranked first.
Still, reports show that a person who earns $ 14 an hour has to work 89 hours a week to cover a “modest” one-bedroom rent, estimated at $ 1,615 a month.
The annual report states that affordable rents are the most elusive for colored lessors who are most likely to have low-paying jobs and are therefore at high risk of eviction.
Rent is out of reach for most Americans who earn the minimum wage, the study says: NPR
Source link Rent is out of reach for most Americans who earn the minimum wage, the study says: NPR