Study says: NPR rents are out of reach for most Americans earning minimum wage

[ad_1]

A new study suggests that, on average, a person should earn $24.90 an hour to rent a modest two-bedroom home for no more than 30% of their wages. This is much more than the federal minimum wage. Rich Pedroncelli / AP Hide Caption

Toggle Caption Rich Pedroncelli / AP

A new study suggests that, on average, a person should earn $24.90 an hour to rent a modest two-bedroom home for no more than 30% of their wages. This is much more than the federal minimum wage.

Rich Pedroncelli/AFP

US renters are well aware of the dire situation in the housing market and a new report confirms that it is likely to get worse unless hourly wages are increased significantly.

Workers simply aren’t earning enough to keep up with soaring rental prices across the country, the National Coalition on Low Income Housing found in its latest Out of Access report.

“No worker in any state, metropolitan area, or county in the United States who earns the minimum federal, state, local, or state wage shall afford a modest two-bedroom house at fair market rent by working a 40-hour workweek,” a report released Wednesday Find.

The alliance keeps track of how much money a person must earn to buy an apartment or other rent at a fair rent in their community. Additionally, the report defines “affordable cost” as 30% or less of an individual’s income.

On average, a renter looking for a modest two-bedroom home who seeks to stay within a 30% income window would need to earn $24.90 an hour, the study says. (This number is more than 3.4 times the federal minimum wage.) Those looking for a one bedroom in a similar situation; They need to earn $20.40 an hour.

Meanwhile, affordable units are becoming increasingly rare. Analysis shows that in only 218 of more than 3,000 counties nationwide, a full-time minimum wage worker can afford to rent a one-bedroom home at fair market rent without sinking into the income that must be used for all living expenses and other savings.

Stagnation of the federal minimum wage exacerbates the housing crisis for low-income renters

Obviously, rates vary zip code by zip code, but the authors note that “low-wage workers everywhere are struggling to afford their housing” in light of the stagnant federal minimum wage. The hourly rate has been held at $7.25 since 2009 despite the rising cost of living.

Even in places where a higher minimum wage has been implemented, low-income non-homeowners face severe financial hardship. California, where 45% of families live in rentals, ranks as the most expensive rental market, despite the fact that the statewide minimum wage is $14 an hour, depending on the size of the company.

However, according to the report, a person earning $14 an hour would have to work 89 hours a week to cover their “modest” one-bedroom rent, which is estimated at $1,615 a month.

The annual report notes that affordable rents are the most difficult for black tenants who are more likely to have lower-paying jobs and are therefore more likely to evict.

[ad_2]