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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHere's The Hourly Income You Need To Afford Rent Around The U.S., And It's Not Looking Good
ull-time workers who make minimum wage cant afford a one-bedroom rental home in any state in the U.S. without spending more than the recommended 30 percent of their income, according to a report from the National Low Income Housing Coalition (NLIHC).
The groups annual Out of Reach report compares minimum wages and housing costs in states, metropolitan areas and counties across the country. This years results show the hourly wage rate needed for a modest two-bedroom rental in 2022 is more than double the federal minimum wage of $7.25 per hour in every single state.
Nationally, a person would need to make $25.82 per hour to pay for a modest two bedroom rental home without spending more than 30 percent of their income on housing. For a modest one-bedroom rental, its $21.25.
Even where local minimum wages are higher than the federal standard, its not enough. No local minimum wages are sufficient to afford a one-bedroom rental home at the fair market rent with a 40-hour workweek, the group states.
https://www.msn.com/en-us/money/personalfinance/here-s-the-hourly-income-you-need-to-afford-rent-around-the-u-s-and-it-s-not-looking-good/ar-AA1ifP5n?ocid=msedgntp&pc=ENTPHB&cvid=762e66468a2c477a8da0e57d826e653a&ei=49
FakeNoose
(33,048 posts)William769
(55,234 posts)are cheap but jobs can be tricky. I love PR when you get away from San Juan.
progressoid
(50,059 posts)CrispyQ
(36,645 posts)Federal minimum wage is $7.25 an hour & hasn't been raised since 2009. Shameful, absolutely shameful.
William769
(55,234 posts)moniss
(4,274 posts)is a new basic Honda Civic in 2009 had a sticker starting around $16K. The 2023 starts at just over $23K. That percentage trend of about a 50% increase in pricing follows through on the used market for cars also. Many times in cities where better paying jobs have moved to the suburban industrial parks there are transportation barriers for people to be able to reliably get to those jobs. Mass transit may not serve the area etc. Hitching rides and car pooling are not always a sure thing right away and employers want to know you will be at work every day and not have transportation issues.
sheshe2
(84,209 posts)Out of Reach is a fact.
William769
(55,234 posts)sheshe2
(84,209 posts)thatdemguy
(453 posts)For a modest 1 bedroom, add in electric and it was about 60%. I brought home right at 250 a week and my rent was 485, electric was another 100.
I spent 11 bucks a week on grocerys, and most of that was oodle of noodles. I was in local 24 ibew, and paid more in union dues than I ate a week.
It sucked
William769
(55,234 posts)thatdemguy
(453 posts)just over 30% of my take home. All the extras for tv, electric etc run 350-650 a month depending on the time of the year. But I make a lot more than I did 30 years ago. I also have a house on 5 acres.
aggiesal
(8,975 posts)I was making $13.80/hr.
My rent was $500/mo.
That was a little under 50% (45.3%) of my take home pay.
I had to pay Gas, Electric & Telephone (Cell phones only existed in Get Smart or Star Trek TV shows)
TimeToGo
(1,366 posts)We paid $700 a month in the early 80s in the Bay Area. 2 bedrooms, 1 bath. Nice enough, but not special. Loved it out there, but that was one of the main reasons for leaving.
aggiesal
(8,975 posts)$500 was for 1BdRm, 1 Ba. apartment
BigmanPigman
(51,735 posts)crud
(635 posts)we just can't solve the homeless crisis.
Jerry2144
(2,149 posts)Typical billionaire cant afford the aircraft carrier sized yachts while paying their 0% tax rates.
Note:
sanatanadharma
(3,769 posts)In Montevideo, Uruguay rent a one bedroom sea-side*, all rooms sea-view, 4th floor apartment with 50 foot wide balcony overlooking the water and a park, with potable water and heat for $1060.00 US per month in a historic building.
My cardiologist visit next month will be $15 US.
* Technically the very wide Rio de la Plata estuary here is not sea but 60 miles upriver, though it is here called 'el mar'.
doc03
(35,512 posts)4lbs
(6,874 posts)arrangements. Just to be able to afford to live.
I know of 4 people (two couples), that rent a 3 bedroom, 2.5 bathroom house for $4000 per month locally. That comes out to pretty much $1000 per person just for rent. They were able to wrangle a 2-year lease with the landlord, so that the price is stable for that time.
Each couple lives in a bedroom, and the 3rd bedroom is for their children, each couple has one child. The children share a bedroom (they are really young right now and both are boys).
Add in health insurance, car insurance, transportation (gas, etc.), food, utilities, etc. and that is easily another $1000 monthly each.
So, $2000 per month per person just to live "normally". Remember, that is just RENT. No home ownership or equity buildup. They are somewhat young right now (each couple is in their later 20's).
If one couple was to move away, it would be very difficult for the other couple to do anything. They would also have to leave and go to a much smaller place, or else try to replace those that left.
Grasswire2
(13,580 posts)what is the remedy?
thesquanderer
(12,018 posts)I don't find it surprising that minimum wage doesn't provide the ideal living standard.
Longer term, hopefully, the remedy is that someone can get a better than minimum wage job.
But for students working summer jobs, people working their first job out of high school... I don't really see an inherent problem with their not being able to afford a 2 BR apartment (or even a 1 BR) with just 30% of their pay. I think this is the kind of thing that gets the right looking at the left like we're crazy.
gristy
(10,669 posts)Eventually, and with the parents help, I could afford to buy a small 4 BR house, and I rented out 3 BR to 3 friends.
Kaleva
(36,474 posts)Several generations living in one home
Ford_Prefect
(7,961 posts)both rents and property values inflated to suit them, things will get worse long before better arrives.
JCMach1
(27,595 posts)Class assets ...
Warpy
(111,559 posts)Whenever I start to get homesick, I just check the rents in my none too good neighborhood.
Congress still hasn't raised the national minimum wage from $7.25.
tiredtoo
(2,949 posts)Lots of work to do to turn this around.
cstanleytech
(26,390 posts)corporations just hike their prices and we are back in the same damn boat.
What's really needed is a change that is more likely to accomplish lifting people up and out is by approaching the problem with both a carrot and a stick.
The stick being a massive tax increase on corporations but the tasty carrot being that they can reduce their taxes depending on how many of their workers earn more than +500% of the federal poverty level as set automatically by the GAO without needing the consent of the Whitehouse or Congress.
Temp and contract workers (other than construction workers and similar such workers) also count as employees if a company excessively uses such workers.
Kaleva
(36,474 posts)Rent includes utilities except electricity