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Gap Widens Between Wages, Affordable Rents

WASHINGTON, DC-The household income needed to afford a two-bedroom apartment has increased since 2009, while the average renter's wage has declined, says the NLIHC.

By Paul Bubny | Updated on April 21, 2010

WASHINGTON, DC-The gap between minimum wages and affordable housing rents continues to widen, says the National Low Income Housing Coalition in its “Out of Reach 2010″ report released Wednesday. NLIHC president Sheila Crowley said during a conference call that she’s pleased with congressional lawmakers’ efforts to preserve affordable stock, but she emphasized the broader need to develop a more balanced national housing policy.

In order to afford the fair market rent on a two-bedroom apartment, a family needs to earn an average “housing wage” of $18.44 per hour, up from $17.84 in 2009, according to the NLIHC. Conversely, the estimated average hourly wage for renters in the US has declined from $14.69 last year to $14.44.

“There’s now a larger gap between what people earn and what they need to afford decent rental housing,” NLIHC research analyst Megan DeCrappeo said in Wednesday’s conference call. This situation prevails despite last year’s increase in the federal minimum wage, DeCrappeo said. At that minimum of $7.25 per hour, a household would need to work 102 hours per week in order to afford the average FMR of $959 per month on a two-bedroom unit, the NLIHC says.

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