Minimum Wage Workers Can't Afford a Two-Bedroom Apartment Anywhere in the U.S.

​Housing affordability, especially among US workers earning minimum wage, continues to be a crisis, according to a report from the National Low Income Housing Coalition (NLIHC).

The report states that nowhere in the country can those earning minimum wage afford a “modest two-bedroom rental home at fair market rent by working a standard 40-hour work week.”

This will not help to “solve the housing affordability crisis,” the report states.

Furthermore, NLIHC found that in only 7% of counties nationwide, not including Puerto Rico, can a full-time minimum-wage worker afford a one-bedroom rental home at fair market rent.

These counties are in states with a minimum wage higher than the federal minimum wage of $7.25 per hour. In fact, 66 counties and municipalities have minimum wages higher than the federal or, where applicable, state minimum wage, but in each of these jurisdictions, the local minimum wage falls short of the local one-bedroom and two-bedroom.

Housing industry advocacy groups continue to seek solutions. This week, the National Multifamily Housing Council met with the Home Guarantee Campaign to learn more about their priorities and personal stories.

While the meeting was unscheduled, the discussion confirmed the mutual desire between the two to see an increase in the supply of affordable housing.

“The reality is that there is so much more we agree on than disagree on in the pursuit of solving the nation’s housing affordability challenges,” Cindy Chetti, NMHC’s Senior Vice President of Government Affairs, said in prepared remarks.

“Whether it’s increasing the funding for critical rental assistance programs such as the Housing Choice Section 8 Voucher, or increasing the Low-Income Housing Tax Credit, and creating a Middle-Income Housing Tax credit, we must work together to convince policymakers to provide the funds so that those in need have the resources necessary to live their lives.”

The private sector is also making strides in this space, although admittedly not to the extent of addressing the problem.

A month ago, GlobeSt.com reported that apartment developer Greystar Real Estate Partners would launch a new dedicated brand, Ltd. by Greystar, that will exclusively focus attainable housing opportunities for key populations affected by the lack of rental options in the United States.

The homes will have a sustainable, modular construction, be built off-site, and be offered at an attainable price point.

Earlier this month, GlobeSt.com reported that Hillpointe, a real estate development and investment firm focused on the development of market-rate workforce housing, closed the Hillpointe Workforce Housing Partnership IV at its hard cap of $510 million.

The fund is aimed at developing 25 to 30 workforce housing communities, totaling 8,000 units.

The struggle to afford rental housing is not confined to minimum-wage workers, according to the report.

“The wage distribution, which includes all wage and salary workers, shows that modest rental housing is out of reach for nearly every worker in the bottom half of the wage distribution,” NLIHC said.

“Nearly 50% of wage earners cannot afford a modest one-bedroom rental home at the fair market rent while working one full-time job. At least 60% of wage earners cannot afford a modest two-bedroom rental home while working one full-time job.”