Minimum wage not enough to afford even modest housing
May 26, 2015
The “national housing wage” – the hourly wage a person working 40 hours per week would need to earn to afford a modest, two-bedroom rental unit – is $19.35, according to the National Low Income Housing Coalition (NLIHC).
That figure, at nearly three times the federal minimum wage, means that a minimum wage earner would need to work 86 hours weekly to afford a one-bedroom apartment, and 107 hours per week to afford a two-bedroom apartment.
More, according to the NLIHC’s “Out of Reach 2015” report, there is no state in the U.S. where someone earning the minimum wage can afford housing while working 40 hours per week or less. The findings underscore the need for more affordable housing in every state, metro area and county across the United States, and helps illustrate the risks people face for homelessness.
With so many living at or near the minimum wage, all it takes is one financial hiccup – a medical malady, car problem, etc. – to upend a family’s living situation. It’s a problem the Family Stabilization Program here at Family & Children’s Place sees all too often.
To read the full report, visit outofreach2015.com.