Out of Reach 2010
shows that despite a deep recession, rents continue to rise. At the same time,
the average wages renters earn are actually decreasing. The estimated average
renter wage in the United
States is only $14.44, a full $4 below the
national Housing Wage and down from $14.69 last year.
Furthermore, even though the federal minimum wage increased
from $6.55 to $7.25 in the summer of 2009, a minimum wage worker would still
need to work 102 hours a week in order to afford the two-bedroom FMR. There is
no county or metropolitan area in the United States in which a household
earning the minimum wage can afford the FMR for even a one-bedroom apartment.
The findings of this year's research were reviewed by NLIHC
Research Analyst Megan DeCrappeo and Research Director Danilo Pelletiere in a
press conference on April 21. Also speaking at the press conference was Dean
Baker, co-director of the Center for Economic and Policy Research, who
highlighted troubling national trends on employment and wages, noting that the
situation is not likely to improve any time soon. He pointed to the slow growth
rate in the job market and stagnating wages as indicators that the current
difficulties facing low wage households are likely to continue for the next few
years.
Mr. Baker and NLIHC President Sheila Crowley each discussed
the need for housing policies that address the longstanding shortage of
affordable housing. Both stressed the need for more balanced housing policies,
instead of the current situation in which the vast majority of housing
subsidies and tax credits go to high-income homeowners rather than low income
renters. Ms. Crowley also urged Congress to capitalize the National Housing
Trust Fund, in order to provide communities with funds to build homes for
people with the lowest incomes.
"Clearly, the time to act is now. We must take steps to
provide safe, decent, and affordable homes for the lowest income families
across the country," Ms. Crowley said. "Providing $1 billion for the National
Housing Trust Fund will help address the growing shortage of affordable
housing, which is one of the most serious economic problems facing the
country."
In addition to providing national data, the report compares
the cost of rental housing with household incomes, each state's minimum wage,
and average renter wages for each state, metropolitan area, and county in the
country. The introduction to Out of Reach 2010 connects the new local data
to the current recession, provides state-level findings, and provides several
tables showing rankings among states and regions.
A number of NLIHC's state partners also held media events
in conjunction with the release of the report.
Read the full report.
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