Uncertainty in affordable housing keeps increasing as rents climb at record speed. Many Americans find their wages not enough to keep up with inflation.
An average worker in the US working on a 40- hour week will need to earn at least $21.25 an hour for a one-bedroom apartment. A two-bedroom home, one requires $25.82 an hour, as per a report by an advocacy group known as National Low Income Housing Coalition.
Every US state has a higher home rent cost and exceeds the current minimum wages. For example, workers in Arkansas need to earn at least $ 14.89 an hour to afford a two-bedroom apartment. However, the state does not have a law for minimum wage, and workers earn the federal minimum of $7.25.
Too High
California and other states have increased their minimum wages across the country; still, rent is more than income growth. Maxine Waters is the Democrat Representative from California and Chairwoman of the US House Committee on Financial Services. She says that housing costs outpace income increases. She feels it is unreasonable for a country like the US, with its resources, to ignore its housing crisis.
Waters observed California’s $15 minimum wage is only 50 % of what a person will need for a one-bedroom apartment. Workers would be required to earn $39.01 an hour for a two-bedroom apartment. California alone has seven of the ten most expensive areas for a two-bedroom apartment.
According to the advocacy group report, low-income renters burdened by the high rental costs account for eighty-six percent. Those who are severely cost burdened in the low-income renter are 72 %.
Households who spend more than 30% of their income on utilities and rent are burdened by housing costs. Despite the high rent remaining out of reach for many Americans, it remains cheaper burdened to rent than buy a home.
