Following on reports earlier this week about low-income Americans losing pace with housing costs, the National Low Income Housing Coalition is releasing a new report showing the gap is widening between minimum wage earners and rental housing costs.

The report, "Out of Reach," says its survey of every major market in the country shows there is no where that a worker earning minimum wage can afford the fair market rent for homes in their community.

"In order to afford the 'median fair market rent' of a two-bedroom unit in the United States, a worker would have to earn a housing wage of $12.47 per hour - 242 percent of the current federal minimum wage of $5.15 per hour," the coalition says.

"A worker earning minimum wage would have to work 97 hours per week in order to afford the median fair market rent for a two-bedroom rental unit, or a household must have the equivalent of two and a half minimum wage workers to be able to pay for basic housing."

Earlier this week REALTY TIMES reported on a study by Northeast University in Boston decrying the shortage of affordable housing in the Boston area, and calls by Cardinal Bernard Law for construction of 36,000 new dwellings within the next five years.

The new report will add fuel to criticism that communities, developers, builders and brokers are boosting prices so high that low and moderate income Americans cannot afford to live in the nation's cities.

"In more expensive areas of the country, housing is even less affordable to low-wage workers," the housing coalition said.

"The housing wage necessary to afford a two-bedroom unit in San Francisco is $28.06, and a minimum wage worker must work 195 hours per week to afford the median rent. In the Stamford-Norwalk, Conn., area those numbers are $22.62 and 147 hours.

"Despite the fact that these are two states that have passed higher minimum wage laws that the Federal standard, minimum wages still fall far short of making housing affordable for law wage workers."

The coalition studied every county in the country and found no area where minimum wage workers could afford the median rent. It said the gap was even greater between what the elderly and disabled could afford, compared to average rents.

Shelia Crowley, president of the Coalition, praised Congress for considering rising the minimum wage, but said that alone was not enough.

"Congress must also use the opportunity afforded by this era of unprecedented surpluses in the Federal Treasury to provide more housing assistance to the families who need it most," she said.

"Proposals supporting a multi-pronged housing policy strategy of preservation of existing public and assisted housing, production and new housing, and expansion of tenant based assistance , as well as policies that improve incomes for low income people so that they can better afford existing housing, should be at the top of the congressional agenda."

Published: September 20, 2000

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