THIRD WORLD USA
The average minimum wage worker has to work more than 2 full-time jobs to afford a 2-bedroom rental in any state in the US
A woman wears a T-shirt reading "One Job Should be Enough" during a rally calling for an increase in the minimum wage on Oct. 2, 2019, in Miami. AP Photo/Lynne Sladky
The average minimum wage worker in the US would need to work at least two jobs in order to afford rent in any US state, according to the annual "Out of Reach" report by the National Low Income Housing Coalition.
The average minimum wage worker in the US would need to work at least two jobs in order to afford rent in any US state, according to the annual "Out of Reach" report by the National Low Income Housing Coalition.
The minimum wage to afford a two-bedroom rental in 2020 is $23.96 per hour and $19.56 for a one-bedroom rental, according to the report.
The report was published amid an unprecedented health crisis, the economic impact of which has left millions of Americans without a job.
The researchers behind the report called on the federal government to take more action to "secure affordable homes" by funding federal rental housing programs, especially amid the coronavirus pandemic.
Full-time minimum wage workers can't afford to rent a two-bedroom rental in any state in the US, according to the annual "Out of Reach" report by the National Low Income Housing Coalition (NLIHC).
A MINIMUM WAGE SHOULD BE $15 AN HOUR
A LIVING WAGE IS $25 AN HOUR
The coalition also found 95% of minimum wage workers cannot afford a one-bedroom rental.
The minimum wage to afford a two-bedroom rental in 2020 is $23.96 per hour and $19.56 for a one-bedroom rental, according to the report. However, the hourly wage of the average renter is $18.22, which is still $5.74 less than what is needed to afford a two-bedroom rental and $1.34 less to afford a one-bedroom.
The average full-time minimum worker needs to work at least 97 hours to afford a two-bedroom rental or 79 hours per week to afford a one-bedroom rental, according to the report.
"People who work 97 hours per week and need 8 hours per day of sleep have fewer than 2.5 hours per day left over for everything else — commuting, cooking, cleaning, selfcare, caring for children and family, and serving their community," the analysts behind the report wrote.
As the national housing wage becomes increasingly unattainable for minimum wage workers, the economic impact of the coronavirus pandemic has left millions without a job.
The coalition also found 95% of minimum wage workers cannot afford a one-bedroom rental.
The minimum wage to afford a two-bedroom rental in 2020 is $23.96 per hour and $19.56 for a one-bedroom rental, according to the report. However, the hourly wage of the average renter is $18.22, which is still $5.74 less than what is needed to afford a two-bedroom rental and $1.34 less to afford a one-bedroom.
The average full-time minimum worker needs to work at least 97 hours to afford a two-bedroom rental or 79 hours per week to afford a one-bedroom rental, according to the report.
"People who work 97 hours per week and need 8 hours per day of sleep have fewer than 2.5 hours per day left over for everything else — commuting, cooking, cleaning, selfcare, caring for children and family, and serving their community," the analysts behind the report wrote.
As the national housing wage becomes increasingly unattainable for minimum wage workers, the economic impact of the coronavirus pandemic has left millions without a job.
A rental sign is posted in front of an apartment complex Tuesday, July 14, 2020, in Phoenix. Housing advocacy groups have joined lawmakers lobbying Arizona Gov. Doug Ducey to extend his coronavirus-era moratorium on evictions when it expires, when the 120-day order ending July 22 was supposed to ensure people would not lose their homes if they fell ill to COVID-19 or lost jobs in the pandemic's economic fallout. (AP Photo/Ross D. Franklin) Associated Press
"The economic downturn spurred by the virus further increases the risk of housing instability for millions of low-wage renters at a time when stable housing is vital," they wrote. "Millions of renters were one financial shock away from housing instability, and for many the pandemic and economic fallout is that shock."
The researchers behind the report called on the federal government to take more action to "secure affordable homes" by funding federal rental housing programs, especially amid the unprecedented health crisis.
"Housing is a basic necessity – an essential ingredient of individual and public health, stability, and dignity," the analysts wrote. "The COVID-19 crisis has demonstrated the recklessness of letting people's access to basic necessities like housing depend on the contingencies of the economy."
Congress has attempted to pad the financial ramifications of the pandemic by passing the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, a $2 trillion economic stimulus bill.
In May, the House of Representatives passed a $3 trillion coronavirus relief bill in May dubbed the HEROES Act, which stands for the Health and Economic Recovery Omnibus Emergency Solutions Act. The bill, however, is not expected to pass in the GOP-controlled Senate. Senate Majority Leader Mitch McConnell called the bill a "big laundry list of pet priorities" that has "no chance of becoming law."
Last month, the House passed another relief bill specifically geared towards housing affordability, known as the Emergency Housing Protections and Relief Act of 2020.
"The bill allocates $100 billion towards emergency rental assistance, establishes a $75 billion fund for homeowners, and extends an eviction and foreclosure moratorium," Business Insider's Rosie Perper reported.
A minimum-wage worker needs 1.5 jobs just to afford half the rent for a 2-bedroom apartment in most of the US
Hillary Hoffower and Andy Kiersz
Jan 30, 2019
"The economic downturn spurred by the virus further increases the risk of housing instability for millions of low-wage renters at a time when stable housing is vital," they wrote. "Millions of renters were one financial shock away from housing instability, and for many the pandemic and economic fallout is that shock."
The researchers behind the report called on the federal government to take more action to "secure affordable homes" by funding federal rental housing programs, especially amid the unprecedented health crisis.
"Housing is a basic necessity – an essential ingredient of individual and public health, stability, and dignity," the analysts wrote. "The COVID-19 crisis has demonstrated the recklessness of letting people's access to basic necessities like housing depend on the contingencies of the economy."
Congress has attempted to pad the financial ramifications of the pandemic by passing the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, a $2 trillion economic stimulus bill.
In May, the House of Representatives passed a $3 trillion coronavirus relief bill in May dubbed the HEROES Act, which stands for the Health and Economic Recovery Omnibus Emergency Solutions Act. The bill, however, is not expected to pass in the GOP-controlled Senate. Senate Majority Leader Mitch McConnell called the bill a "big laundry list of pet priorities" that has "no chance of becoming law."
Last month, the House passed another relief bill specifically geared towards housing affordability, known as the Emergency Housing Protections and Relief Act of 2020.
"The bill allocates $100 billion towards emergency rental assistance, establishes a $75 billion fund for homeowners, and extends an eviction and foreclosure moratorium," Business Insider's Rosie Perper reported.
A minimum-wage worker needs 1.5 jobs just to afford half the rent for a 2-bedroom apartment in most of the US
Hillary Hoffower and Andy Kiersz
Jan 30, 2019
To afford a two-bedroom apartment, a minimum-wage worker would need to work about 122 hours a week. Jeff Greenberg/Getty Images
Many minimum-wage workers can't afford a modest two-bedroom apartment, according to the National Low Income Housing Coalition's annual report.
The national housing wage for a modest two-bedroom rental apartment is $22.10, while the federal minimum wage is $7.25.
A low-income worker earning the federal minimum wage would need three jobs to afford a two-bedroom apartment — or 1.5 jobs and a roommate.
A minimum-wage worker needs 2.5 full-time jobs to afford a one-bedroom apartment in most of the US, according to the National Low Income Housing Coalition's (NLIHC) annual report.
But that's nothing compared to how many jobs they'd have to work to afford a two-bedroom rental apartment in most of the US — three.
However, that's only if they're living in a two-bedroom alone or are the only working spouse bringing home a check. It's likely they have a partner or roommate living there as well, in which case they would split the rent. If both residents are minimum-wage workers, they would need to work 1.5 jobs each to afford rent.
The report looked at the "housing wage," an estimate of the hourly wage a full-time worker — working 40 hours a week, 52 weeks a year — needs to earn to afford a rental home at the US Department of Housing and Urban Development's fair-market rent. That's defined as spending no more than 30% of their income on housing costs — experts' rule of thumb when budgeting for housing.
NLIHC found that the national housing wage for a two-bedroom rental apartment is $22.10. That's slightly more than three times the federal minimum wage of $7.25.
The map below shows the hourly wage needed to afford a fair-market rent, two-bedroom apartment by state, assuming a 40-hour work week, 52 weeks a year, as calculated by the NLIHC.
Many minimum-wage workers can't afford a modest two-bedroom apartment, according to the National Low Income Housing Coalition's annual report.
The national housing wage for a modest two-bedroom rental apartment is $22.10, while the federal minimum wage is $7.25.
A low-income worker earning the federal minimum wage would need three jobs to afford a two-bedroom apartment — or 1.5 jobs and a roommate.
A minimum-wage worker needs 2.5 full-time jobs to afford a one-bedroom apartment in most of the US, according to the National Low Income Housing Coalition's (NLIHC) annual report.
But that's nothing compared to how many jobs they'd have to work to afford a two-bedroom rental apartment in most of the US — three.
However, that's only if they're living in a two-bedroom alone or are the only working spouse bringing home a check. It's likely they have a partner or roommate living there as well, in which case they would split the rent. If both residents are minimum-wage workers, they would need to work 1.5 jobs each to afford rent.
The report looked at the "housing wage," an estimate of the hourly wage a full-time worker — working 40 hours a week, 52 weeks a year — needs to earn to afford a rental home at the US Department of Housing and Urban Development's fair-market rent. That's defined as spending no more than 30% of their income on housing costs — experts' rule of thumb when budgeting for housing.
NLIHC found that the national housing wage for a two-bedroom rental apartment is $22.10. That's slightly more than three times the federal minimum wage of $7.25.
The map below shows the hourly wage needed to afford a fair-market rent, two-bedroom apartment by state, assuming a 40-hour work week, 52 weeks a year, as calculated by the NLIHC.
Every state's housing wage, or the hourly pay needed to afford a two-bedroom rental. Andy Kiersz
If a worker held three full-time minimum-wage jobs, they'd be earning $21.75, just under the $22.10 needed to afford rent and have 70% of income left over for other expenses. They would have to work about 122 hours a week, 52 weeks a year, just to cover rent, according to the report. To put that in perspective, there are 168 hours in the week — that leaves them with only 46 hours, less than two days, of nonwork time.
There is no state in which a minimum-wage worker can afford a two-bedroom rental home by working a standard 40-hour work week, according to the report.
This is true even in Arkansas, which has the lowest housing wage of $13.84. The state has a minimum wage of $8.50, which means workers would need to work a full-time job and a part-time job, or 65 hours a week, to afford a two-bedroom apartment.
Fourteen states have a housing wage exceeding the national housing wage of $22 — Washington, Alaska, California, Colorado, Hawaii, Virginia, Maryland, New Jersey, New York, Connecticut, Massachusetts, Vermont, and New Hampshire, plus Washington, DC.
Of all these states, Hawaii is the most expensive with a $36.13 housing wage. Here, workers earn a minimum wage of $10.10. With three jobs, that's $30.30 — more than the national housing wage, but still not enough to afford a two-bedroom apartment in the state. A worker in Hawaii would need to work nearly four full-time jobs, or 143 hours a week, to afford a two-bedroom rental
If a worker held three full-time minimum-wage jobs, they'd be earning $21.75, just under the $22.10 needed to afford rent and have 70% of income left over for other expenses. They would have to work about 122 hours a week, 52 weeks a year, just to cover rent, according to the report. To put that in perspective, there are 168 hours in the week — that leaves them with only 46 hours, less than two days, of nonwork time.
There is no state in which a minimum-wage worker can afford a two-bedroom rental home by working a standard 40-hour work week, according to the report.
This is true even in Arkansas, which has the lowest housing wage of $13.84. The state has a minimum wage of $8.50, which means workers would need to work a full-time job and a part-time job, or 65 hours a week, to afford a two-bedroom apartment.
Fourteen states have a housing wage exceeding the national housing wage of $22 — Washington, Alaska, California, Colorado, Hawaii, Virginia, Maryland, New Jersey, New York, Connecticut, Massachusetts, Vermont, and New Hampshire, plus Washington, DC.
Of all these states, Hawaii is the most expensive with a $36.13 housing wage. Here, workers earn a minimum wage of $10.10. With three jobs, that's $30.30 — more than the national housing wage, but still not enough to afford a two-bedroom apartment in the state. A worker in Hawaii would need to work nearly four full-time jobs, or 143 hours a week, to afford a two-bedroom rental
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