Rises in rent are found to outpace some wages

December 14, 2005|Stephen Ohlemacher, Associated Press

WASHINGTON -- The cost of rental housing has increased more rapidly than have wages, making it increasingly difficult for low-income families to afford even modest apartments, an advocacy group said yesterday.

''The picture is similar to past years, but it's getting worse," said Danilo Pelletiere, research director of the National Low Income Housing Coalition.

The coalition, which advocates for more affordable housing, issues a report tracking rental costs in every state, county and metropolitan area in the country.

It says families should spend no more than 30 percent of their incomes on housing and utilities. Under that standard, the coalition said it could not find a single county in the United States where a full-time worker making minimum wage could afford a one-bedroom apartment.

In reality, the report found, many low-income families spend a far larger share on housing.

Hawaii has the most expensive rental costs, followed by California, Massachusetts, New Jersey, and New York. California also had eight of the 10 most expensive counties for rental housing.

West Virginia had the most affordable rents, followed by Arkansas, North Dakota, Alabama, and Mississippi.

Nationally, families have to make an average of $15.78 an hour to afford a two-bedroom apartment, while spending no more than 30 percent of their earnings on housing costs. That is up from $15.37 a year ago.

The federal minimum wage, at $5.15 an hour, was last increased in 1997. Fifteen states have minimum wages higher than the federal level.

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