Last year the demand for rental housing reached the highest level ever since the 1960’s, raising rent averages and making it’s harder for the average American to afford a modest rental.
A new report by the National Low Income Housing Coalition found that in 2016 an average worker in the U.S. needs to make approximately $20.30 per hour to rent a typical two-bedroom apartment, without devoting more than 30 percent of their income to housing costs.
The report analyzed the gaps between minimum wage and the average income needed in each of the 50 states.
Hawaii was ranked the highest hourly wage requirement at $34.22 per hour needed to rent a two bedroom accommodation.
Alaska also ranked among the most expensive states, with the report estimating that an average Alaskan needs to make $23.25 per hour for a two-bedroom.
The report by the NLIHC also found that even a one bedroom apartment is out of reach for poor Americans if they only work a minimum wage job for forty hours a week.
Many might say this is an indication that minimum wage needs an increase, despite many expensive states already offering minimum wage rates above the federally mandated minimum wage.
However, Department of Housing and Urban Development Secretary Julian Castro states in the preface of the report that while raising minimum wages in states would narrow the gap some, the real solution is investment in affordable housing supply.
