The average minimum wage worker needs two-and-a-half full-time jobs in order to afford a one-bedroom apartment in most parts of the country.
That comes from the National Low Income Housing Coalition’s annual report, which states that the minimum hourly wage needed to be able to afford a modest one-bedroom apartment is $17.90 which is two-and-a-half times the federal minimum wage of $7.25.
Rents Outpace Wages
Meanwhile, rents have been going up more than three times as fast as wages.
Across the country, rents have risen 7 percent on average over the past year; over the same time period, wages have barely grown more than 2 percent over the same time period.
There hasn’t been any increase in the federal minimum wage over this time period either.
Windows of Affordability
Note, however, that about 22 different counties in the U.S. have higher minimum wages that in some locations make one-bedroom apartments affordable.
The 22 counties fall within five states — Arizona, California, Colorado, Oregon, and Washington.
While all five have higher minimum wages than the federal average, rents are also above average in the more urban parts of these states.
Readers, how do these findings compare to rents and wages where you live?
If you liked this article, you just might enjoy these other items from our archives:
- QUIZ: Can You Make It on Minimum Wage?
- Ways a $10 Minimum Wage Would Help Employees
- Preliminary Basic Budget Minimum Wage Challenge
- 10 Housing Markets That are Still Affordable
- The Most Affordable Places to Live in the U.S.
- 10 Things You Can Do If You Can’t Sell Your House
- Will Student Loan Debt Keep You from Buying a Home?
- Keep Cool Without Overspending This Summer
- Home Prices Outpace Pay Increases
- How Can Single People Afford To Buy Homes?
- More Homebuyers Stretch Toward Excessive Debt
- Inventory of Homes for Sale Hits Record Low
If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.