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Minimum Wage in U.S. Cities Not Enough to Afford Rent, Report Says

Minimum Wage in U.S. Cities Not Enough to Afford Rent, Report Says

San Francisco was the most expensive metropolitan area highlighted in a new report by the National Low Income Housing Coalition, requiring a household to make $  39.65 an hour to afford a two-bedroom apartment.

A San Francisco household would need to make $ 39.65 an hour to afford the market rent for a two-bedroom apartment, according to a new report that highlights a wide gap between stagnant incomes and rising rents in many parts of the country.

Around the country, renter households would need to make $ 19.35 an hour working full time to afford a two-bedroom unit, which is $ 4 more than the estimated average wage of U.S. workers, according to the report released Tuesday by the National Low Income Housing Coalition.

Rental affordability has grown as a challenge in recent years due to a number of factors, including increasing demand as more people choose to rent or are forced to because they can’t get mortgages; a relative lack of rental construction in recent years in comparison to past cycles; and stagnant wage growth.

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There is no state in the country where someone earning either the state or federal minimum wage can afford a market-rate one-bedroom apartment, according to the report. A minimum wage worker would need to work 86 hours per week to afford a one-bedroom apartment.

The researchers looked at much a family would need to make to keep its rental costs at a reasonable level–30% of its income–to afford rent and utilities on a modest rental unit in a short amount of time, as defined by the Department of Housing and Urban Development.

San Francisco was the most expensive metropolitan area, followed closely by Stamford-Norwalk in Connecticut, where a typical two-bedroom apartment demands that income earners in the household make a combined $ 37.37 an hour working full-time, according to the report.

The most difficult state in which to afford rent was Hawaii, where a household would need to make $ 31.61 an hour to afford a two-bedroom rental, meaning you would need to work more than 4 full-time jobs at minimum wage to afford an apartment.

Close behind were Washington, D.C., where households need to earn $ 28.04 to afford a two-bedroom apartment, and California, where rent demands a household earn $ 26.65 an hour. In both of those places, households would need to work three minimum-wage jobs to make rent on a two-bedroom home.

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