Wednesday, Mar 13 2013 4:25PM
The gap is growing between rising rental rates and low wages.
Low-income workers are finding it increasingly difficult to meet their rent and living costs as the gap between wages and rents widens, according to the National Low Income Housing Coalition (NLIHC).
The NLIHC's 2013 Out of Reach study found that in order to afford a decent apartment listed on the U.S. Department of Housing and Urban Development's estimated Fair Market Rent report, the full-time hourly wage must be at least $18.79. However, the average renter earns an hourly wage of $14.32, which makes it difficult for renters to keep up with their monthly payments while also meeting their other living needs, the report found.
The report noted that this is a persistent problem and underscored the need for more affordable housing assistance, as well as the construction of more low-income housing developments. A lack of affordable housing assistance may increase poverty rates and leave more families vulnerable to financial problems.
A 2012 Trulia study found that national rental rates in October increased 5.1 percent on a year-over-year basis, and some states experienced double-digit increases in prices. This trend is expected to continue in 2013, with states such as California seeing a significant hike in rent prices.
For more information, check out this resource: The National Low Income Housing Coalition