Rental Costs Continue to Climb, Pricing Millions of Working Americans Out of Their Own Housing Markets

December 12, 2006

FOR IMMEDIATE RELEASE: December 12, 2006
Contact: Nicole Letourneau (202) 662-1530 x 227 nicole@nlihc.org

The cost of affordable rental housing climbed again in 2006, out pacing the wages of those who need it most. The national two-bedroom Housing Wage climbed to $16.31 for 2006, up from $15.78 last year. This is the hourly wage a full time worker must earn in order to afford a two-bedroom home at his or her community's Fair Market Rent (FMR).

The National Low Income Housing Coalition's (NLIHC) annual Out of Reach report, released on December 12, provides data for every state, metropolitan area and county in the country showing how much a household must earn to afford a modest market-rate rental home. The report also provides local wage and income data for comparison purposes.

"Every year it is becoming more difficult for low income families to find decent homes they can afford," said NLIHC President Sheila Crowley. "As we approach the holiday season with its intense focus on consumer spending, Out of Reach shows the difficulty that millions of low-income families face to even pay for their homes."

While the national two-bedroom Housing Wage stands at $16.31, in 2005, the most recent year for which data are available, the median hourly wage for all workers was $14 and the estimated average renter wage was $12.64. The problem is particularly stark for the lowest wage earners, including those who earn just the minimum wage, even in states that have higher minimum wages than the federal minimum wage, which has been stalled at $5.15 since 1997. Minimum wage earners are unable to afford even a one-bedroom home anywhere in the country, and 88% of renters in cities live in areas where the FMR for a two-bedroom rental is not affordable even with two minimum wage jobs.

Congressman Barney Frank (D-MA), incoming Chair of the House Financial Services Committee, the committee in Congress that deals with housing policy, joined NLIHC in releasing the report.

Congressman Frank wrote in the report's preface, "Unfortunately, for the past few years, affordable housing for low income people has not only been ‘out of reach,' it has been ‘out of sight.' That is, it has been off the national agenda because the people in control of the Congress have blocked any efforts to revive federal programs for the construction of affordable housing. I have enjoyed working with the National Low Income Housing Coalition during my years in the Congress because of the passion and accuracy of its advocacy. I look forward to continuing that collaboration...so that we can begin to put in place the public policies that are called for by the statistics set forth here."

Extensive data for every state, metropolitan area and county in the country are available online, at www.nlihc.org/oor/oor2006/. Ranking tables are also available at the website, as is further analysis and explanation of the data.

Established in 1974 by Cushing N. Dolbeare, the National Low Income Housing Coalition is a membership organization dedicated solely to ending America's affordable housing crisis. NLIHC educates, organizes and advocates to ensure decent, affordable housing within healthy neighborhoods for everyone.