Out of Reach

Out of Reach 2002
Press Release
EMBARGOED UNTIL 11 A.M. EASTERN TIME, SEPTEMBER 18, 2002
Contact: Kim Schaffer, National Low Income Housing Coalition, 202-662-1530 x230, kim@nlihc.org

Housing Costs Out of Reach for Many
2002 National Housing Wage is $14.66

Across the country, a person working full-time has to earn an average of $14.66 an hour -almost three times the federal minimum wage of $5.15-to be able to afford to rent a modest two-bedroom home, according to a report released today by the National Low Income Housing Coalition.

Each year with the release of Out of Reach, the Washington, DC-based group calculates the "housing wage" - the amount a full-time worker has to earn to be able to afford a two-bedroom rental home at the fair market rent while paying no more than 30% of his or her income in rent-for every state, region and county.

For the fourth year in a row, there is no jurisdiction in the United States in which a full-time job at the prevailing minimum wage (either federal or
state) provides enough income to allow a household to afford a two-bedroom home at the region's fair market rent.

While the inflation rate for 2001 was 1.6%, the national housing wage increased by 5% between 2001 and 2002.

"We look forward to the day when we can report that the housing wage is decreasing and the gap between rents and incomes is narrowing. Unfortunately for the millions of low-wage people in America, 2002 is not that year," said NLIHC President Sheila Crowley.

According to the Bureau of Labor Statistics, 2.24 million Americans earned the federal minimum wage or less in 2001.  More than 60% of minimum wage workers are family heads or their spouses.

Many millions more earn their state's slightly higher minimum wage or otherwise earn a wage that is well below the housing wage for their region.

"The gap between housing costs and income that makes rents so out of reach for families also adversely affects all aspects of family life, from affording basic necessities, to achievement in school, to success in the workplace," Crowley said. "For things to improve, the federal government must reestablish itself as a leader in solving this problem."

The least affordable Metropolitan Statistical Areas (MSAs) and their housing wages are:

  1. San Francisco, CA, $37.31
  2. San Jose, CA, $33.85
  3. Stamford-Norwalk, CT, $27.62
  4. Oakland, CA, $26.42
  5. Boston, MA-NH, $25.83
  6. Santa Cruz-Watsonville, CA, $24.96
  7. Nassau-Suffolk, NY, $24.52
  8. Westchester County, NY, $23.88
  9. Orange County, CA, $22.21
  10. Santa Rosa, CA, $21.65
Senator Paul Sarbanes (D-MD) and Representatives Barney Frank (D-MA), Bernie Sanders (I-VT) and Christopher Shays (R-CT) released Out of Reach 2002 at a Wednesday morning press conference in Washington.

The complete report, including data for every jurisdiction in the country, is available at http://www.nlihc.org

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Note: Fair Market Rents are calculated and used by HUD to assess affordability, and for most areas of the country are set at the 40th percentile rent for the area; that is, the rent at which 40 percent of the standard quality rental homes rent below.

Established in 1974, the National Low Income Housing Coalition is dedicated solely to ending America's affordable housing crisis. NLIHC educates, organizes and advocates to ensure decent, affordable housing within healthy neighborhoods for everyone. NLIHC provides up-to-date information, formulates policy, and educates the public on housing needs and the strategies for solutions.
 

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