Looking for an affordable rental market? Study says you're out of luck
That pressure is increasingly intense for those at the bottom. Of the 8.28 million Americans living below the federal poverty line in 2010, three-quarters were spending more than half their pay on housing, according to the housing coalition.
Most and least expensive states for renters, as compared to area wages
|State||Fair-market rent for a two-bedroom apartment||Hourly wage / Annual income needed to afford FMR 2 BR||Estimated mean hourly wage of renters||Full-time job at mean renter wage needed to afford a 2 BR||Full-time jobs at minimum wage of $7.25 needed to afford 2 BR||Rent that is affordable at mean renter wage|
|1. Hawaii||$1,647||$31.68 / $65,889||$13.61||2.3||4.4||$708|
|2. California||$1,353||$26.02 / $54,127||$17.68||1.5||3.3 (at state's $8 rate)||$920|
|3. New Jersey||$1,302||$25.04 / $52,081||$16.40||1.5||3.5||$853|
|4. Maryland||$1,291||$24.83 / $51,637||$15.06||1.6||3.4||$783|
|5. New York||$1,283||$24.68 / $51,337||$21.45||1.2||3.4||$1,115|
|U.S. national average||$949||$18.25 / $37,960||$14.15||1.3||2.5||$736|
|46. Mississippi||$622||$11.97 / $24,891||$10.03||1.2||1.7||$522|
|47. Kentucky||$616||$11.85 / $24,648||$10.76||1.1||1.6||$560|
|48. South Dakota||$599||$11.52 / $23,954||$9.61||1.2||1.6||$500|
|49. West Virginia||$598||$11.50 / $23,917||$9.88||1.2||1.6||$514|
|50. Arkansas||$593||$11.41 / $23,773||$10.83||1.1||1.6||$563|
* Source: The National Low Income Housing Coalition, "Out of Reach 2012."
* Fair-market rent (FMR) is the 40th percentile of gross rents for typical, non-substandard units.
* Average renter wages gauged from 2010 federal Bureau of Labor Statistics and American Community Survey data.
States and metros where housing breaks the bank for working families
|State||Number of working households||With a severe housing cost burden in 2010 (housing exceeds 50% of income)|
|1. California||4.9 million||34%|
|2. Florida||2.5 million||33%|
|3. New Jersey||1.14 million||32%|
|U.S. national average||45 million||23.6%|
|1. Miami-Fort Lauderdale-Pompano Beach, Fla.||714,000||43%|
|2. Los Angeles-Long Beach-Santa Ana, Calif.||1.68 million||38%|
|3. San Diego-Carlsbad-San Marcos, Calif.||417,500||37%|
|4. Riverside-San Bernardino-Ontario, Calif.||496,000||34%|
|5. New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.||2.6 million||34%|
Source: The Center for Housing Policy, "Housing Landscape 2012."
* Working household defined as those with at least 20 hours per week employment and income not exceeding 120% of the area's median income.
* Severe housing-cost burden defined as spending more than half the household's gross income on housing costs, including utilities.
But I can't pay the rent
Several MSN Real Estate readers have written to us about their struggles to make the rent. One is already more than two months behind. "What will happen?" they ask. What can they do?
The counselors at the Metropolitan Boston Housing Partnership get asked this every day, all day. "That's the main question we get here," Jordan says. "'I'm behind on my rent and I don't know what to do.'"
Here's what they tell people:
1. You have to find a way to pay the rent.
This isn't cold-hearted finger-waving. It's financial counseling aimed at preventing homelessness.
"The first thing I tell people is their goal is to have a sustainable income, and that's, of course, easier said than done," Jordan says. "You have to have a roof over your family's head."
This can mean help in any number of areas: finding job opportunities and boosting income, prioritizing spending to ensure the rent can get paid first, finding emergency funding sources or locating available affordable housing.
"There are tools and resources out there; you just have to know how to find them," says Christopher Blagg, a spokesman for the partnership.
This can be as simple as making a few local phone calls. The housing coalition provides links to its outreach organizations in each state, and suggests calling an elected official in your area. Staff members at such places should be able to recommend local programs.
2. Talk to the landlord or management company.
Landlords have bills to pay, too. They'll be a lot more sympathetic if you tell them what's going on and demonstrate a commitment to pay. Having a tenant counselor contact the landlord about setting up a payment plan may be particularly helpful.
"When I talk to landlords, I find they're more receptive than I anticipated," Jordan says. "A lot of times when I tell a landlord that I'm providing support, they're sympathetic because they know that the tenant is making a good effort. These negotiations break down when the parties are afraid to talk to each other."
- MSN Money: Is renting the new American dream?
3. Consider moving to affordable housing.
If continued downsizing just isn't possible, contact a local community development corporation for information on partially subsidized housing options. Be warned, though, there's a shortage of affordable housing and a long waiting list in most areas.
"It's not like affordable housing is going to come up as soon as the need is identified," Jordan says. "We talk about it as planning for the future. You want housing that is sustainable … you're allowing yourself choices in the future."
Please don't move to Florida...this is one of the worst States for unemployment, high rentals, foreclosures and the toughest, yes, rated the toughest on unemployment benefits. While some of the other hard nose States re unemployment at least give you a time period of denial ( after an appeal, denied, then so many weeks have to go by before you can apply again) Florida's denial is for the duration of unemployment after appeal denial. So when they brag about unemployment rates going down..it's because there are so many people that either gave up on job hunting or were denied benefits. There is no applying in person any more..it's all via internet here...then the companies can weed you out and not tell you why. And, yes, they can figure out your age.
I was terminated in January for an error in judegment that the corporation deemed to be a violation of company policy...after 15 stellar years of being an excellent employee. It never even went to my supervisor..a co-worker wrote a statement and it went straight to Quality and Assurance, the big brother of big business. My Union did not give me my 3rd step hearing that I'm promised..didn't even return my calls...because they do what the execs say to do. I have sent out 62 resumes and filled out as many applications..not even one interview!
So, I am living on what I sell on ebay and charity from family members By the way, I'm a middle aged widow living alone. I stopped paying my student loan which has ruined my credit...already did the deferment thing a couple of years ago when overtime hours ran out. I live as cheaply as I can...sometimes eating crackers and peanut butter for a week. I do receive a pittance for groceries...for which I'm thankful. I have an old phone, an older vehicle, and no frills...go nowhere to socialize. Did the roomate thing and they stole from me. Never again. The home I'm in is in foreclosure and going to be sold in July. Never saw any of this coming...have worked my entire life and again, went back to college...never could get promoted at work because one person high up blocked my chances...she didn't like me because I tried to change things for the better. Not making any excuses...it is what it is. Oh, and the charities that I gave to out of my check every week won't help me because I dont have small children..and one is out of money! As for buying my own home...when I was divorced many years ago I was denied because I was a risk...single mother. Then when I tried again the interest rates were so high I couldn't afford the payments ( Florida's low wages-Right to Work State), then when my credit was good again and I was getting better pay the down payment went sky high to make up for the low interest rates..but no one talks about that. If they lowered the down payments at these low interest rates you would see the housing market rebound and many would be able to experience the American Dream of owning a home. The the economy would do better because people would be spending money on their homes....but again, no one talks about that! I will never critisize anyone for what they have to do to survive..whatever job they have to do to feed their kids is okay by me It's always the people that are comfortable and have a home that speak against those that don't. Be careful...sometimes it's only one paycheck away.
After filtering through this posts I have say that I am shocked by what I have read . First, to those who say get a higher paying job. I would love to if nepotism wasn't at play. Or, the whole I know somebody who knows somebody. Also, I like the fact that some of you went on to say that getting a degree will help; to get out there and work, work! Well to let you all know I did get my degree; currently working on my bachelors. However, unless a relative of mine owns a company or a great friend has a position I can walk into FYI it's not going to happen.
So where does that leave me in job market???? Find anything that includes min wage PERIOD! So this is to the masses. When one of you say get a higher paying job or look for a higher paying job why don't one of you reach out to someone you DON'T know ; offer them a job since you are so PROUD and LOUD about making a lot of money. Give someone like myself who is in school; trying to make a dream happen only to see my dream handed to the person behind me because, he/she has an inside person to get them through the door.
I am sick and tired of people saying everyone wants a hand-out! That might apply to those on the street corner not for the rest us. Please keep that in mind when those of you feel the need to say, "All you want is a handout". As for my husband and myself we have cleaned and fixed up three properties since we have lived in Utah. Two landlords were slum lords; the third one at least paid for the supplies. I have the pictures to prove it. So not all renters destroy property either. Judging someone without knowing them is the worse. Shame on you that do~
Agreed with Rose. But, there are many factors at work, not the least of which is a congress more interested in themselves than their constituents, the same as the current, and previous, residents of 1600 Pennsylvania Ave.
In the community my family and I live in, the town assessor comes around just about every year, and our taxes go up. The housing market has gone down, the home values the bank will lend on go down, yet the taxes continue to rise. And we are not alone in this mess. Where my offspring was living, taxes were going up, jobs were disappearing overseas, and one of the couple lost their job. In their case, they had a safety net - my wife and I own two houses, one we were renting out. We took it off the rental market so the kids could have a roof over their heads. They moved up here, and both had full time jobs within six months. Yet, they still could not afford the rent we were getting for the house they now live in.
They are earning more than "minimum wage," and son-in-law has even earned a couple of promotions since starting a year and a half ago, daughter, one promotion in the same time. But with three kids, was four, but one moved out with her fiance to a different part of the country, they still can't afford the rent in this economically depressed area of the country. Only consolation for us, with the irresponsible politicians running this country and state, we probably will be long gone by the time anyone gets around to straightening things out..
People, get smart: VOTE OUT EVERY SINGLE INCUMBENT, REGARDLESS OF POLITICAL AFFILIATION. Then, let the replacements know they no longer work for their own reelection, they work for US, the citizens of THE UNITED STATES OF AMERICA. They don't work for China, they don't work for Haiti, they don't work for Mexico, THEY WORK FOR US.
So we all need to feel sorry for the people in this world who settled for a minimum wage job?! It's not the tax payers problem that some teenage girl made a personal choice to have kids and have the unsporting farther leave shortly after. Let me guess....the working people are supposed to pick up the slack?!
It's real simple. Get on craigslist and find a roommate to help split the rent. Yes, its probably not an ideal situation but it is what you chose by not choosing to better yourself!
It's time for our government to finally pull it's head out of it's bum and stop working for their respective political parties and start working for our country. If it doesn't start to happen very soon then change will come... and blood will flow... because that's the nature and way significant change. Not always, but usually, and it won't be without just cause.
When jobs don't pay enough and basic needs (and there are few things more basic than ones home) can't be reasonably obtained people will only suffer those conditions for so long before they begin to take action. That action has already begun and it is a foolish person, rich or poor, left or right, black or white, that ignores or dismisses the current and rising level of discontent in our nation.
The time for placing blame is over. It's time to actually start doing something constructive.
I guess if the business you started had no workers you could have made it work all by your self? Just as important as you paying the bills at that business it was just as important to PAY THE WORKERS and you paid the utilities their fair price so why not PAY THE WORKERS THEIR FAIR PRICE. You sound like workers are slaves who accept what you want to give them. STOP THE HATE!!
I served 13.5 yrs in the Navspecwarcom and your post is full of holes!! Just get a good accountant and most of your expenses are business write offs!! Now that should burst your bubble VET!! Don't rely on 6 yrs. fool!! Rely on your brain!!