For 10 years now, the National Low Income Housing Coalition has issued annual reports on the affordability of rental housing in the U.S. It’s just released the latest. And the news is not good–either nationwide or here in the District of Columbia.
No surprise, given what we read in the papers and in other reports, like the recent update from the Center on Housing Policy. But NLIHC provides a unique perspective and alarming figures.
Though the rental unit vacancy rate is up, demand is also up, due to the continuing foreclosure and employment crises. And though, in most states, the minimum wage increased last year, there is still no state in which someone working full-time, year-round at a minimum wage can afford even a one-bedroom apartment at the applicable fair market rent. (The affordability measure here is the U.S. Department of Housing and Urban Development’s standard 30% of income.)
The news is even worse for extremely low-income people, i.e., those whose incomes are at or below 30% of the median average for their area. Nationwide, there are an estimated 9.2 million renters in this category. But, according to the latest NLIHC survey figures, there are only 3.4 million available units they could afford. Seventy-one percent of extremely-low income renters pay more than half their total income for rent.
The figures are new, but the problem isn’t. As NLIHC notes, the affordable housing stock has shrunk–down 6.3% between 2001 and 2007. Meanwhile, high-cost rental stock has increased 94.3%. So the vacant units now available are mostly well beyond the affordability range for the growing number of low-income households.
As in the past, NLIHC has an online tool, plus some ranking tables to let us zero in on key data for every major metropolitan area and combined non-metropolitan areas, by state. So here’s the latest for the District.
- A household would have to have an income of $59,760 a year to afford a FMR two-bedroom apartment. At full-time, year-round work, that’s $28.73 per hour.
- This “housing wage” is higher than for any state except Hawaii.
- A household would need 3.5 full-time minimum wage workers to afford the two-bedroom apartment.
- A FMR one-bedroom apartment costs $1,116 per month more than someone who relies solely on SSI (Supplemental Security Income) can afford.
All these figures are higher than those NLIHC reported last year, when the District’s “housing wage” was $24.77 and two states, rather than one, outranked D.C.
This should be a wake-up call, if another were needed, to the DC Council, as it deliberates the proposed no-growth Fiscal Year 2011 affordable housing budget.