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Rent is out of reach for minimum-wage workers in every state. New study shows how far out of reach

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Wage theft is a huge problem that requires a creative solution, this week  in the war on workers | Today's Workplace

Opponents of raising the minimum wage to $15 like to say that sure, $15 might be a reasonable wage in New York City or Los Angeles, but it’s just too high in the heartland. Guess what, guys? There are more than 3,000 counties in the United States, but only 218 in which a full-time minimum-wage worker can afford a one-bedroom apartment at fair market rent, according to the National Low Income Housing Coalition’s annual Out of Reach report. There is not one city or state in which a full-time minimum wage worker can afford a two-bedroom apartment at fair market rent. And there’s only one state in which full-time work at $15 an hour is currently enough for a two-bedroom market rate rental home. It’s not enough in Alabama or Mississippi, Iowa or Nebraska. It’s for damn sure not Texas or Utah. Congratulations, Sen. Joe Manchin: It’s West Virginia, sliding in 17 cent an hour under $15. But West Virginia’s current minimum wage of $8.75 an hour doesn’t come close.

Nationally, on average, a full-time worker would need to be paid $24.90 an hour to afford a two-bedroom rental without paying more than 30% of their income. By contrast, the average renter in the U.S. earns $18.78 per hour. Nearly 60% of all wage and salary workers earn less than the $24.90 needed to make the average two-bedroom rental affordable.

Today’s minimum wage? Ha. The federal minimum wage is $7.25 an hour. Thirty states, the District of Columbia, and some counties and cities have higher minimum wages, but even so, “the average minimum wage worker must work nearly 97 hours per week (more than 2 full-time jobs) to afford a two bedroom rental home or 79 hours per week (almost 2 full-time jobs) to afford a one bedroom rental home at the fair market rent.”

In five states—Hawai’i, California, Massachusetts, New Jersey, and Maryland—the average renter’s wage falls more than $10 short of the wage needed to afford a two-bedroom rental.

The coronavirus pandemic has brought billions in federal rental assistance, though it’s being paid out too slowly, with the expiration of a federal eviction moratorium looming on July 31. But as the comparison between the cost of modest rental housing and the wages people are actually being paid shows—and as past years of this report show—even before the pandemic, housing was a crisis that demanded policy solutions. The National Low Income Housing Coalition is calling on Congress to expand rental assistance to every eligible household that needs it—current programs fall far short of the need—as well as to invest in affordable housing and bolster public housing. Another key policy would prevent landlords from refusing to rent to people with housing vouchers, since many people with vouchers struggle to find housing they can use the vouchers for.

Republicans will never, ever allow these policies—or a minimum wage increase—to pass if they have the power to block them. Democrats need to find a way to get Sens. Joe Manchin and Kyrsten Sinema on board with doing something, because the situation is dire.

This blog originally appeared at DailyKos on July 19, 2021. Reprinted with permission.

About the author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and a full-time staff since 2011, currently acting as assistant managing editor.


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