California’s high cost of housing highlighted in 2006 housing affordability report

Washington, DC – According to a report released today, the Housing Wage for California is $22.86. The Housing Wage is the hourly wage a family must earn – working 40 hours a week, 52 weeks a year – to be able to afford rent and utilities in the private housing market. This represents an increase of 37.4% since 2000.

LOCAL FAMILIES MUST EARN $22.86 AN HOUR TO AFFORD A TWO-BEDROOM APARTMENT

“Every year it is becoming more difficult for low income families to find decent homes they can afford in California,” said Robert Wiener, Executive Director of the California Coalition for Rural Housing. “This report clearly illustrates the pressing need for affordable housing in our communities.”

The report, Out of Reach 2006, was jointly released by the National Low Income Housing Coalition (NLIHC), a Washington, DC-based housing advocacy group. The report provides the Housing Wage and other data for every state, metropolitan area and county in the country. The study calculates the hourly wage a family must earn- working 40 hours a week, 52 weeks a year- to be able to afford rent and utilities in the private housing market in every state, metropolitan area and county in the country.

The typical renter in California earns an estimated $15.14 per hour, which is $7.72 less than the hourly wage needed to afford a modest unit.

Working at the minimum wage, a family must have 3.4 wage earners working full-time – or one full-time earner working 135 hours a week – to afford a modest two-bedroom apartment.

An estimated 57% of renters in California do not earn enough income to afford a two-bedroom unit at the Fair Market Rent.

This year, California is the fiftieth most expensive state in the nation for renters. The National Housing Wage is $16.31.

Additional facts and findings from Out of Reach 2005:

• Of the 10 least affordable counties in the nation, 6 are in California: Marin County, San Francisco County, San Mateo County, Ventura County, Orange County, and Santa Cruz County.
• The vast majority of American renter families (88%) live in cities where a two-bedroom apartment at the Fair Market Rent is unaffordable to a family with two full-time minimum wage earners. Additionally, there is no county in the entire country where a full-time worker earning minimum wage can afford to rent even a one-bedroom apartment.
• The ten most expensive states for renters (with their Housing Wages) are:
  

  Hawaii	$23.53
  California	$22.86
  Massachusetts	$22.65
  New Jersey	$21.20
  New York	$20.70
  Connecticut	$20.42
  Maryland	$20.07
  Rhode Island	$19.36
  New Hampshire	$18.10
  Alaska	$17.90

Background

The Housing Wage is based on the Fair Market Rent, the Department of Housing and Urban Development’s best estimate of what a household seeking a modest rental unit can expect to pay in the local private market for rent and utilities. The report uses the federal affordability standard of spending no more than 30% of income on housing costs.

The California Coalition for Rural Housing is a statewide network committed to the production and preservation of decent, safe, and low-cost housing for rural and low income Californians. CCRH advocates at all levels of government and provides technical assistance to community groups and nonprofits on housing issues.

For additional information, visit http://www.nlihc.org/oor/oor2006/

###

FOR IMMEDIATE RELEASE: December 12, 2006

For more information contact:
California Coalition for Rural Housing
Rob Wiener or Darryl Rutherford (916) 443-4448
rob@calruralhousing.org or darryl@calruralhousing.org