California’s high cost of housing highlighted in 2007-2008 housing affordability report
Washington, DC – According to a report released yesterday, the Housing Wage for California is $24.01. 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 44.3% since 2000.
“Every year it is becoming more difficult for low income families to find decent homes they can afford in California”, said Robert Wiener, California Coalition for Rural Housing. “This report clearly illustrates the pressing need for affordable housing in our communities.”
The report, Out of Reach 2007-2008, was jointly released by the National Low Income Housing Coalition (NLIHC), a Washington, DC-based housing advocacy group, and the California Coalition for Rural Housing (CCRH). The report provides the Housing Wage and related data for every state, metropolitan area and county in the country.
The typical renter in California earns an estimated $16.67 an hour, which is $7.34 less than the hourly wage needed to afford a modest unit.
In California, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,249. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $4,162 monthly or $49,940 annually. In order to afford the FMR for a two-bedroom apartment at this wage, a renter must work 58 hours per week, 52 weeks per year. Or, working 40 hours per week year-round, a household must include 1.4 worker(s) earning the mean renter wage in order to make the two-bedroom FMR affordable.
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, as in years past, California is the fiftieth most expensive state in the nation for renters. The National Housing Wage is $17.32 in 2008.
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/oor2008/
