Rising rents, stagnant wages leave many struggling to get by
A new report released Tuesday by the National Low Income Housing Coalition (NLIHC) shows a mismatch between the cost of rental housing and the wages people earn day-to-day.
Out of Reach 2012 finds in North Carolina the Fair Market Rent (FMR) for a decent, two-bedroom apartment is $709 a month. A person working the standard 40-hour work week would need to earn roughly an hourly wage of $13.63 to cover their rent and basic utilities.
Now if you make minimum wage ($7.25), you would need to have two full-time jobs or work roughly 75 hours each and every week to be able to afford that same modest apartment in the Tar Heel state.
Across the country, with more families opting to rent over home ownership, vacancy rates are down and rents are trending higher. NLIHC notes that is placing an even greater burden on extremely low-income households, including seniors and those on a fixed-income. And the problem has only gotten worse in recent years:
Despite the immense need, the supply of low-cost rental units is actually shrinking, as more units are converted to serve higher income tenants or fall into disrepair. According to recent ACS [Census] data, the number of units renting for $500 or less fell by one million from 2007 to 2010, and during that same time period, the number of units renting at $1,250 or more grew by two million units.
To read the full report, which includes a look at rental housing in all of NC’s 100 counties, click here.