Apartment prices up...

[Future Shock]

So our economic recovery looks like this :

WASHINGTON (AP) -- The cost of rental housing has increased faster than wages, making it increasingly difficult for low-income families to afford even modest apartments, an advocacy group said Tuesday.

"The picture is similar to past years, but it's getting worse," said Danilo Pelletiere, research director of the National Low Income Housing Coalition.

The coalition, which advocates for more affordable housing, issues a report each year tracking rental costs in every state, county and metropolitan area in the country.

It says families should spend no more than 30 percent of their incomes on housing and utilities, a standard recognized by many housing experts. Under that standard, the coalition said it could not find a single county in the United States where a full-time worker making minimum wage could afford a one-bedroom apartment.

In reality, the report found, many low-income families spend a far larger share of their incomes on housing.

Full article HERE

You would expect that SOMEWHERE in the US there has to be a place that you could find a one bedroom apartment for minimum wage...wouldn't you? They must be dealing with county-wide rental price averages or something, so I'm not sure how much I trust these numbers...however, the bulk of the population BUYS average price (thats why it's the average), so en masse the score looks pretty bad.

The article goes on to lay most of the blame for this on rising fuel prices...and talks about how bad it must be for Katrina victims who can't afford to live.

Future Shock

 

[EatSpam]

"You work three jobs? ? Uniquely American, isn't it?" -- George W. Bush

Maybe that's these peoples' problem. They don't work long enough. What is this France? Why should 40 hours of work guarantee you anything?

Oops, sorry. Must have been channelling Zendari.

 

[misle]

Well, as a college student, this is the reason people have roommates. Also, I don't know anyone over 17 making minimum wage. Most places around here hiring unskilled labor pay $9-12 starting (for example: Shelter Insurance, 3M, SquareD, Quaker, etc.)

 

[Future Shock]

Originally posted by: misle
Well, as a college student, this is the reason people have roommates. Also, I don't know anyone over 17 making minimum wage. Most places around here hiring unskilled labor pay $9-12 starting (for example: Shelter Insurance, 3M, SquareD, Quaker, etc.)

The article states you would need to make at least $15.25 per hour to pay 30% of your income for rent for a 1BR...so even people over minimum aren't making it.

FS

 

[Helenihi]

What is this rule that only 30% of your income should go to housing? That's retarded.

 

[dahunan]

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

How much should it be?

 

[Helenihi]

Originally posted by: dahunan

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

How much should it be?

Why should there be any percentage? Its an idiotic random standard.

Maybe when trying to figure out how affordable housing, we just see if people can afford housing, regardless of what combination of their income they spend on their various bills?

Why 30? Why not 15? Why not 10?

 

[dahunan]

Originally posted by: Helenihi

Originally posted by: dahunan

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

How much should it be?

Why should there be any percentage? Its an idiotic random standard.

Maybe when trying to figure out how affordable housing, we just see if people can afford housing, regardless of what combination of their income they spend on their various bills?

Why 30? Why not 15? Why not 10?

I thought you were going to say that it could be higher

Truth is it can be higher than 30% for many people..

 

[tec699]

so sad.



Well at least I have my uncle.

 

[charrison]

Originally posted by: Future Shock
So our economic recovery looks like this :

WASHINGTON (AP) -- The cost of rental housing has increased faster than wages, making it increasingly difficult for low-income families to afford even modest apartments, an advocacy group said Tuesday.

"The picture is similar to past years, but it's getting worse," said Danilo Pelletiere, research director of the National Low Income Housing Coalition.

The coalition, which advocates for more affordable housing, issues a report each year tracking rental costs in every state, county and metropolitan area in the country.

It says families should spend no more than 30 percent of their incomes on housing and utilities, a standard recognized by many housing experts. Under that standard, the coalition said it could not find a single county in the United States where a full-time worker making minimum wage could afford a one-bedroom apartment.

In reality, the report found, many low-income families spend a far larger share of their incomes on housing.

Full article HERE

You would expect that SOMEWHERE in the US there has to be a place that you could find a one bedroom apartment for minimum wage...wouldn't you? They must be dealing with county-wide rental price averages or something, so I'm not sure how much I trust these numbers...however, the bulk of the population BUYS average price (thats why it's the average), so en masse the score looks pretty bad.

The article goes on to lay most of the blame for this on rising fuel prices...and talks about how bad it must be for Katrina victims who can't afford to live.

Future Shock

Fortunatly the vast majority of folks making minimum wage are kids that are still living at home with their parents and have little need to pay rent.

 

[morrisbj]

I'm not sure that anywhere really exists except for subsidised housing that a person could afford 1BR at minimum wage. If it was the only expense that person had, they could get a livable 1BR. Cheap around here on a 1BR is $500, and that is REALLY cheap. Full time at minimum wage gets you $10753.20 a year. That isn't much.

 

[morrisbj]

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

30-40% is widely accepted at the highest percentage of your income you can dedicate to your housing without having to cut corners somewhere else. If you consider all the other expenses that a person has, and allow for saving up to 10% for an emergency, more than 30% is too much.

That isn't to say it can't be done. The last time I was out on my own I was bringing in $24000/yr and paying $875/month for an apartment. I made it, but it wasn't fun or easy.

 

[Vic]

With the housing boom, rents have been very stable for several years. Regardless of whether the boom continues or the bubble bursts, I expect that trend to continue, as the hardest hit in a bubble will be investment property owners desperate for cashflow (in the absence of value appreciation). In fact, a bubble might put a good deal of rental housing back on the market, as a lot of "flippers" and "churners" have been holding properties vacant while making all their money off appreciation.

But seriously, if you're going to complain about housing prices, you might want to look at the laws in your area that limit housing development. Supply and demand is crucial to rents.

 

[Genx87]

That is a cute, how many people do you know are making minimum wage?
Even when i was in highschool McDonals was paying 8-9 bucks an hour to be a cashier and this is when the min was 4.75.

 

[imported_tss4]

Originally posted by: Genx87
That is a cute, how many people do you know are making minimum wage?
Even when i was in highschool McDonals was paying 8-9 bucks an hour to be a cashier and this is when the min was 4.75.

$8-9? That's pretty good. It was more like $6-$7 when I was in high school (96-00). You know a lot of people defend such a low minimum wage by saying that the vast majority of people that make min wage are teenagers. (My personal experience backs that up but I don't live in a poor area either). Does anyone have any facts or studies to back that up?

 

[dmcowen674]

Originally posted by: Future Shock
Topic Title: Apartment prices up...
Topic Summary: Increasing number of poor cannot afford even a 1BR..

So our economic recovery looks like this :

WASHINGTON (AP) -- The cost of rental housing has increased faster than wages, making it increasingly difficult for low-income families to afford even modest apartments, an advocacy group said Tuesday.

"The picture is similar to past years, but it's getting worse," said Danilo Pelletiere, research director of the National Low Income Housing Coalition.

The coalition, which advocates for more affordable housing, issues a report each year tracking rental costs in every state, county and metropolitan area in the country.

It says families should spend no more than 30 percent of their incomes on housing and utilities, a standard recognized by many housing experts. Under that standard, the coalition said it could not find a single county in the United States where a full-time worker making minimum wage could afford a one-bedroom apartment.

In reality, the report found, many low-income families spend a far larger share of their incomes on housing.

Full article HERE

You would expect that SOMEWHERE in the US there has to be a place that you could find a one bedroom apartment for minimum wage...wouldn't you? They must be dealing with county-wide rental price averages or something, so I'm not sure how much I trust these numbers...however, the bulk of the population BUYS average price (thats why it's the average), so en masse the score looks pretty bad.

The article goes on to lay most of the blame for this on rising fuel prices...and talks about how bad it must be for Katrina victims who can't afford to live.

This is the new Republican America.

According to them we don't need:

Manufacturing
Housing
Health Care
...

 

[Legend]

Depends on the part of the nation.

Near Huntsville, AL, a 500 sqft efficiency goes for about $400/month, which is $4800/year. This includes expanded basic cable TV, a fridge, dishwasher, a stove/oven and a bed. After untilities, (cable is included), broadband internet, gas, and food from Walmart, it's about $850/month, or about $10,000 year.

I figured this out because I wanted to know how much I could invest per year if I started in one of these after graduation before I moved into a house...which you can get for dirt cheap here as well. I'm a co-op engineer now, and I'm living in one of these apartments.

While that would suck at minimum wage, it's doable. But really, why would you start a job at minimum wage. Pratically anyone can do better than bagging groceries at Kroger.

 

[dullard]

I live in the midwest (Lincoln, Nebraska). I just searched the classified and there are a dozen or so current listings of $285/mo or less. The ones that are $265/mo or less will meet that 30% criterion. Are they great places to live? No. But they exist.

In the midwest, there are plenty of minimum wage jobs. The town that I grew up in (Columbus, NE) was very difficult to find a job that paid higher if you didn't have a college education. When I last checked a couple years ago, Wal-Mart in Columbus paid $0.50 over the minimum wage for their cashiers (minimum wage for stockers and the rest). So that is an option I guess. The only other option was to work in the slaughter house, it paid ~$8/hour. I knew many adults there supporting their family on multiple minimum wage jobs.

 

[Strk]

Originally posted by: dullard
I live in the midwest (Lincoln, Nebraska). I just searched the classified and there are a dozen or so current listings of $285/mo or less. The ones that are $265/mo or less will meet that 30% criterion. Are they great places to live? No. But they exist.

In the midwest, there are plenty of minimum wage jobs. The town that I grew up in (Columbus, NE) was very difficult to find a job that paid higher if you didn't have a college education. When I last checked a couple years ago, Wal-Mart in Columbus paid $0.50 over the minimum wage for their cashiers (minimum wage for stockers and the rest). So that is an option I guess. The only other option was to work in the slaughter house, it paid ~$8/hour. I knew many adults there supporting their family on multiple minimum wage jobs.

Come to MA where $285 will get you nothing, unless you're coming with two room mates willing to spend $285 each as well.

 

[homercles337]

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

I was taught 25% in my personal finance course in college. This number is not random, its actually rather well estabilished.

 

[Tab]

That seems kind of odd, but anyway when I was working part time at North American Steak Buffet for $5.50 I am pretty damn sure I could afford a single efficency. Of course I'd be spending 75% of my income on rent ;P

 

[Tab]

Originally posted by: homercles337

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

I was taught 25% in my personal finance course in college. This number is not random, its actually rather well estabilished.

How is that number established?

 

[Purgatory-Z]

Originally posted by: Tab

Originally posted by: homercles337

Originally posted by: Helenihi
What is this rule that only 30% of your income should go to housing? That's retarded.

I was taught 25% in my personal finance course in college. This number is not random, its actually rather well estabilished.

How is that number established?

Is that 25% to rent? I spend a great deal more to own my place, in the area of 50-60%. Any links on this?

 

[TheSlamma]

Is the 30% before or after taxes

 

[TheSlamma]

LMFAO with gas prices these days in order to keep your utilities under 30% you better keep your house set to 42 degrees.