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Minimum wage increases passed by cities and states around the country are great news for low-wage workers—but the news isn't good enough. As a
new report (PDF) from the National Low Income Housing Coalition shows, even those higher minimum wages are mostly not high enough for a worker to afford an average two-bedroom apartment on 40 hours a week of work without spending more than 30 percent of their income on housing costs. Nationally:
The 2015 Housing Wage is $19.35 for a two-bedroom unit, and $15.50 for a one-bedroom unit. The Housing Wage for a two-bedroom unit is more than 2.5 times the federal minimum wage, and $4 more than the estimated average wage of $15.16 earned by renters nationwide.
While housing costs and the minimum wage both vary by state, the news doesn't get much better if you drill down:
In no state can an individual working a typical 40-hour workweek at the federal minimum wage afford a one- or two-bedroom apartment for his or her family. In fact, with the exception of a handful of counties in Washington and Oregon (where the state minimum wage is $9.47 and $9.25, respectively), there is no county in the U.S. where even a one-bedroom unit at the FMR is affordable to someone working fulltime at the minimum wage.
Rents, unlike the minimum wage, "have risen nationally for 23 straight quarters. As of the third quarter of 2014, rents were 15.2% higher than at the tail end of the Recession in 2009." While high rents are a problem most visible in urban areas like New York and San Francisco, rural renters face challenges, too.