Ever try renting a decent home on minimum wage? Study shows it’s nearly impossible
Even with recent increases in the federal minimum wage in some states, it’s still virtually impossible for people in the U.S. to comfortably afford a two-bedroom home on minimum wage, according to a study from the National Low Income Housing Association.
And one-bedroom houses are affordable in only 12 counties in the United States, according to the study. The U.S. Department of Housing and Urban Development defines a comfortable living situation as residents only having to spend 30 percent of household income on rent and utilities. Roughly 12 million renters and homeowners spend more than 50 percent of their annual incomes on housing.
Under the federal minimum wage of $7.25 per hour, renting a two-bedroom home would take 117 hours of work per week, according to the National Low Income Housing Association study. A one-bedroom home would require 94.5 hours per week. It would take a wage of at least $21.21 an hour to comfortably afford a two-bedroom home.
A mother of two, Alicia Hamiel, told The Guardian it’s difficult to afford her one-room Philadelphia apartment on $7.75 an hour at McDonalds, working 26-36 hours per week. She spends $400 a month on their home.
“I feel like I’m failing as a mom,” Hamiel told The Guardian. “If I can’t make sure they have a roof over their heads, what am I doing? I feel like I’m doing the best that I can.”
A number of states have attempted to ease the burden on people like Hamiel by raising the mandatory minimum wage, including some of the more costly states.
In fact, 29 other states have raised their minimum wages above the federal requirement, according to the National Conference of State Legislatures.
California approved a measure to hike its minimum wage to $15 per hour by 2022. New York also plans to raise its minimum wage to $15 per hour by 2019, as will Washington, D.C., by 2020.
However, 24 states have passed laws aimed at preventing minimum wage hikes, according to the National Employment Law Project. Opponents of minimum wage increases argue that raising the minimum wage wouldn’t decrease poverty and could cause job loss because businesses couldn’t afford to employ so many people.
This story was originally published June 9, 2017 at 3:30 PM with the headline "Ever try renting a decent home on minimum wage? Study shows it’s nearly impossible."