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Minimum-wage worker can't afford one-bedroom apartment in all U.S. states: study

Xinhua, June 4, 2015 Adjust font size:

There is not a single state in the United States where a full-time minimum-wage worker can afford a one-bedroom apartment, a new study showed.

According to a new study by the National Low-Income Housing Coalition, the U.S. national average hourly wage for renting a one- bedroom unit in 2015 is 15.50 U.S. dollars and that for renting a two-bedroom unit is 19.35 dollars, while the federal minimum wage has been stagnating at 7.25 dollars per hour since 2009.

"In no state can a minimum wage worker afford a one-bedroom rental unit, working a standard 40-hour work week, without paying more than 30 percent of their income," concluded the report.

Calling the data in the report "sobering", the report said that in communities across the country, working families searching for affordable rental units find little to nothing in their price range.

As a result, about 25 percent households nationwide spend more than half of their income on housing costs.

In order to afford a one-bedroom apartment with the minimum wage, workers in all states have to work more hours than the standard of 40 hours, said the report.

The states where a worker has to work the most hours per week to afford a one-bedroom unit include Hawaii (125 hours), Maryland (101 hours), Washington, D.C. (100 hours), New Jersey (100 hours) and California (92 hours).

Though the minimum wage in some states and counties is higher than the federal minimum wage, the average hourly wage for renting a one-bedroom unit is also higher than the minimum wage, according to the report.

In San Francisco, California, for example, the state and local minimum wages are 9 dollars and 12.25 dollars per hour respectively, 1.75 and 5 dollars higher than the federal minimum wage. However, the hourly wages for renting a one-bedroom and two- bedroom apartment are 31.44 dollars and 39.65 dollars respectively. Endite