Have you taken a look at the just released 2023 Out of Reach report?
This report highlights the lack of affordable housing across the country and here in Michigan. It cites the difficulty for minimum wage workers to afford housing without working two jobs, which is such a difficult task. There is nowhere in Michigan that a person working 40 hours at minimum wage can afford a two bedroom unit. It also points out the stark fact that far too many households are rent burdened, which means they are paying more than 30% of their income toward housing.
In Michigan, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,126. To afford this level of rent and utilities — without paying more than 30% of income on housing — a household must earn $3,752 monthly or $45,025 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into an hourly Housing Wage of $21.65.
A minimum wage worker in Michigan must work 86 hours a week to afford a 2 bedroom rental unit at Fair Market Rent. To afford a 1 bedroom unit, a minimum wage worker in Michigan must work 68 hours a week.
“Housing is a human right,” said NLIHC President and CEO Diane Yentel. “Stable, affordable homes are a prerequisite for basic well-being, and no person should face the danger of losing their home. But, as
the Out of Reach report shows, too many low-income renters now face worsening housing instability, as wages stagnate, housing costs rise, and pandemic-era safety net programs close down. Addressing the
country’s long-term housing affordability crisis requires bridging the gap between rents and incomes through comprehensive federal legislation and adequate funding by Congress for our country’s vital
affordable housing and homelessness programs.”
For additional information, and to download the report, visit: http://www.nlihc.org/oor