Rental Housing Costs Increased 28% Since 2000

A person must earn at least $28,475 a year to afford the fair market rent on a one-bedroom apartment in the U.S. in 2006.

"The cost of affordable rental housing has risen 28 percent in the past seven years, far outpacing the wages of those who need it most, according to a new report released Tuesday.

'Out of Reach,' the annual report of the National Low Income Housing Coalition (NLIHC), found that housing affordability is most difficult for minimum-wage earners but is also tough for those who earned the median hourly wage ($14.57) last year.

In 2006, what the NLIHC calls the 'national housing wage' rose to $16.31 for a two-bedroom rental, from $15.78 last year. That is the hourly wage required to afford the rent and utilities of a modest market-rate rental home without having to spend more than 30 percent of one's gross income, a commonly accepted measure of housing affordability."

Thanks to Danilo Pelletiere

Full Story: http://money.cnn.com/2006/12/12/news/economy/rental_costs/index.htm?section=money_latest

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