Staff Reports
Fewer available rental units, rising demand among renters
and higher rents are putting greater stress on low-income renters.
That’s according to the annual housing affordability report
by the National Low Income Housing Coalition. In “Out of Reach 2013” the NLIHC
illustrates how large numbers of low-income renters can’t afford the cost of
living in their areas.
Rental unit vacancy rates fell from 8 percent in 2008 to 4.5
percent in late 2012, and two-thirds of large metropolitan areas are seeing
tighter rental markets. In the Portland metro area, the rental unit vacancy
rate is even lower, around 2 percent.
The NLIHC’s housing wage — the full-time hourly wage needed
to afford an apartment at the federally accepted Fair Market Rent, while
spending no more than 30 percent of income on housing — is estimated to be
$18.79 an hour. The average renter earns $14.32 an hour. Oregon’s minimum wage
is currently $8.95 an hour.
State and national findings:
- Fair Market Rent for a two-bedroom unit in
Oregon is $832
- Oregon’s housing wage for a two-bedroom unit is
$16.00 an hour, which ranks 25th most expensive out of all states and
territories.
- In the Portland area, the housing wage is $17.54
an hour, based on HUD’s Fair Market Rent percentage of 30 percent of income.
- In Oregon, a renter would need to work 72 hours
a week at minimum wage to afford a two-bedroom unit under HUD’s formula
- Nationally, 29 percent of renters live below
poverty, and 25 percent have extremely low income, but most new rental units
are targeted for high-income households.
- For supply to meet demand, an additional 4.5
million units of affordable housing would be needed.
- One in four renters have extremely low income,
totaling 10.1 million households nationally. Of those, 7.7 million spend more
than 50 percent of their income on housing. Extremely low income households
earn no more than $19,810 in 2013 — $400 less than in 2012 — and can afford to
spend $495 a month on rent. Meanwhile, the fair market rent rose to $977 a month
for a two-bedroom unit and $783 for one bedroom.
- The median wait-time for federal and local
assistance is two years; 40 percent of those waiting end up living “doubled up”
with friends or family and 23 percent becoming homeless.
- Based on purchasing power, today’s minimum wage
($7.25) is worth about 30 percent less than it was in 1968.
The National Housing Trust Fund was established in 2008
to address the need for affordable housing to serve extremely low-income
households.
