- The average minimum wage worker in the US would need to work at least two jobs in order to afford rent in any US state, according to the annual "Out of Reach" report by the National Low Income Housing Coalition (NLIHC).
- The minimum wage to afford a two-bedroom rental in 2020 is $23.96 per hour and $19.56 for a one-bedroom rental, according to the report.
- The report was published amid an unprecedented health crisis, the economic impact of which has left millions of Americans without a job.
- The researchers behind the report called on the federal government to take more action to "secure affordable homes" by funding federal rental housing programs, especially amid the coronavirus pandemic.
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Full-time minimum wage workers can't afford to rent a two-bedroom rental in any state in the US, according to the annual "Out of Reach" report by the National Low Income Housing Coalition (NLIHC).
The coalition also found 95% of minimum wage workers cannot afford a one-bedroom rental.
The minimum wage to afford a two-bedroom rental in 2020 is $23.96 per hour and $19.56 for a one-bedroom rental, according to the report. However, the hourly wage of the average renter is $18.22, which is still $5.74 less than what is needed to afford a two-bedroom rental and $1.34 less to afford a one-bedroom.
The average full-time minimum worker needs to work at least 97 hours to afford a two-bedroom rental or 79 hours per week to afford a one-bedroom rental, according to the report.
"People who work 97 hours per week and need 8 hours per day of sleep have fewer than 2.5 hours per day left over for everything else — commuting, cooking, cleaning, selfcare, caring for children and family, and serving their community," the analysts behind the report wrote.
As the national housing wage becomes increasingly unattainable for minimum wage workers, the economic impact of the coronavirus pandemic has left millions without a job.
"The economic downturn spurred by the virus further increases the risk of housing instability for millions of low-wage renters at a time when stable housing is vital," they wrote. "Millions of renters were one financial shock away from housing instability, and for many the pandemic and economic fallout is that shock."
The researchers behind the report called on the federal government to take more action to "secure affordable homes" by funding federal rental housing programs, especially amid the unprecedented health crisis.
"Housing is a basic necessity – an essential ingredient of individual and public health, stability, and dignity," the analysts wrote. "The COVID-19 crisis has demonstrated the recklessness of letting people's access to basic necessities like housing depend on the contingencies of the economy."
Congress has attempted to pad the financial ramifications of the pandemic by passing the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, a $2 trillion economic stimulus bill.
In May, the House of Representatives passed a $3 trillion coronavirus relief bill in May dubbed the HEROES Act, which stands for the Health and Economic Recovery Omnibus Emergency Solutions Act. The bill, however, is not expected to pass in the GOP-controlled Senate. Senate Majority Leader Mitch McConnell called the bill a "big laundry list of pet priorities" that has "no chance of becoming law."
Last month, the House passed another relief bill specifically geared towards housing affordability, known as the Emergency Housing Protections and Relief Act of 2020.
"The bill allocates $100 billion towards emergency rental assistance, establishes a $75 billion fund for homeowners, and extends an eviction and foreclosure moratorium," Business Insider's Rosie Perper reported.
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