High housing costs in Colorado and across the country have been putting the pinch on renters and prospective home buyers for some time.
Any talk of housing, from government officials to developers to landlords, touches on affordability. A new study released Wednesday by the National Low Income Housing Coalition will only add more urgency to those discussions.
The Washington Post breaks down the report like this: There is nowhere in the country where someone working a full-time, minimum-wage job could afford to rent a modest two-bedroom apartment. And a one-bedroom is available to those low-wage workers in only 22 counties in five states: Colorado, Arizona, California, Oregon and Washington.
The report by the coalition says that in Colorado, a worker needs to earn $23.93 an hour to afford a two-bedroom apartment, while the Fair Market Rent is $1,245 in the state. Fair Market Rent is Housing and Urban Development’s best estimate of what a household seeking a modest rental home in a short amount of time can expect to pay for rent and utilities, according to the report.
To get the $23.93 hourly wage figure, the report factors housing costs as 30 percent of income, thus a household must earn $4,148 monthly or $49,780 annually. To get that annual income based on a 40-hour work week, 52 weeks a year, you need to earn $23.93 an hour. Colorado’s minimum wage is $10.20.
The average wage for renters, who make up 36 percent of the housing market, is $17.59 in Colorado.
Low-income renters at risk of eviction in Denver can now seek legal help from a City Council-backed defense fund
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Source:: The Denver Post – Business