HOUSING AFFORDABILITY GAP CONTINUES TO WIDEN

According to a report released by the Coalition on Homelessness and Housing in Ohio (COHHIO), in conjunction with the National Low Income Housing Coalition, low-income workers in the greater Columbus area must earn more than twice the federal minimum wage or $12.31 per hour, if they are to afford rent for the average two-bedroom apartment. The report, entitled Out of Reach 2003: America’s Housing Wage Climbs, takes a detailed and much needed look at the ever-growing disparity between rental housing costs and the minimum wage.

“Out of Reach shows all too well, that the affordable housing crisis in this state continues to worsen,” said Bill Faith, Executive Director of the Coalition on Homelessness and Housing in Ohio. “As the economy tries to rebound from a slump not seen since the early 1990’s, the gap between what people can afford to pay and the real costs of housing continues to widen at an unprecedented pace. Since 1997, the housing wage (the amount one must earn per hour for a 40 hour work week if they are to afford the average rent for a two-bedroom apartment) for the State of Ohio has jumped by more than 25 percentage points. To put this into context, the housing wage is nearly two-and-a-half times the minimum wage.”

Faith continued, “The housing situation for people with incomes at the lower end of the spectrum in Ohio is even worse than it was last year. The bottom line is that people just don’t earn enough to be able to afford even modest rental housing,” said Faith. “It is unconscionable that people in this state who work full time still cannot afford a decent place to live. It is time to make the affordable housing crisis a priority in the State of Ohio and solve this problem once and for all. The state took a significant step in the right direction earlier this year, when it secured permanent and dedicated funding for the Ohio Housing Trust Fund, but more could be done to narrow the housing affordability gap. Ensuring that all the money generated by an increase in the county recordation fee goes to affordable housing efforts is one concrete step the state could take to narrow this gap,” said Faith.

According to the report:

The housing wage (the amount one must earn) for a one-bedroom apartment in the Columbus area is $9.60 per hour (or 186% of the minimum wage), the housing wage for a two-bedroom apartment is $12.31 per hour (or 239% of the minimum wage), and the housing wage for a three-bedroom apartment is $15.63 per hour (or 304% of the minimum wage).

· Minimum wage workers in the Columbus area must work at least 75 hours per week to afford rent for a one-bedroom apartment, 96 hours per week to afford rent for a two-bedroom apartment, and 121 hours per week to afford rent for a three-bedroom apartment.

Things are getting worse. Across the board within the state’s 88 counties, the amount one must earn to afford an apartment increased from 2002. Since 2000, the housing wage for the state has increased by more than 15 percentage points, while the inflation rate for the past three years has remained around two percent.

“Out of Reach backs with concrete data what the daily experience of low-income people tells us is true: We have a very serious housing affordability problem here in Columbus,” said Barbara Poppe, Executive Director of the Community Shelter Board. “Without assistance, the gap between what people in low-wage jobs earn and what rental housing costs here is simply unbridgeable.”

More data for all of Ohio’s counties and Metropolitan Statistical Areas (MSA’s) are available at the National Low Income Housing Coalition (NLIHC) website: http://www.nlihc.org/. Click on Out of Reach 2003.

The Community Shelter Board, established in 1986, is a non-profit intermediary organization that coordinates community based efforts, fosters collaboration, and funds services to assist families and individuals in Central Ohio to resolve their housing crisis. The Community Shelter Board allocates $7.5 million annually to support programs at 17 agencies. Last year, these programs served more than 11,000 individuals. The Community Shelter Board is funded by the City of Columbus, the Franklin County Board of Commissioners, the United Way of Central Ohio, the U.S. Department of Housing and Urban Development, the State of Ohio, and other public and private donors.

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