The newly released out of reach report shows a critical shortage of affordable housing options in America. The National Low Income Housing Coalition releases the yearly analysis which continue to show a widening gap between rent costs and wage growth. While these trends aren’t new, experts point out they have persisted and intensified.

What is a Housing Wage?

The report introduces the concept of a “housing wage,” which is the hourly rate that a full-time worker needs to earn to afford a rental home at fair market rent without exceeding 30% of their income. For 2023, this housing wage stands at $28.58 for a two-bedroom rental and $23.67 for a one-bedroom. These figures starkly contrast with the federal minimum wage, emphasizing the financial strain on low-income families, seniors, disabled individuals, and low-wage workers across the nation.

Additionally, housing affordability varies significantly across the United States. For example, the housing wage in Arkansas is $16.27, while it soars to $42.25 in California. This discrepancy highlights an economic paradox; states with lower housing costs often have correspondingly lower wages, making it challenging for the lowest earners to secure housing. The NLIHC report also notes in over 92% of U.S. counties, these workers cannot afford a one-bedroom rental on their salary.

The “Out of Reach” report also serves as a critical reminder of the urgent need for solutions to bridge the gap between wages and housing costs, ensuring that all Americans have access to affordable housing.

Navigating America’s Affordable Housing Shortage

Navigate Affordable Housing Partners actively works to address the critical housing shortage. We have a dedicated team that assists with Housing Choice Voucher Management. These vouchers are critical in assisting low-income, elderly, and the disabled to affordable decent, safe, sanitary housing. Click Here to learn more about HUD’s eligibility requirements for this free program or to join a waiting list in your community.

Additionally, Navigate Communities is dedicated to building the future of quality, affordable housing options. Most recently, we partnered to build a neighborhood of high-performance workforce housing units in Birmingham, Alabama. The homes in Goldwire Heights are energy-efficient and designed for long-term affordability. Our goal is to pioneer a new housing era marked by Sustainability, Affordability, and Innovation.