Most people who rent do so either for convenience or because they do not have the capital to invest in their own personal property to live in. Real estate prices in certain parts of the country have forced many who live and work there to rent apartments and lease homes. It is no surprise that those states with high real estate prices are also expensive states for renters.
The National Low Income Housing Coalition releases a report called Out of Reach anually, where it compares housing costs vs. wage levels in communities across the entire United States. The number the report uses, Housing Wage represents the hourly wage that a household must earn (working 40 hours a week, 52 weeks a year) in order to afford the Fair Market Rent for a two-bedroom unit at 30% of income.
Hawaii is most expensive state in the nation for renters, according to the recent 2006 report at a Housing Wage of $23.53. The next 3 most expensive states for renters were: California $22.86, Massachusetts $22.65 and New Jersey $21.21. Outranking even Hawaii was the District of Columbia at a Housing Wage of $24.73, but obviously DC it is not a state.
From the Press Release:
The cost of affordable rental housing climbed again in 2006, out pacing the wages of those who need it most. The national two-bedroom Housing Wage climbed to $16.31 for 2006, up from $15.78 last year. This is the hourly wage a full time worker must earn in order to afford a two-bedroom home at his or her community’s Fair Market Rent (FMR).
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Minimum wage earners are unable to afford even a one-bedroom home anywhere in the country, and 88% of renters in cities live in areas where the FMR for a two-bedroom rental is not affordable even with two minimum wage jobs.
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I want to Buy the most expensive House ever sold.
You and me both, sugar