Working Doesn't Always Pay for a Home
The following data on housing costs in the Twin Cities is brought to you courtesy of the Family Housing Fund.
The Twin Cities area enjoys a strong economy and an enviably low unemployment rate. Unfortunately, with housing costs rising faster than wages, even working full-time does not guarantee access to affordable housing. The Twin Cities metropolitan area faces a severe shortage of decent, safe housing at prices that working families can afford.
A typical two-bedroom apartment in the metro area rents for $916 per month, and a modest three-bedroom house sells for an average of $148,000. A home is usually considered to be affordable if a family pays no more than 30 percent of its income in housing costs. Any more than this, and families often must cut back on other necessities such as food and clothing. By the 30 percent measure, a family would have to earn $36,640 per year ($17.60 per hour) to afford to rent a two-bedroom apartment or $50,000 per year ($24 per hour) to afford to buy a three-bedroom house. Many jobs pay far lower salaries.
Households with only one full-time wage earner, such as single-parent families or families in which one parent doesn’t work outside the home, face particular difficulty finding an affordable home. Even with two family members working full-time in jobs that pay close to minimum wage ($8.50/hour or $17,680/year), however, a family cannot afford the typical two-bedroom apartment or three-bedroom house.
The need for affordable housing for working families is especially acute in communities with high levels of employment growth but few lower-priced apartments and houses. Many developing suburbs are experiencing significant job growth, but most affordable housing is concentrated in the center cities and first-ring suburbs. As a result, while many workers earning low wages are providing essential services for residents of local communities—child care, food service, or health care, for example—they often are priced out of housing in the communities in which they work.
The following graphs and table show what people in different professions can afford to pay for housing and what homes for families actually cost.
Housing costs for families at income of $20,000 per year or less Housing costs for families at income of $20,000 -- $25,000 per year Housing costs for families at income of $25,000 -- $30,000 per year
Housing costs for families at income of $20,000 per year or less
Housing costs for families at income of $20,000 -- $25,000 per year
Housing costs for families at income of $25,000 -- $30,000 per year
Table on income needed for housing in Twin Cities
The above information and the accompanying charts are used with permission from: Family Housing Fund801 Nicollet Mall Suite 1840Minneapolis, MN 55402(612) 375-9648
The above information and the accompanying charts are used with permission from:
Family Housing Fund801 Nicollet Mall Suite 1840Minneapolis, MN 55402(612) 375-9648
