How much must Ohioans earn per hour to afford a modest two-bedroom apartment? It might be more than you think.
Full-time workers must earn more than $20 per hour ($20.81) to afford a two-bedroom apartment, according to a new report from the National Low Income Housing Coalition and the Coalition on Homelessness and Housing in Ohio.
That’s more than $40,000 a year. And, there’s a large gap between renters’ income and the cost of rent, according to the report.
In recent years, rent prices have increased rapidly, but income hasn’t kept pace. For instance, the so-called “housing wage” — or the amount workers must earn per hour to afford a two bedroom apartment — has increased 9% since last year.
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“Wages for Ohio’s most common jobs have increased significantly since the pandemic,” Ohio Coalition Executive Director Amy Riegel said in a media release. “Employers are trying to keep pace with inflation, but the skyrocketing cost of rent has effectively erased these wage gains, pushing affordable homes out of reach for a large swath of Ohio’s workforce.”
What jobs pay enough to afford rent in Ohio? Columbus? Cincinnati?
The report, called “Out of Reach Ohio,” shows that only two of the 10 jobs with the most employees in Ohio pay more than $20.81 per hour. Those are general operations managers and registered nurses.
Workers in some areas may have to make even more than $20.81 per hour, as rents are higher than the state’s average in some places.
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In Columbus, those wanting two-bedroom apartments must make $25.04 an hour to afford it. In Cincinnati, they have to make $22.98, and in Cleveland their income must be $21.31 per hour.
As rents rise, people lose their homes
Evictions are at a 20-year high and increasing in Franklin County this year, and Ohio landlords filed nearly 108,000 eviction cases in 2023. That’s more than any year since 2015, according to the report.
Meanwhile, homelessness increased 7% in Ohio from 2022 to 2023.
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“Aging Ohioans and people with disabilities living on a fixed income are especially vulnerable to rent shock,” Riegel said in a release. Meanwhile, Social Security payments have increased only minimally in recent years.
“Ohioans who worked hard for 40 years or more should be enjoying their golden years. Instead, many are rationing medications and wondering how they’re going to feed themselves and pay the rent.”
How does Ohio’s housing wage measure up against other states?
The Out of Reach report also ranks states’ housing wages.
Ohio came in 41st, meaning 40 other states have higher housing wages. Still, Ohioans making minimum wage ($10.45 per hour in the state) would have to work 80 hours per week to afford a two-bedroom apartment.
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West Virginia has the lowest housing wage, with those wanting a two-bedroom apartment needing to make $18.46 per hour. The state’s minimum wage is $8.75, so minimum-wage workers must work 84 hours a week to afford a two-bedroom apartment.
California has the highest housing wage, at $47.38 per hour needed for a two-bedroom apartment. A minimum wage worker in that state earns $16 an hour and would have to work 118 hours per week to afford the same apartment.
What can be done about increasing rent?
Ohio’s budget last year included some early steps to address the state’s affordability crisis, Riegel said. But the state needs to do more, she said.
One of her suggestions? The Ohio Housing Trust Fund, the primary source of state funding for local housing and homelessness programs, should be strengthened.
“This year’s Out of Reach report shows that despite rising wages, cooling inflation, and low unemployment, low-wage workers and other renters continue to struggle with the high cost of rent,” said Diane Yentel, national coalition president and CEO, in a release.
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She urged Congress to tackle the housing affordability crisis, as it impacts the whole country, not just Ohio.
“Addressing the challenge requires long-term federal investments in affordable housing. As evidenced during the COVID-19 pandemic, federal policies and resources play a pivotal role in establishing a robust housing safety net, preventing evictions and homelessness, and mitigating housing instability among renters with the lowest incomes,” Yentel said. “Likewise, federal renter protections are needed to ensure decent, safe, and accessible living conditions for tenants around the country.”
@DanaeKing
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