Study: Asheville renters need to earn $14.94/hour to afford "basic apartment" (Henderson: low income, 2013)
Western North CarolinaThe Mountain Region including Asheville
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For those working renters thinking of moving here, this might be good to know...
"Renters in Asheville need to earn $14.94 per hour in order to afford a basic apartment here, according to a report released today that compares the cost of rental housing with what renters can really afford.
The report, Out of Reach 2013, was jointly released by the National Low Income Housing Coalition, a Washington, D.C.-based research and advocacy organization, and the North Carolina Housing Coalition. The report provides the Housing Wage and other housing affordability data for every state, metropolitan area, combined non metropolitan area, and county in the country. The Housing Wage is the hourly wage a family must earn, working 40 hours a week, 52 weeks a year, to be able to afford the rent and utilities for a safe and modest home in the private housing market.
“More people in Asheville are renting now because they see it as a less expensive option than owning a home,” said Satana Deberry, Executive Director of the North Carolina Housing Coalition “But that means the low-wage workers who have always relied on rental housing are getting squeezed out of the hot rental market.”
Working at the minimum wage in Asheville, a family must have 2 wage earners working full-time, or one full-time earner working 82 hours per, to afford a modest two-bedroom apartment.
The typical renter in Asheville earns $11.21 per hour, which is $3.73 less than the hourly wage needed to afford a modest unit.
The National Housing Wage is $18.79 in 2013.
Sheila Crowley, President and CEO of the National Low Income Housing Coalition, says that there is a role the federal government can play in easing the financial strain faced by low income renters. “The federal government has used the tax code to make homeownership easier. In reality, the benefits are largely going to higher income people with million-dollar homes. It’s time to make housing policy work better for middle and lower income people by reforming mortgage interest tax breaks and directing the savings to the National Housing Trust Fund to build and preserve rental homes affordable to the lowest income Americans.”
For over 25 years, the award-wining North Carolina Housing Trust Fund has financed nearly 25,000 safe, quality, affordable homes and apartments, mostly for very low income families. It has created thousands of much-needed construction jobs and generated millions in local and state tax revenue. As the state readies itself for another contentious legislative session, housing advocates are urging lawmakers to strengthen the NC Housing Trust Fund, a program with historic bi-partisan support that can help preserve and develop new affordable rental housing and strengthen communities across the state.
An estimated 57% of renters in Asheville do not earn enough to afford a two-bedroom unit at the Fair Market Rent.
Additional Facts about the Asheville area:
• 34% of all households in Buncombe County are renters.
• The Housing Wage in Haywood County is $13.87.
• The Housing Wage in Henderson County is $14.94.
• The Housing Wage in Madison County is $14.94
Additional Facts about North Carolina:
• The typical renter in North Carolina earns $12.55 per hour, which is $1.62 less than the hourly wage needed to afford a modest unit."
The Housing Wage is the hourly wage a family must earn, working 40 hours a week, 52 weeks a year, to be able to afford the rent and utilities for a safe and modest home in the private housing market.
And this is exactly why so many working Americans have second jobs, second incomes, or simply work more than 40 hours at their primary employer.
I am surprised the surrounding counties show pretty much the same numbers.
some places (e.g. chocolate lounge) post signs, that their workers are getting payed a living wage Living wage - Wikipedia, the free encyclopedia .... but that's kind of rare, I guess.
The living wage in WNC for 2013 is $11.85/hr. without benefits, $10.35/hr with employer provided health insurance, and can be found here.
The problem is if the living wage rises more toward the study MovingOver found, rents (and prices) will rise, too. It winds up being a cycle of one chasing the other and creates a localized inflation. In other words, it is a no win situation to try and eke out a living.
There are some time-tested and simple formulas to determine a rule of thumb about how much income it takes to support a given rent or house payment, and vice versa. Anyone thinking about "throwing it all away" and voluntarily getting in a situation that low-balls those numbers does so at their own risk.
For those stuck in the situation, they know the problem. Most are working two (or more) jobs now.
And the livable wage Mule posted above is what good, decent companies pledge to pay workers so they can survive & not be serfs...and its still $3.09/hr less than what's needed to get a basic apartment....and they wonder why so many people are on food stamps. Tough times.
I really don't comprehend how people/families make it/get by on that kind of income, even with both spouses working.
Our adult 40 something kids have to budget and spend carefully, (usually!), and both kids and their spouses have what would be considered good 6 figured incomes, though they do live in NJ...
That kind of data simply reinforces the dearth of 'good', or even above subsistence level living that much of western NC 'offers'.
I've been broke, way back, and have been in tough times, way back, and now 'comfortable' since bailing in 2000...I prefer the comfortable level, but I have great regard for those trying to live and probably just getting 'by'. Not sure I would leave the house for 12 bucks an hour, unless I had to.
BR, mD
As much as I love living here, all of Buncombe county is well over-priced for both rentals and home owners.
Since Asheville and many other lovely areas in western NC have been "discovered", the area has evolved to be dependent on tourism. Rentals and homes in most tourist areas are traditionally more expensive than non-tourist areas, and wages are low.
Spend a few weeks in Charleston SC, Sedona AZ, or Cape Cod in the summer. The same high priced homes and high priced rentals are a fact of life for those natives who live there year 'round. People who relocate from high income areas bring with them nest eggs of money in order to make their nest eggs stretch more rather than where they came from. Yet they have no problem paying top dollar for homes or rentals. No problem there, they drive the economy, but with that, comes higher prices. Wages stay the same.
But the local natives who have lived here all their lives and try to make a living wage, have a difficult time of it. They neither want to relocate out of their native areas, or have any ability to do so. Many are low income earners simply because they have low paying service jobs. They cannot afford the high rents or higher home prices.
On the other hand, if folks think the area is too expensive, well....... there's always the four lane.
^^ Oh, I've known about much of what you said for awhile, now. I've been to both Charleston and Cape Cod; I personally cannot understand the allure of either. I do stand by my original post, however I much prefer Asheville to the other alternatives above........
Since Asheville and many other lovely areas in western NC have been "discovered", the area has evolved to be dependent on tourism. Rentals and homes in most tourist areas are traditionally more expensive than non-tourist areas, and wages are low.
I found out that quick after I moved here, rent is really high. Thankfully I had a connection at work that had a small house for rent and it's only a half mile away from where I am now and $100 cheaper. If I were to even look at Asheville, which I didn't and wouldn't, I'm sure I'd pay almost the price I'm paying now and having the house being a dump. You do however have a chance to get lucky though and find a decent house / mobile home with cheap rent but your odds of getting it are slim because of so much competition is in Asheville. If you want cheaper rent, you need to look pretty far away from Asheville. Rent in Marion for example is where you can rent a 3 bedroom house for 450 - 550 / month, or looking the other way you could try Marshall, Canton, or possibly Candler.
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I've been to both Charleston and Cape Cod; I personally cannot understand the allure of either. I do stand by my original post, however I much prefer Asheville to the other alternatives above........
