The tri-state area is proving to be among the most expensive places to rent in the nation, a new study reveals.
According to Out of Reach, a report published jointly by the National Low Income Housing Coalition (NLIHC) and the Housing and Community Development Network of New Jersey, New York and New Jersey place as the 4th and 5th most costly states when it comes to rent costs.
For someone in New York working at minimum wage of $16, they would have to work 108 hours a week to afford a modest one-bedroom rental home at fair market rent or 121 hours for a two-bedroom rental, according to the study.
“In New York, the Fair Market Rent (FMR) for a two-bedroom apartment is $2,520. In order to afford this level of rent and utilities — without paying more than 30% of income on housing — a household must earn $8,400 monthly or $100,804 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into an hourly Housing Wage of $48.46,” according to the report.
As the fifth most expensive state to rent, New Jerseyans working minimum wage of $15.92 an hour would have to work 93 hours to afford a modest one-bedroom or 110 to afford a two-bedroom.
“In New Jersey, the Fair Market Rent (FMR) for a two-bedroom apartment is $2,282. In order to afford this level of rent and utilities — without paying more than 30% of income on housing — a household must earn $7,607 monthly or $91,289 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into an hourly Housing Wage of $43.89,” according to the report.
Meanwhile, the same study list Connecticut as the 9th most expensive state, where one needs to work 75 hours at the state’s minimum wage rate of $16.94 to be able to afford a one-bedroom rental.
So which other states round up the top 10?
California
Hawaii
Massachussetts
New York
New Jersey
Washington, D.C.
Washington
New Hampshire
Connecticut
Florida
To see the complete list, or for more information, click here.