Housing Too Costly for Many in Virginia

In order to afford a modest, two-bedroom apartment at Fair Market Rent in Virginia renters need to earn $21.10 per hour. This is Virginia’s 2015 Housing Wage, revealed in a national report released today. The report, Out of Reach 2015, was jointly released by the Virginia Housing Coalition and the National Low Income Housing Coalition, a Washington, DC-based research and advocacy organization.

Every year, Out of Reach reports on the Housing Wage for all states, counties, metropolitan areas and combined non-metropolitan areas in the country. The report presents housing costs nationwide, highlighting the gap between what renters earn and what it costs to afford rent at fair market value.

Bob Newman, President of the Virginia Housing Coalition, noted that “affordability for renters in Virginia is a growing problem as rents continue to rise while incomes have remained flat.” He also stated that he was encouraged by the state’s continued support for the Virginia Housing Trust Fund that was launched in 2013.  “With cutbacks to housing programs at the Federal level, it is important that states step forward and address their housing challenges.  We need to make sure that our housing market serves all Virginians.  This is important not only to those who need affordable housing, but it also means jobs and economic development for our communities.”

The federal minimum wage has remained at $7.25 an hour without an increase since 2009, generating debate and calls to raise the wage both at the state and federal level. In no state, even those where the minimum wage has been set above the federal standard, can a minimum wage renter working a 40 hour work week afford a two bedroom rental unit at Fair Market Rent. Working at the minimum wage of $7.25 in Virginia, a family must have 2.9 wage earners working full-time, or one full-time earner working 116 hours a week, to afford a modest two-bedroom apartment.

The typical renter in Virginia earns $16.55, which is $4.55 less than the hourly wage needed to afford a modest unit.

The national Housing Wage in 2015 is $19.35. This year, Virginia is the 11th most expensive state in the nation for renters.

For additional information, visit: http://thevirginiahousingcoalition.org/reports/ 

Virginia Housing Coalition, 205 N. Robinson Street, Richmond 23220