The Trenton Times published the following article on April 1, 2014. To read the full article, click here.
N.J. the 5th priciest area for renters in U.S., Mercer County falls in the middle of state rankings
By Cristina Rojas/The Times of Trenton
on April 01, 2014 at 6:40 AM, updated April 01, 2014 at 6:59 AMWith the rise in housing costs outpacing that of wages, there is no state where a full-time minimum wage worker can afford a one- or two-bedroom rental unit at the fair market rent, according to a report released last week by the National Low Income Housing Coalition.
The report, “Out of Reach 2014,” ranked New Jersey as the fifth most-expensive state, behind Hawaii, the District of Columbia, California and Maryland.
For each state, metropolitan area and county, the study determined a “housing wage” — the earnings necessary for a renter to pay no more than 30 percent of their income on rent, the threshold usually used to define affordable housing.
In New Jersey, a minimum-wage worker would need to make $24.92 an hour, or $51,838 a year, to afford a $1,296-a-month, two-bedroom rental apartment. He or she would need to work 121 hours a week, 52 weeks a year or a household would need to have three minimum-wage earners working 40 hour-plus weeks year-round.
In Mercer County, ranking around the middle of the pack as the ninth most-affordable county, a worker would need to earn $23.56 an hour, or $49,000 a year, to afford a $1,225-a-month, two-bedroom rental apartment.