NJ Spotlight published the following article on 5/5/2014. To read the full article, click here.
Affordable Housing Remains Out of Reach for Majority of New Jersey Renters
Colleen O’Dea | May 9, 2014The proposal last week of rules meant to restart the construction of affordable housing in New Jersey are sorely needed in a state where three of every five renters can’t easily afford a two-bedroom apartment.
Earlier this spring, the National Low Income Housing Coalition (NLHIC) released its annual Out of Reach report for 2014, which showed that a two-bedroom apartment is unaffordable to 59 percent of renters in the state. In order for housing to be considered affordable, a person should not spend more than 30 percent of income on rent and utilities.
Fair-market rent for a two-bedroom unit in New Jersey is about $1,300, making it the fourth most expensive state in the nation, behind Hawaii, California, and Maryland.
To be able to afford that without paying more than 30 percent on housing costs, a person would need to earn almost $25 an hour. The state’s 1.1 million renter households — about a third of all households in New Jersey — make $16.34 an hour. For that wage, an apartment is affordable at $850 a month. To afford a two-bedroom unit at $1,300, the typical renter would need to work one-and-a-half full-time jobs.
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