Massachusetts is among the most expensive states for renters, according to a new report released Monday by the National Low Income Housing Coalition (NLIHC). Massachusetts was the most expensive state for suburban and rural renters, requiring an average salary of $29.68 per hour in order to afford a two-bedroom apartment in a non-metro area, according to the study.
High-priced resort enclaves were a big part of the reason — Nantucket County is the seventh-most expensive in the nation, with a salary of $32.56 per hour required for a renter to afford a two-bedroom on the island.
"The so-called weakness in the housing markets has not translated into affordability for Americans, as the stock of housing is mis-matched to the need," said Danilo Pelletiere, research director for the NLIHC.
Overall, Massachusetts was the seventh-most expensive state nationwide, with the average renter required to earn about $23.25 per hour to afford a two-bedroom apartment in the state. In Massachusetts, renters make up about 35 percent of the housing market, according to the report, and have an average estimated hourly wage of about $16.17. The average estimated wage for renters nationwide is $13.52, down almost a dollar from last year’s average estimated wage of $14.44.
The NLIHC report reveals that even though high unemployment is continuing to put pressure on wages, rents across the country are continuing to increase, with the average family needing to make a little more than $38,000 a year in order to afford a two-bedroom apartment. For families relying on a single wage earner, that works out to $18.46 per hour.
"There is a shortage of housing that is affordable to the lowest income people in our country," said Sheila Crowley, president of the NLIHC. "Existing low-income housing projects are inadequate to address this need."
Changing the mortgage interest deduction to a tax credit could help free up funds to subsidize further affordable housing suggested Crowley, stating an increase of $30 billion per year to the National Housing Trust Fund could address the gaps and allow for the creation of more than three million units of affordable housing.
