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National Low Income Housing Coalition Releases Out of Reach 2023: The High Cost of Housing Report.

National Low Income Housing Coalition Releases Out of Reach 2023: The High Cost of Housing report. The Out of Reach report highlights the gulf between the wages people earn and the price of modest rental housing in every state, county, metropolitan area, and combined non-metropolitan area in the U.S.

The State of Illinois hourly wage needed to rent a 2 bedroom apartment is $24.59. This assumes the renter is spending 30% of his/her/their income on rent – allowing for one to remain healthy and more likely to achieve well-being. When more than 30% of income is spent on rent, then we know health and well-being declines as there is significant research to show this. Research also shows that domestic violence increases when there are monetary challenges in a household.

For that same 2 bedroom apartment, I have broken down the rent/hourly income needed by residents in a few communities I am currently working in to give an idea of the differences location makes on rent. Sterling, IL ($826mo/$15.88HR), City of Rockford Illinois ($935mo/$17.98HR), and City of Naperville ($1,830mo/$35.19HR).

To add other insights into this analysis – as a developer, my costs to build an apartment building in any of the communities mentioned above is nearly the same for materials and labor. The difference is negligible. Land cost is the only real variable in construction costs.

So how many people are spending more than 30% of their income on rent (housing burdened) in these communities?

  1. In Sterling, dependent on neighborhood, renters spending more than 30% of their income on rents starts at 27% and rises up to 57%.
  2. In Rockford, dependent on neighborhood, renters spending more than 30% of their income on rents starts at 38% and exceeds 60%; with the 60% often in our poorest neighborhoods.
  3. In Naperville, dependent on neighborhood, renters spending more than 30% of their income on rents starts at 0% and exceeds 60%, in four small pockets.

Tell me your thoughts on this data and how you see the effects of the lack of affordable units in your community effecting your city.

Report can be found here: https://lnkd.in/gSVC2w5m)