As we all know, homeowners are being hit hard by the recession, but have you thought about how it is affecting renters? A new report shows that Utah housing is becoming less affordable. According to National Low Income Housing Coalition, In Utah, to afford a two bedroom apartment, that is relatively decent, around $750 a month, you would need to be making around $14.50 an hour. The average wage is under $12 an hour.
Not only are people not making enough money, but due to the recession the demand for affordable housing goes way up, causing renters to get a roomate or move in with family. A recommendation to keep in mind for renters would be to make yourself more desirable by taking steps to improve your credit. Those looking to rent between $500 and $600 a month, keep in mind your options are limited.
Quick Facts about Utah
- The housing wage in Utah is $14.16 per hour. That is, to afford a modest two-bedroom unit (i.e., a unit at HUD’s Fair Market Rent for the region), a renter must earn an hourly wage of $14.16, which is 216% of the $6.55 minimum wage
- In Utah, the estimated percent of renters unable to afford a two-bedroom apartment at Fair Market Rent is 39%
- In Utah, the estimated mean (average) wage is $11.75, and workers earning this wage have to work 48 hours per week to afford a two-bedroom apartment.
- Minimum wage workers earning $6.55 per hour must work 86 hours per week to afford a two-bedroom unit.
- An extremely low-income household earning $19,361 (or 30% of Utah’s Area Median Income of $64,548) can afford a monthly rent of no more that $484, while the Fair Market Rent for a two-bedroom unit is $736.
- Supplement Security Income (SSI) monthly payment is $674, and an affordable rent should be $202
- SSI have an affordability gap of $534 per month, minimum wage workers a gap of $395, extremely low-income households a gap of $252, and mean wage workers have gap of $125 a month
- Utah Ranked 23rd out of 51 jurisdictions in terms of housing wage for a two-bedroom apartment
The RedSign team has partnered with a credit repair company and is now helping several people fix their credit and position themselves to buy a home. If you would like to learn more about how we help people get out of renting and into home ownership please call us at 801-358-0970.
