Renting Costs Rise, Wages Stagnate

DATELINE: HAMPTON ROADS, VA.

One can argue that young adults who migrate to other cities from our region do so because the gap between housing costs and wages is too wide.

According to the National Low-Income Housing Coalition, Virginia is the 11th most expensive state in which to live.

Housing costs far surpass wages, the non-profit advocacy group said. And the gap is widening, not just in Virginia, but nationwide.

The report, “Out of Reach 2016,” measures the gap between wages and housing costs nationwide. In Virginia, workers need to make at least $22.44 an hour to afford a two-bedroom home at fair market value. (Based on households spending 30 percent of their monthly income on rent.)

The disparity between wages and housing costs becomes more severe by region and by cities within Virginia.

A recent graduate can find a job in Richmond paying $19.21 an hour, based on the estimated mean wage. Yet he or she would only have to earn $18.58 an hour to afford a two-bedroom apartment at fair market value.

Not so in Norfolk or Virginia Beach.

A recent graduate would have to earn at least $22.12 an hour to afford a two-bedroom apartment in either Virginia Beach or Norfolk.

In Norfolk, the mean wage is is $16.90, a gap of more than $5.00.

It’s worse in Virginia Beach.

The mean wage is only $13.29 an hour.

How do you think that affects recent graduates and young adults who are graduating from colleges and universities with mountains of debt?

Let’s apply the numbers to the general population then.

So what do people do?

Some work two to three jobs to pay their rent.

Others might move.

Still others might apply for subsidized housing, primarily section 8 housing, a federally funded program to pay the difference between a renter’s income and rent and utilities.

Some might even qualify for other types of subsidized housing.

There’s a waiting list in Norfolk and Virginia Beach for section 8 housing. The figures as to whether demand for vouchers has escalated or declined since the recession are inconclusive. Whether up or down isn’t the issue; the issue is that individuals and families need section 8 to live in a decent home.

Again, what do people do?

Live with family, live in hotels or shelters, in the woods or in their cars.

Focus on the gap between housing costs and wages. The smaller the gap, the more affordable the housing; I said more affordable, not necessarily affordable. The converse is true: the wider the gap, the less affordable is housing, forcing individuals and families into a spiral of poverty and desperation.

Focus on the pace of housing costs (rising) compared to the pace of wages (stagnant.) Elected officials, every so often, make bold statements about affordable housing.

The statements are bold, but balderdash.

Most often, the “affordable housing” dialogue turns into an ugly debate about ideology, politics and the American way.

I am not suggesting that government intercede in the housing economy; it already has, by picking up the tab for those of us who can not afford fair and reasonably priced housing.

What I am suggesting is that elected officials and city autocrats get off their collective backsides and get us jobs with wages that exceed or equal housing costs.

Don’t give us another Wal-Mart or retailer or grocery store or fast food restaurant and call that economic development. Don’t give us customer service jobs.

Get something substantial and don’t complain or whine that “we have no land, there’s too much competition from China, students and young adults need more technical skills and the unemployed need to relearn new skills.”

The litany of excuses is inexcusable.

Too much rhetoric, not enough action.