NEW ORLEANS — In order to afford a modest, two-bedroom apartment at fair market rent in Louisiana, renters need to earn $16.63 per hour. This is Louisiana's 2018 Housing Wage, revealed in a national report recently released by the National Low Income Housing Coalition (NLIHC). The report, Out of Reach: The High Cost of Housing, was jointly published by the NLIHC and HousingNOLA.
Every year, Out of Reach reports on the Housing Wage (the hourly wage a full-time worker must earn to afford a modest and safe rental home without spending more than 30 percent of his or her income on housing costs) for all states, counties, metropolitan areas, and ZIP codes around the country. The report highlights the gap between what renters earn and what it costs to afford a home at Fair Market Rent.
"This study, alongside another recent data analysis from National Equity Atlas, further proves the detrimental effects of high housing costs and stagnant wages on Louisianians," said HousingNOLA Executive Director Andreanecia Morris. "We have to do better as a city, as a state, and as a nation to overcome the current affordable housing crisis. This is why we've pledged to work with our new Mayor and City Council to reach the city's five-year commitment of 7,500 units as part of HousingNOLA's 10-Year Plan."
The typical renter in Louisiana earns $14.07, which is $2.56 less than the hourly wage needed to afford a modest unit. In New Orleans, approximately 60 percent of renters pay too much for housing. If New Orleans renters were able to pay an amount they could afford on living, they would have an extra $7,200 per household to spend in their communities each year.
"The housing crisis has reached historic heights, most negatively impacting the lowest income renters," said Diane Yentel, President and CEO of the NLIHC. "Too often, a low-wage worker must choose between paying for rent, healthcare, childcare, and other basic necessities. Rather than threatening the housing stability of families struggling to keep roofs over their heads, Congress must invest in expanding housing solutions that provide stable homes for the lowest income people in our country."
A copy of the Louisiana Out of Reach 2018 report is available here. For additional information, visit nlihc.org/oor.
