Rising Housing Costs Lead to Rising Instability
By Kahlia Livingston, Fair Housing Project Education & Outreach Coordinator
Recent data from the National Low Income Housing Coalition highlights significant housing costs burdens on Vermonters. These statistics show how housing costs have a greater impact on low-income households, many of which are people in protected classes. Protected classes are groups of people who are legally protected from discrimination based on who they are. When a seemingly neutral policy or action negatively impacts some people more than others, we also call this “disparate impact.”
Here are some specific data points:
- Vermont Minimum Wage: $14.01
- Rent amount that would be affordable for a Minimum Wage worker: $729
- This means a Minimum Wage worker would need to work 67 hours/week to afford a modest 1-bedroom rental home at Fair Market Rent
- Vermont Fair Market Rent (set by HUD): 1-bedroom $1,218; 2-bedroom, $1,546
- 1-Bedroom Housing Wage: $23.43 (This is the amount a person would need to earn to afford a Fair Market Rent unit)
- 2-Bedroom Housing Wage: $29.73
What story does this tell?
When a person spends most of their income on rent, they have less for other costs, such as food, childcare, transportation, recreation, etc. If someone’s income is very high and they spend 50% of it on housing, that still leaves a lot left over for other expenses. However, when a person’s income is low, 50% is a much smaller amount and doesn’t leave much.
When people have limitations or a crisis that affects their ability to work, take care of themselves or their families, or seek resources or adequate medical care, these housing costs burdens have a great impact on their livelihood, wellbeing, and their communities. The average Vermonter earns $17.67/hour, which would make $919/month an affordable rent. However, the average cost for a studio or one-bedroom “Market Price” apartment in Vermont is between $1,600-$1,800 per month, which is far beyond what is considered “Fair Market Rent.” This means the average Vermonter would have to work 1.7 full-time jobs to afford rent at fair market rate or 2.25 full-time jobs to afford rent at the average Market Price cost without having any income leftover for other expenses. Many people with membership in protected classes may have physical, mental, or emotional impairments, lack of time or flexibility in schedule, or family responsibilities. These conditions can make it harder to access jobs, higher education, or professional development and skill-building opportunities to increase their income and reduce or prevent housing and food insecurity. Many people in protected classes are elderly or have disabilities and have fixed incomes that cannot accommodate the increasing housing costs. This dynamic can create a cycle of poverty that can be difficult to improve without external support. Many rental units throughout Vermont exceed the Fair Market Rent amount.
And it’s not just the cost of housing that can limit members of protected classes. Moving is expensive and many people don’t have the opportunity or time to move into a new apartment every few years once their rent becomes too high. Some people don’t have access to transportation that can get them to and from a job or to an area with more affordable housing. Rising housing costs will ultimately lead to increased housing insecurity and add to the population of unhoused people.
A shortage of affordable housing is a public health crisis that affects everyone. The growing costs to access and sustain housing creates a burden on most people and those with low incomes and barriers are affected the most. It is crucial that we find solutions to address these costs for everyone and protect the most vulnerable. As you reflect on this data, consider the true cost of housing instability and how it impacts your community.
Want more Fair Housing information? Contact us to schedule a Fair Housing Training, “Know Your Rights” Fair Housing and Tenant Skills Workshop, or a community housing discussion: (802) 660-3456 ext 110, email: fhp@cvoeo.org.
Sources:
https://nlihc.org/oor/state/vt