Live data from Hacker News

Minimum wage workers cannot afford rent in any U.S. state

cnbc.com

31–40 of 147 posts

Re: Minimum wage workers cannot afford rent in any U.S. state

#31
post #5

There's an important caveat, before everyone jumps on the title by itself: > The report, released Tuesday, defines “affordable” as spending no more than 30% of monthly income on rent, in line with what most budgeting experts recommend. The second caveat is this is rent for a 2 bedroom apartment; though they do say that it's also ~95% of 1 bedroom apartments. No comment is made on studio apartments or having roommates…

That's true - it's looking at 2BRs. But whatever metric we consistently look at over time, is something we can make long term comparisons for.

And fwiw, it shows just how difficult it would be for a single parent to get by in this society.

Re: Minimum wage workers cannot afford rent in any U.S. state

#32
post #27

Earlier quoted context omitted.

Hmm wonder why you are getting downvoted for a well-written question about what data is important.

It's kind of an underhanded trick where the guy is redirecting the conversation to something else. I'd probably prefer that people meet him head on and debunk him instead of downvoting him into oblivion, but I don't blame people for just booting his bad-faith argument out of the conversation. To meet with the comment head-on: You assert that nobody is supporting a family on minimum wage, so there's no reason to incre…

It's not an underhanded trick. Please respond to the most charitable interpretation of my comment, as per HN guidelines.

> To meet with the comment head-on: You assert that nobody is supporting a family on minimum wage, so there's no reason to increase the minimum wage or have social welfare programs that help people on minimum wage.

That's not at all what I'm trying to insinuate. I even said that:

> I'm most interested in what percentage of those with dependents are working minimum wage jobs and what percentage of those that started out with minimum wage jobs have been unable to increase their earnings. MY guess is that these numbers are also terrible, but this is the thing to get down.

I literally said that I bet the numbers that I'm interested in will likely show that there are too many people with dependents working minimum wage jobs. That doesn't mean we shouldn't track the data. That is what shows us what will help.

Please respond in good faith.....

Re: Minimum wage workers cannot afford rent in any U.S. state

#33

Minimum wage workers should mainly be teenagers, young single people, and other dependents who don't need to live alone or for a family, and for whom minimum wage makes sense while they advance in careers. I honestly don't care if minimum wage means you can afford rent. I'm most interested in what percentage of those with dependents are working minimum wage jobs and what percentage of those that started out with mini…

Australia does something interesting - minimum wage scales with how old the person is. Say it's $15/hr for 18 year olds; 19 year olds get $16 as a minimum, and so forth. Curious what you think about that idea.

There are some laws like this in the US. Some are state based, but some are federal...

"...a special minimum wage of $4.25 per hour applies to employees under the age of 20 during their first 90 consecutive calendar days of employment with an employer"

"Other programs that allow for payment of less than the full Federal minimum wage apply to workers with disabilities, full-time students, and student-learners employed pursuant to sub-minimum wage certificates. These programs are not limited to the employment of young workers."

https://webapps.dol.gov/elaws/faq/esa/flsa/003.htm?_ga=2.219...

Re: Minimum wage workers cannot afford rent in any U.S. state

#34

Earlier quoted context omitted.

Minimum wage workers are only a few percent of the American labor force, and about half of them are under 25. Only about 20% were between 35 and 55. https://www.bls.gov/opub/reports/minimum-wage/2018/pdf/home....

I'd say 20% is not a small number! I'd also point out that "just above minimum wage" isn't much better than minimum wage. For example, if you work for many large chains that pay minimum wage you're likely to get a raise at some point. That raise may take you from, say, $10.00/hr to $10.50/hr. Hurrah! I think a better metric might be (minimum wage + (20% * minimum wage)). That snags all those people who work at "minim…

Well what percentage of these are non-breadwinners? Could it be stay at home parents who are making supplementary income?

> I think a better metric might be (minimum wage + (20% * minimum wage)). That snags all those people who work at "minimum wage jobs" but have stuck around for a few years and gotten a few small pay increases, but are still being paid a wage that is a function of minimum wage.

Yes, there needs to be better information.

> Just riffing here to be honest, but I do get a little uppity when people claim minimum wage jobs are just for teenagers or other "less important" wage earners. Part of this was from working in retail and food service when I was much younger and knowing a lot of adults, many single parents, working for close to minimum wage. Anecdotal, I know.

This is terrible, and just goes to show my point -- we need to be tracking the important number: how many people who need to afford rent for a separate unit (usually those with dependents but not always) cannot afford to do so.

EDIT: Here are some stats on low-wage workers by age. It does show a good distribution, but I think we need to make the tails thinner: https://www.statista.com/statistics/298866/percentage-of-low...

Re: Minimum wage workers cannot afford rent in any U.S. state

#35
post #8

Is minimum wage workers affording an average 1-2 bedroom apartment with no other householders a goal we have set? The French minimum wage is 1,521 euro per month. 30% of that is 456 euros, or about $513. According to the underlying study, the average 1BR in Alabama is $665. Is housing in France, on average, really that much cheaper than Alabama? I don’t think these abstract targets are very helpful. According to the…

Is expecting minimum wage workers to all live in Alabama a goal we have set?

Look what happens when politicians responsibly build post offices and the numerous other programs that made money until political meddling.

Look at what happened to workers when taxes were way higher! Omg those stupid politicians!!

Is the profiteering of a minority of the species a goal we have set?

Is your ideology the goal we should have set? Or is it just automated energy sucking deflection away from ideas that rustle your jimmies wrapped around your limbic system?

We share one physics, one planet. Just because you can imagine and emit alternate sounds to someone else doesn’t mean the ideas are feasible or real?

Reality comes with some pretty tight constraints. Progressivism away from grandpas political talking points is one of them.

Are we less free in some real way given the time wasting mess of our “free market”? Or would it be that your brain is just not used to processing the idea?

Are you measuring the impact to society and reality or just chomping at the bit to react?

Bureaucrats aren’t going away and already control your life in very intimate ways! Human society has yet to create that magical completely free system or completely gridlock itself to death.

Kind of wonder if you’re just shouting at a mirage. It’s just people.

Re: Minimum wage workers cannot afford rent in any U.S. state

#36
post #8

Is minimum wage workers affording an average 1-2 bedroom apartment with no other householders a goal we have set? The French minimum wage is 1,521 euro per month. 30% of that is 456 euros, or about $513. According to the underlying study, the average 1BR in Alabama is $665. Is housing in France, on average, really that much cheaper than Alabama? I don’t think these abstract targets are very helpful. According to the…

Having worked a lot in a rental market with a very active housing subsidy program, I agree that the administration of such programs is an actual nightmare, but you really are missing the point I think.

Start with the assumption that people need to be able to afford a place to live, and that a full time job should be able to achieve that. Do you agree?

Now, if we both agree that a housing subsidy program is an administrative nightmare, what's left? Simple: Regulating prices on the housing market.

A subsidy is a nightmare to administer; is subject to corruption, mis-targeting, abuse, and extreme wait lists; and drains public resources. So why do we do it? Simple: Because the real estate industry has lobbied the government to pursue this as a means to address housing inequality. Rather than being told that the earnings of their investment properties will be capped by regulation, the government is writing a check to make up the difference.

So now, after years of waiting, a single mother of two might get a 3/4 of her rent paid by a subsidy. The apartment needs to pass ridiculous inspections which are conducted historically by specialized contractors who benefit from failing due to re-inspection fees, and they will fail an inspection because a screw is missing from a light switch cover, blowing up a lease deal and elongating the timeline for a subsidized move-in by months. It sucks for the residents, and it sucks for the landlord from a administrative/management perspective (mainly dealt with by hired management), but at the end of the day, they have a government-guaranteed rent payment for a greatly inflated rent market. Coronavirus cut your tenant's hours?! No problem! At least 3/4 the rent will be paid, and the margins are still profitable.

And we wonder why wealth inequality is growing in the US! This literally inflates the rental market by creating more demand for overpriced housing than exists, by creating a class of people who can afford it only through a majority subsidy. It also encourages investment property purchases by doing so, in turn creating more competition in the buyers market and causing price inflation there as well. This also has the effect of keeping more people renting instead of being able to buy.

In conclusion, PEOPLE NEED HOUSING! Real estate industry doesn't need subsidies. Yes,that includes private landlords with investment properties. Someone else's housing or health care shouldn't be an unregulated investment opportunity if we care about the well being of the people.

Re: Minimum wage workers cannot afford rent in any U.S. state

#37
post #5

There's an important caveat, before everyone jumps on the title by itself: > The report, released Tuesday, defines “affordable” as spending no more than 30% of monthly income on rent, in line with what most budgeting experts recommend. The second caveat is this is rent for a 2 bedroom apartment; though they do say that it's also ~95% of 1 bedroom apartments. No comment is made on studio apartments or having roommates…

> No comment is made on studio apartments or having roommates. To me this is the most telling part. When you are poor you need to have one or more roommates to afford housing and this is not new. What is wrong with roommates? I do think the US could use more small/studio apartment options for those who have a bit more money and prefer to live alone. I lived in a small studio once and enjoyed it, though I usually had…

It depends on what the goal should be. Having roommates is fun when you're 20 something. Not when you're trying to support a family.

Re: Minimum wage workers cannot afford rent in any U.S. state

#38
post #8

Is minimum wage workers affording an average 1-2 bedroom apartment with no other householders a goal we have set? The French minimum wage is 1,521 euro per month. 30% of that is 456 euros, or about $513. According to the underlying study, the average 1BR in Alabama is $665. Is housing in France, on average, really that much cheaper than Alabama? I don’t think these abstract targets are very helpful. According to the…

Look at it from the other direction. Is working 40 hours per week but not being able to afford a 1 or 2 bedroom apartment a goal we want to set? If so, we have achieved it! I think most of us like the idea that if you put in 40 hours of work every week, regardless of the specific job, you are able to afford a basic standard of living.

Not all 40-hour-a-week jobs are valuable enough to support a high adult standard of living. If adults are still doing those jobs, it’s not a problem with the jobs.

Re: Minimum wage workers cannot afford rent in any U.S. state

#39
post #8

Is minimum wage workers affording an average 1-2 bedroom apartment with no other householders a goal we have set? The French minimum wage is 1,521 euro per month. 30% of that is 456 euros, or about $513. According to the underlying study, the average 1BR in Alabama is $665. Is housing in France, on average, really that much cheaper than Alabama? I don’t think these abstract targets are very helpful. According to the…

>Is minimum wage workers affording an average 1-2 bedroom apartment with no other householders a goal we have set?

There's a very good chance there are people whose quality of life would be drastically diminished if they had to share an apartment. Off the top of my head, those with embarrassing or inconvenient medical issues, single parents, people who always feel some level of stress around other people (there are a lot of us).

When setting floors by policy, we should think of the people who don't fit the norm. If they don't get help from somewhere else, they're screwed.

Re: Minimum wage workers cannot afford rent in any U.S. state

#40
post #8

Is minimum wage workers affording an average 1-2 bedroom apartment with no other householders a goal we have set? The French minimum wage is 1,521 euro per month. 30% of that is 456 euros, or about $513. According to the underlying study, the average 1BR in Alabama is $665. Is housing in France, on average, really that much cheaper than Alabama? I don’t think these abstract targets are very helpful. According to the…

> Is minimum wage workers affording an average 1-2 bedroom apartment with no other householders a goal we have set?

It's not a goal we set but it's one we mostly achieved none the less, depending on your specific area and minimum wage. A blue collar (minimum - low wage) worker used to be able buy a house and raise a family on a single income. People are poorer than they were decades ago, at least where it counts.

Post reply on HN