Rent Too Pricey For Many Chatham Workers, Report Says

CHATHAM, NJ — According to recent statistics, the cost of renting in New Jersey is so high that two people earning the minimum wage and working full-time would struggle to afford a one-bedroom apartment in Chatham.

The National Low Income Housing Coalition released its annual report on rental costs, showing that many Americans make less than their area's "housing wage" — the hourly, full-time wage needed to afford fair-market rent without spending more than 30 percent of their income.

According to the NLIHC, New Jersey has one of the highest minimum wages in the country, at $14.13 per hour.

However, the state's market rate for a two-bedroom apartment is $1,742 per month, which would necessitate an hourly wage of $33.50, which amounts to $69,675 per year, or 2.4 full-time, minimum-wage jobs.

The average renter wage in the state is $24.40 per hour, with the average renter able to afford $1,269 in rent.

In Morris County, affordable rent for a full-time worker would amount to $735—not a price tag you're likely to see. According to the data, the annual income required here to afford two-bedroom rent is $64,240.

Here's how rental costs are broken down in Chatham:

• wage needed for one-bedroom housing: $38.08
• two-bedroom housing wage: $45.77
• fair-market rent for a one-bedroom home: $1,980
• fair-market rent for a two-bedroom home: $2,380

According to the NLIHC, 26 percent of tenant households in New Jersey earn less than what is required to afford two-bedroom rent. According to the report, even affording a "modest" one-bedroom apartment at market rate necessitates 79 minimum-wage hours per week.

However, many professions that pay well above the minimum wage fall short of the "housing wage" of $27.85 required to afford a one-bedroom rental in New Jersey. According to the report, some of these occupations include:

• nursing assistants: median wage of $19.05 in New Jersey
• office clerks: $21.65
• maintenance and repair workers: $23.97
• bookkeeping, accounting and auditing clerks: $25.09

According to the housing coalition, high rents, combined with the end of pandemic-era benefit programs, have exacerbated low-income renters' financial insecurity. The organization urged federal officials to intervene.

"To address the country’s long-term housing affordability crisis," said NLIHC President Diane Yentel, "Congress and the Biden-Harris administration must protect and expand our country's vital affordable housing and homelessness programs, and implement robust tenant protections."

The NLIHC says "(addressing) the roots of the housing affordability problem requires: a sustained commitment to investing in new affordable housing; preserving affordable rental homes that already exist; bridging the gap between incomes and rent through universal rental assistance; providing emergency assistance to stabilize renters when they experience financial shocks; and establishing strong renter protections."

View the NLIHC's full report: Out of Reach 2023: The High Cost of Housing.