STS BBNJ 08805 & VICINITY FORUM - - NOW 12 YEARS ONLINE 2008-2020

N.J. RENTS TOP 5 IN NATION
Renters having a tough time finding affordable housing

By RICK MALWITZ
STAFF WRITER

The non-profit group, Making it Possible to End Homelessness (MIPH), is trying to do the impossible: Find affordable housing in an unaffordable market.

"Every one of the graduates of my program, if they didn't get a housing subsidy, they could not afford rent," said Executive Director Andrea Krich, whose office is located in New Brunswick.

The MIPH program recently schooled 43 families on ways to escape homelessness. But when they left the program, she said, "Not one could afford (market level) rent."

Monday the National Low Income Housing Coalition released its "Out of Reach 2007-2008" report, and found that New Jersey is fifth from the bottom of lists of states for affordable rental housing.

The study found that a $46,287 annual salary is needed to afford a two-bedroom apartment in New Jersey.

In Middlesex, Somerset and Hunterdon County - sometimes described as New Jersey's Money Belt an annual salary of $53,600 is needed to afford a two-bedroom apartment, according to the Housing and Community Development Network of New Jersey.

The fair-market cost for a two-bedroom apartment in the three counties is $1,340, according to the network.

Among the occupations in New Jersey that do not earn the necessary $53,600 level are beginning teachers, police, fire fighters and hospital employees.

Meg DeJong of Catholic Charities has tried and often failed to place full-time construction workers, warehouse personnel and waitresses in decent affordable rental properties.

"When they find apartments that they can afford they don't want to live there they're dirty and nasty places," she said.

Potential renters also face one hurdle if they have a car, and another hurdle if they don't.

"The price of gas is making it hard to look," said DeJong.

But if they don't have a car, she said, they must find a place near their job or close to public transportation. Other hurdles, said DeJong, are poor credit ratings, and inability to pay up front costs including fees and security deposit.

Susan Holman-James, president of the Network's Executive Board, noted that the New Jersey mean wage is $16.45 an hour.

"People earning that wage have to work 54 hours a week to afford a two-bedroom apartment. For those earning less, the situation is, of course, worse," she said.

The National Low-Income Housing Coalition compiled and analyzed U.S. Census and HUD data in preparing its report. The full report is available at www.nlihc.org, from which New Jersey information is extractable.

The demand for rental housing has increased, said Krich, with the well-documented problems in the housing mortgage industry.

She noted, however, many people whose houses are being foreclosed earn between $100,000 to $150,000.

"They can afford rental property," said Krich. However, as they enter the market, she said, they often crowd out people of lesser means.

The national survey found Hawaii, where workers must earn $29.02 per hour to afford the average apartment, is the nation's most expensive state for renters, followed by California, New York, Massachusetts and New Jersey.

The Associated Press

contributed to this report.

"When they find apartments that they can afford they don't want to live there - they're dirty and nasty places," she said.

Potential renters also face one hurdle if they have a car, and another hurdle if they don't.

"The price of gas is making it hard to look," said DeJong.

But if they don't have a car, she said, they must find a place near their job or close to public transportation.

Other hurdles, DeJong said, are poor credit ratings, and inability to pay up-front costs including fees and security deposits. To edge around the problems, some families will double and triple up, risking being caught for living in overcrowded and illegal housing.

Susan Holman-James, president of the Network's Executive Board, noted that the New Jersey mean wage is $16.45 an hour.

"People earning that wage have to work 54 hours a week to afford a two-bedroom apartment. For those earning less, the situation is, of course, worse," she said.

The National Low-Income Housing Coalition compiled and analyzed U.S. Census and HUD data in preparing its report. The full report is available at www.nlihc.org, from which New Jersey information is extractable.

Renters account for a third of U.S. households, or about 36 million.

The demand for rental housing has increased, said Krich, with the well-documented problems in the housing mortgage industry.

She noted, however, many people whose houses are being foreclosed earn between $100,000 to $150,000.

"They can afford rental property," said Krich. However, as they enter the market, she said, they often crowd out people of lesser means.

The national survey found Hawaii, where workers must earn $29.02 per hour to afford the average apartment, is the nation's most expensive state for renters, followed by California, New York, Massachusetts and New Jersey.

It found the cheapest rents in Puerto Rico, where someone must earn $9.10 per hour, followed by North Dakota, West Virginia, South Dakota and Arkansas.

The Associated Press contributed to this report.