With rising housing costs an ongoing issue, a new report shows how fast rents have increased in Maryland and nationwide.
The National Low Income Housing Coalition's "Out of Reach" report shows that, even when accounting for higher state- and county-level minimum wages, the average minimum-wage worker in the United States would have to work 95 hours a week to afford a one-bedroom rental home.
Diane Yentel, coalition president and CEO, noted renters with the lowest incomes have faced a long-standing trend of rents rising faster than wages.
"Between 2001 and 2021, rents increased about 18%," she explained, "while household income only increased by about 3%."
In Maryland, the report found the fair market rent for a two-bedroom apartment is more than $1,900 a month, which translates to a Housing Wage of nearly $37 an hour, the ninth-highest in the nation.
The coalition said affordable rental housing isn't likely to be built without public subsidies. The availability of affordable housing is constrained in part by the high development and operating cost of new rental housing, resulting in market forces that drive developers to target higher-end customers.
The report shows the median monthly rent for new multifamily units in the third quarter of last year was more than $1,800 a month, while just 2% of new units had rents less than $850 per month.
As supply constraints drive costs higher, Yentel predicted the nation's housing crisis will worsen.
"Increased rents are resulting in increased homelessness," she insisted. "The U.S. Government Accountability Office has found that a $100 increase in median monthly rent is associated with a 9% increase in homelessness in that community."
For its part, the federal government's ability to build new housing has been limited since 1999, when the Faircloth Amendment capped the number of public housing units that can be legally owned by the U.S. Department of Housing and Urban Development (HUD).
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Los Angeles faces a severe shortage of affordable housing but Monday, the city is asking a judge to put a hold on a lawsuit which aims to clear the way for new development.
The City Council approved permits three years ago for the Venice Dell complex, which would provide new housing units meant for low-income families and people experiencing homelessness. However, developers have yet to break ground on the project. The lawsuit, filed by the LA Forward Institute and community members, claims LA Council member Traci Park and City Attorney Hydee Feldstein Soto have deliberately held up the project.
Katie McKeon, attorney at the Western Center on Law and Poverty, said the developer has made many concessions but the city continues to drag its feet.
"The developers made some design tweaks to take away some of the architectural features that many residents didn't like," McKeon noted. "They have committed to construct a parking structure replacing every single one of the parking spaces that's currently on the lot now."
Council member Park did not respond to a request for comment but has previously argued for a transportation hub in the area. City Attorney Feldstein Soto has criticized the project as too expensive. The Coastal Commission already approved the Venice Dell project but the City Transportation Commission opposed it. The city has not moved to tear down an aging building on the site.
McKeon claimed the city is working against its stated goal to ease the housing crisis.
"The city is spending quite a large amount of money to not build housing because they are defending all of these lawsuits that are saying, 'You should be building this housing. Why are you not building this housing?'" McKeon observed.
The Legal Aid Foundation of Los Angeles has filed two additional lawsuits seeking to compel the city to allow Venice Dell to proceed.
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Advocates for homeownership in Oregon are celebrating a new bill which sets targets to boost the state's homeownership rate, currently at 64%, just below the national average but among the lowest in the country.
The bill sets a goal of 65% by 2030, with incremental increases every five years until 2045.
Shannon Vilhauer, executive director of Habitat for Humanity of Oregon, said while the state also needs more rental housing, homeownership brings many long-term benefits, including better education outcomes for children.
"We just don't want to lose sight of this important wealth building, stabilizing opportunity for all of our communities," Vilhauer explained. "As we prioritize production together, let's keep homeownership in the mix."
On the heels of the victory, Vilhauer was shocked to hear the current state budget nearly zeros out funding for homeownership assistance programs, which does not set the state up well to begin meeting the new goal. She stressed Habitat will do everything it can to restore the funding.
Vilhauer added for most people living in Oregon and the United States today, homeownership is affordable housing.
"If you were fortunate enough to buy your home in Oregon 20 years ago, your mortgage payment today is less than half of market rate rent for a two-bedroom apartment," Vilhauer pointed out.
Brock Nation, policy director for Oregon Realtors, said results from a survey last year found about three quarters of non-homeowners consider homeownership to be one of their highest life priorities.
"Those numbers were even higher for communities of color, where we know there's about a 15.3% racial homeownership gap in the state of Oregon right now," Nation outlined.
For communities of color, he reported about 96% of people put homeownership at the top of their priority list.
Disclosure: Habitat for Humanity of Oregon contributes to our fund for reporting on Housing/Homelessness, and Social Justice. If you would like to help support news in the public interest,
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Gov. Bob Ferguson has signed Washington's first rent stabilization law and renters and advocates who fought for the bill are breathing sighs of relief, after years of effort.
The new law caps the amount landlords can raise yearly rents at 7% plus inflation or 10%, whichever is less. For manufactured homes, increases are limited to 5%.
Caroline Hardy, secretary of the Leisure Manor Tenants Association and a retiree in Aberdeen whose manufactured home community faced up to 50% yearly increases under new corporate ownership. She said her community is mostly seniors living on fixed incomes and the increases had become untenable.
"It was getting to the point where people were skipping meals and they were not able to afford prescriptions," Hardy recounted. "I couldn't afford my diabetic medicine. It was getting scary and we were getting mad."
Landlords associations and real estate agencies fought hard against the bill, saying it would impede development. Proponents countered under the law, new construction is protected from the cap for the first 12 years.
Hardy spent three years knocking on doors, making phone calls and testifying in support of the new law. She said she was deeply relieved to hear it passed and is grateful to Sen. Emily Alvarado, D-Seattle, and Sen. Yasmin Trudeau, D-Tacoma, who sponsored the bill.
"We were so thankful that they listened to us, and they helped us," Hardy added. "It was a great accomplishment. We're really proud of ourselves."
Nine Washington counties had record-breaking eviction rates in 2024. The state now joins Oregon and California as the only states in the nation to enact a statewide limit on how much landlords can raise the rent.
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