Minimum Wage, Homelessness and the new Affordable Housing

Homelessness is fueled by the lack of a living wage. Many are forced to live in their vehicles because their paycheck would not cover the cost of housing leaving some to call this the "new affordable housing." (Photo by Eduardo Ramos).

The cost of living is on the rise across metropolitan areas. The average cost for a two bedroom, one-bathroom apartment is $1,337 a month. Meanwhile, a person earning the national minimum wage of $7.25 per hour in a full-time job earns roughly $1,160 a month before taxes and other deductions. If that person begins to earn $13 per hour, their gross monthly salary approaches $2,000. Again, before deductions. Rent alone takes up more than 70 percent of their income. Other necessities such as healthcare and clothing start to seem further out of the picture.

Then, how does a single person afford to pay housing along with their other responsibilities? What is the answer for a single parent who earns significantly less than the cost of living?

Answer: They are forced to work two or three jobs, and barely scrape by.

This is the reality of far too many people living in the United States and around our increasingly global world. Yes, even in developed countries, people one step, a single paycheck away from economic meltdown. Perhaps homelessness.

The novel Coronavirus nakedly exposes a truth that an increasing number of people have been calling on their leaders to address: Income inequality. We have to ask ourselves how this virus would be playing out if people had earned living wages and been able to save for an emergency such as the current public health crisis.

Coronavirus aside, single adults and entire families were already living in their cars and RVs despite the laws against it across the United States. The trend continues to rise. A snapshot of King County in Washington State in 2018 showed a 46 percent surge of people living in their vehicles. King County, however, is just one example of what is happening in cities like Portland, Los Angeles and other major metropolitan hubs.

Families should not have to live in their vehicles or outside, exposed to the elements. Be an active voice for the most vulnerable in your community. Join the advocacy branch of the Transition Projects.

Posted by: Eduardo Ramos, Portland State University