Housing affordability gap: The salary needed to afford housing locally grew in the past year
July 06, 2024 by The housing affordability crisis in Bartholomew County has worsened over the past year, as reported by the National Low Income Housing Coalition’s “Out of Reach” 2024 report. The hourly wage needed to afford a fair market rate two-bedroom apartment surged by 15%, reaching $23 per hour in fiscal year 2024, while the average hourly wage of local renters fell by nearly 2%, dropping to $22.92 over the same period. Statewide, Indiana saw similar trends with the hourly wage requirement for a two-bedroom apartment rising to $22.07, a $3.07 increase from the previous year, and the average renter’s hourly wage climbing slightly to $17.92. Despite these increases, both the housing wage and renter wage in Bartholomew County and Indiana remain lower than the national average of $32.11 needed to afford such housing. The disparity highlights a growing gap where housing costs outpace income growth, impacting local renters, particularly seniors on fixed incomes. The impending closure of the Villas apartments due to the expiration of federal subsidies further underscores the urgent need for affordable housing solutions in Columbus. The city’s ongoing housing study aims to address these challenges and identify strategies to preserve and expand affordable housing options amidst potential future losses. Nationally, the affordability issue extends across 33 states, affecting workers earning median wages insufficient to afford modest rental homes, reinforcing the call for substantial investments in affordable housing to alleviate the ongoing crisis.