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Most Expensive Real Estate Rental Markets In The U.S.

According to "Out of Reach", the annual report of the National
Low Income Housing Coalition (NLIHC), prices of many rental
markets have increased sharply over the past few years making
affordable housing difficult for low and medium wage workers.

The report reveals a marked disparity between people's earning
and rental housing costs. This difference is sizeable and has
increased every year. In fact, the cost of rental housing has
gone up by 28% in the past 7 years, much beyond the wages earned
by the people who need affordable housing the most.

NLIHC calculated the hourly wage needed to afford the rent and
utilities of a market rate rental home in each state. Affordable
housing was defined as the cost of a two-bedroom rental home
without having to spend more than 30% of one's gross income on
housing costs. The report terms this rate of affordability as
the 'national housing wage', which has increased to $16.31 from
last year's $15.78.

Housing prices in many rental markets far exceed the wages of
the renters, making them the least affordable rental markets.
Based on the Out of Reach 2006 report, Hawaii stands at the top
of the ten most pricy rental markets for a two-bedroom rental
home. Listed below are top 10 most expensive states for rental
housing:

1. Hawaii - hourly wage of $23.53 needed to afford a two-bedroom
rental home.

2. California - hourly wage of $22.86 needed to afford a
two-bedroom rental home.

3. Massachusetts - hourly wage of $22.65 needed to afford a
two-bedroom rental home.

4. New Jersey - hourly wage of $21.21 needed to afford a
two-bedroom rental home.

5. New York - hourly wage of $20.70 needed to afford a
two-bedroom rental home.

6. Connecticut - hourly wage of $20.42 needed to afford a
two-bedroom rental home.

7. Maryland - hourly wage of $20.07 needed to afford a
two-bedroom rental home.

8. Rhode Island - hourly wage of $19.36 needed to afford a
two-bedroom rental home.

9. New Hampshire - hourly wage of $18.10 needed to afford a
two-bedroom rental home.

10. Alaska - hourly wage of $17.90 needed to afford a
two-bedroom rental home.

The report concluded that a minimum-wage earner making $10,712 a
year cannot afford even a one-bedroom home anywhere in the
country. The reality is that a wage earner needs to make $28,475
per year to afford a two-bedroom rental home. Families with two
minimum-wage earners need to make at least $33,925 to afford a
two-bedroom rental home.