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A report by the commercial real estate firm Transwestern found that suburban apartment rentals are driving the metropolitan markets. (The Daily Record/Maximilian Franz)
A report by the commercial real estate firm Transwestern found that suburban apartment rentals are driving the metropolitan markets. (The Daily Record/Maximilian Franz)

Maryland among most expensive states for renters

It’s not cheap to rent an apartment in Maryland.

According to a new report by the National Low Income Housing Association, Maryland ranks seventh in the nation in terms of the hourly wage required to rent a two-bedroom apartment.

The organization’s data finds that an employee would have to make $24.64 an hour to afford an apartment. To put that in perspective, a family with two breadwinners making the minimum wage of $8.25 an hour in Maryland can’t afford the average cost of renting a two-bedroom unit in the state.

The association didn’t provide specific numbers, but extrapolating from the wage figure: Based on spending no more than 30 percent of household income on rent, the couple would need $51,251 a year to afford a $1,281 a month apartment.

Obviously, there are submarkets where renting an apartment would require a much lower hourly wage. But the figure does give an idea of just how high rents have climbed in recent years.

Every year since 1989 Out of Reach has shown the gap between wages and rents across the country and the gap continues to grow as the cost of housing increases more quickly than earnings. A renter earning the federal minimum wage of $7.25 per hour would need to work 85 hours per week to afford a one-bedroom rent at the Fair Market Rent and 102 hours per week to afford a two-bedroom Fair Market Rent. — National Low Income Housing Association.

About Adam Bednar

Adam Bednar covers real estate and development for The Daily Record.

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