After reading the New Jersey ranks as fourth most expensive state in which to live article today on LehighValleyLive.com, remind me again why we live in New Jersey?
Is it the close proximity to New York or because we were born and raised as Jerseyans? I'm sure it's not because New Jersey is ranked as the 4th most expensive states in the country to live in terms of housing wage according to a new national report, Out of Reach 2011!
According to the report issued by the National Low Income Housing Coalition and the Housing and Community Development Network of New Jersey, the housing wage is defined as:
the hourly wage a family must earn - working 40 hours a week, 52 weeks a year - to be able to afford rent and utilities in a safe and modest home in the private housing market.
The fair market for a two bedroom rental in New Jersey, is $1,276. Therefore, a family must earn $51,044 to afford a fair market two bedroom rental. A minimum wage employee would have to work 3.4 full times jobs a week, or 135 hours to afford a modest 2 bedroom apartment rental in New Jersey. The report also states that a typical New Jersey renter earns $15.82 per hour, $8.72 LESS than the hourly wage of $24.54 a renter would need to afford a modest rental. It's estimated that 61% of renters in New Jersey, do NOT earn enough money to afford a fair market two bedroom rental in New Jersey.
So, if the average two bedroom rental in New Jersey is $1,276 and a family must earn $51,044 to afford it, many homeowners I know have a mortgage payment that exceeds or is very close to $2500 a month (double the average rental price) so therefore to own a home in New Jersey, a family must earn over $100,000 a year? Just saying......so please remind me again, why we live in New Jersey?
According to Terry Newhard, Executive Director of Northwest New Jersey Community Action Program, Inc. (NORWESCAP)....
"One in four jobs in America do not pay enough to get people above the poverty rate. Everybody needs to live somewhere, and I think if we make the cost of housing too high we push people farther and farther away." "If you want to have a real community and have people live where they work, they got to have affordable housing." ..."Fair market rent is even higher in Hunterdon and Somerset Counties"
According to the Out of Reach 2011 report, Bergen and Passaic Counties are the most expensive counties in New Jersey. In Cumberland and Essex Counties, 71% and 66% of residents are unable to afford fair market rent.
There is much truth to the statement made by the Executive Director for Housing and Community Development Network of New Jersey's, "this data only emphasizes the need for more affordable home choices in our state [New Jersey]".
So, please remind me again why we live in New Jersey? Oh that's right I remember - because Bruce Springsteen is in love with a JERSEY GIRL....
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