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FOX 56
How much does it cost to live in Kentucky in 2024?
By Madylin Goins,
19 days ago
KENTUCKY ( FOX 56 ) — According to the National Low Income Housing Coalition (NLIHC), the nation faces a shortage of affordable housing options for renters and buyers, with options that could be “out of reach” for low-income renters.
Each year, the NLIHC releases its Out of Reach, the High Cost of Housing report. The organization’s goal is to bridge the gap between income and housing costs through a variety of resources, including rental assistance, and to highlight the need for affordable housing in all 50 states.
“For more than 30 years, the National Low Income Housing Coalition’s (NLIHC) Out of Reach report has called attention to the disparity between wages and the cost of rental housing in the U.S.,” the NLIHC said. “Every year, the report shows that affordable rental homes are out of reach for millions of low-wage workers, families, and other renters.”
Kentucky’s 2024 data has been derived from the Office of Policy Development and Research , the U.S. Department of Labor, the Census of Employment and Wages, and the U.S. Social Security Administration. According to the NLIHC, outdated data reports have been adjusted based on a consumer price index-based inflation adjustment factor. For an in-depth look at NLIHC’s methodology, click here .
The most expensive areas to live in Kentucky
According to the Out of Reach report, it’s most expensive to live in the following areas based on the average housing wage to afford a two-bedroom rental:
How much should you make to afford a two-bedroom home in Kentucky?
Figure 1, two-bedroom rental housing wages by state (NLIHC)
The above map depicts the hourly wages a full-time worker must earn to afford the fair market rent for a two-bedroom home without paying more than 30% of their income.
According to the report, Kentucky full-time workers must earn at least $20.97 to afford the fair market rent of $1,090. Without spending 30% of their income on housing and utilities, the household must earn $3,634 monthly or $46,612 annually, assuming a 40-hour workweek, 52 weeks a year.
Kentucky’s minimum wage is listed as $7.25, on par with the federal minimum that has not been increased since 2009, per the report. At minimum wage, someone seeking housing must:
Work a minimum of 116 hours a week to afford a two-bedroom rental home
Work a minimum of 94 hours a week to afford a one-bedroom rental home
Have 2.9 full-time jobs at minimum wage to afford a two-bedroom rental home
Have 2.3 full-time jobs at minimum wage to afford a one-bedroom rental home
In a 2021 Kentucky Labor Force update by the Kentucky Center of Statistics, 55.5% of workers were paid hourly, estimating 17,000 were paid at or below the minimum wage.
14 of the 20 largest occupations in the nation earn less than the housing wage (NLIHC)
“These 14 occupations account for more than 64 million workers, or 42% of the workforce,” the report said.
In Kentucky, the lowest-earning popular occupation pays $4.33 less than the national average, according to the state report . With a total of 28% or 159,150 Kentuckians, earning below 30% of the area median income.
Even for a full-time worker earning the average renter wage across the nation, data shows that the wage still falls short of a one-bedroom’s fair market rent.
Affordable rent based on wage, compared to fair market rent (NLICH)
“Affordable housing remains out of reach for millions of renters in the U.S. despite a strong economy. Those with the lowest incomes endure the greatest challenges in the face of growing housing costs and a combination of insufficient wage growth and an inadequate housing safety net,” NLICH said. “In no state, metropolitan area, or county in the U.S. can a full-time worker earning the federal minimum wage, or the prevailing state or local minimum wage afford a modest two-bedroom rental home at fair market rent.”
In 2024, Kentucky cities have continued to make affordable housing strides.
“Well, we know that in that 10 years, while we’ve made a lot of progress and we’ve built and rehabbed over 3,000 units of housing, there is still a long way to go,” said Charlie Lanter, commissioner of housing advocacy and community development in Lexington.
For a more in-depth look at how Kentucky measures up, regarding housing costs, click here .
Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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