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Twin Cities housing market: Investors buying up fewer homes
The housing market in the Twin Cities has started to cool. Investors bought about 12% of Twin Cities homes on the market in early 2022, but now they're buying fewer homes.
MINNEAPOLIS (FOX 9) - A new report reveals the disparity between minimum wage and the cost of an average two-bedroom rental in different U.S. cities.
According to Out of Reach, in no state, metropolitan area, or county can a full-time minimum-wage worker afford a modest two-bedroom rental home, and these workers cannot afford modest one-bedroom apartments in 91% of U.S. counties.
The Out of Reach report from the National Low Income Housing Coalition revealed Minnesotans are in the top 25 among those who have it the worst.
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According to the report, the average Minnesotan needs to earn an hourly wage of $22.41 and work full-time to afford a two-bedroom apartment. In Minnesota, the Fair Market Rent for a two-bedroom apartment is $1,165. And in order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $3,885 monthly or $46,616 annually.
In most of the Twin Cities metro, workers would need an hourly wage of $25.56, the data show. In the Rochester area, workers would need to make below the state average, at $21.04.
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Impact of interest rates increase on housing market in Minnesota
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However, elsewhere in Minnesota isn't as expensive. In the Mankato area, renters would need to earn a minimum wage of $19.08 to afford a two-bedroom apartment. In Rice County and Le Sueur County, the so-called "housing wage" is $18.96 and $18.54, respectively. In the Duluth area, it's $18 and in Fargo-Moorhead, it's $16.52.
RELATED: This is how much you need to make per hour to afford housing in your state, study finds
Minnesota's minimum wage is currently $10.33 an hour for large employers and $8.42 an hour for other state minimum wages. That being said, the minimum wage for large employers in Minneapolis is $15 an hour.
To view the full report on rental costs and minimum wage, click here.
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St. Paul tenants seek appeal as low-income landlord granted rent cap exemptions
Tenants of a low-income apartment building thought their days of massive rent increases were over thanks to a new rent cap rule in St. Paul. But not long after the law went into effect this spring, they discovered their landlord had received an exemption.