A recent study reveals that lower-income renters in the heart of the Capital Region would need to work beyond the standard 40-hour work week to bridge the gap between their hourly wage and the local fair market rent, particularly for a two-bedroom apartment.
Indeed, the data from the Capital District Regional Planning Commission, a planning and resource group based in Colonie, suggests that these renters would need to clock in as much as 58 hours a week to make ends meet in Schenectady County.
The commission has recently published an affordability study for Albany, Rensselaer, Saratoga, and Schenectady counties. This study was conducted in response to the increasing inquiries about housing in general, according to executive director Mark Castiglione. He believes that the findings will be beneficial for local policymakers.
This study is a reflection of an annual report published for over a decade by Hudson Valley Pattern for Progress, a similar research and planning group in Newburgh that serves nine counties to the south.
The study is timely, considering the current outmigration from the state, which is partly attributed to housing quality and affordability issues. Government leaders, including the governor, are seeking ways to promote the development of more workforce housing.
The study indicates that the 2023 fair market rent for a one-bedroom apartment in the Capital Region was $1,079, and $1,313 for a two-bedroom. The average hourly wage required to afford each is estimated at $20.75 and $25.25, respectively. However, not all renters earn this much.
The report estimates the hourly renter wage, calculated using various government data, at $17.42 in Schenectady County, $19 in Rensselaer County, $20.81 in Saratoga County, and $22.10 in Albany County.
From these figures, it’s clear that a renter would need to work more than 40 hours a week, or possibly hold more than one job, to afford a two-bedroom apartment. The report includes a chart listing the required weekly work hours to afford a two-bedroom apartment: 46 hours in Albany County, 49 in Saratoga County, 53 in Rensselaer County, and 58 in Schenectady County.
Even a one-bedroom apartment in Rensselaer and Schenectady counties requires more than a standard 40-hour work week.
According to the report, five-year estimates from the U.S. Census Bureau through 2022 show a 9% increase in the number of renters in the region compared to the previous five-year period.
“This increase highlights the growing need to understand the economic conditions and housing needs of renters in the region,” the report states.
Unlike the annual Pattern for Progress report, the local study does not heavily criticize wage and rent trends contributing to the “affordability crisis,” as the 2023 Pattern study termed it.
Castiglione, the head of the Capital Region commission, explained that this was intentional as his group is not an advocacy organization.
“We aim for the report to enlighten those who can take action to address the housing gaps in our region,” he shared via email. “The issue of housing affordability is persistent, and it will continue to be a priority for advocates and government officials for the foreseeable future.”
It’s important to consider the accessibility of housing for individuals in the Capital Region, especially as prices continue to rise. #disagree