How Rent Prices Are Squeezing Louisiana Residents Today
Remember back in 2010 when Jimmy McMilan went viral with his "Rent Is Too Damn High Party"? He was a candidate in the New York gubernatorial race, and had multiple viral moments during the debates. He went so viral that Saturday Night Live created skits about him.
Is The Rent Really Too Damn High?
Part of the intrigue about McMilan and his party was the unique look that McMilan sported on stage, but it caught on with many because the idea of the "rent being too high" also struck a chord with many. Not just in New York, but around the nation.
The distance between rent growth and income growth have been separating for decades. Which impacts Americans from Shreveport to Syracuse, and from Miami to Portland.
Rent In Louisiana Keeps Climbing, While Wages Stay Down
Louisiana isn't immune to this housing crisis. Rents around the state have grown with the same rage as around the country. While at the same time, Louisiana's minimum wage is the lowest in the nation. Which is a multi-state tie among states who would pay residents less if they legally could. While states like Colorado, Florida, Missouri, Montana, Nebraska, and South Dakota have all moved over $10 an hour, and are working their way towards $15 an hour for their minimum wage.
States With a Higher Minimum Wage Have Lower Rent Costs
In these states with minimum wages higher than Louisiana, their rental rates remain in the same range, if not lower than Louisiana. The average price of a 2-bedroom rental in Louisiana is $1,233 a month, with a $7.25 minimum wage. In Missouri, the average price of a 2-bedroom rental is $979 and a $13.75 minimum wage. The average 2-bedroom rental in Nebraska is $1,048, with a minimum wage of $13.50 an hour.
How Many Hours Do You Have To Work At Minimum Wage To Afford Rent?
So, in Louisiana you have to work 170 hours at minimum wage, before taxes, to make the average 2-bedroom rent. In Missouri, you have to work 72 hours, before taxes, to afford the average 2-bedroom rent. In Nebraska, you need 78 hours, before taxes, to afford the average 2-bedroom rent.
Like the basic math concept of a higher minimum wage plays out in this exercise, where residents in these two other states have to work 100 hours less than residents in Louisiana.
Louisiana Residents Are Overextended On Their Monthly Rent
For more Louisiana rental math, lets look at the metro areas in the state where renters are the most overextended...
Look: These Are the Metros Where Renters Are the Most Overextended in Louisiana
Gallery Credit: Stacker