I made a discovery a few days ago. My husband has been hiding something.
In our garage are boxes of brown sugar Pop-Tarts and strawberry and banana mini muffins. He says they’re for the kids – that he’s just rationing them. In the meantime, until he chooses, those breakfast items are completely unattainable. The 2- and 7-year-old don’t have the resources or transportation to secure the desirable items at the store themselves, and even the boxes under their very own roof are out of reach. They simply don’t have what they need to make those items their own without some help. At the very least, they need a ladder. As it stands, my husband and I are the “haves” and our kids are the “have-nots.” And until something changes, they’re destined to continue settling for the second-rate blueberry muffins that are widely available and accessible to them in the kitchen.
A similar saga plays out – but with significantly more severe repercussions – for thousands of low-income Hoosier renters who, no matter how hard they work, cannot secure quality housing that is affordable and available to them. Especially for extremely low-income households, affordable housing is – simply put – out of reach.
A new report, co-released by Prosperity Indiana and the National Low Income Housing Coalition, details the depth of the issue in the Hoosier state. According to Out of Reach 2022, to afford a modest, two-bedroom apartment at fair market rent in Indiana, full-time workers need to earn on average $16.97 per hour, up from $16.57 a year ago. This rate is Indiana’s 2022 Housing Wage.
Yet, despite the fact that housing costs continue to rise, Hoosier renter wages continue to lag far behind our Midwest peers – further broadening the affordability gap. The average Indiana renter wage of $16.61 is now $1.05 an hour lower than the average across Midwest states. This gap adds up to $2,184 a year, nearly enough to pay 2.5 months of rent for a two-bedroom apartment at fair market rates. And for the lowest-income Hoosiers, the reality is even bleaker.
Especially with the record-high inflation and soaring rental costs we’re seeing, taking on more housing than is affordable increases housing instability, forcing families to choose between housing quality, child care, medical care and even food. That means these families are also more susceptible to financial shocks that arise.
Several solutions would address this issue. One is obvious – wages that rise faster than housing costs. The other options are multi-fold. The development of more affordable units to meet the demand of the lowest-income residents and an increase in rental subsidies available to meet the needs of those who qualify are critical new measures to employ. Additionally, in Indiana, we need to ensure the subsidized affordable housing stock we currently have remains affordable, and that the units people are living in meet habitability standards. Affordable housing preservation requires the state to change how it reinvests in affordable housing. This is an active conversation at the state agency level. The habitability piece, however, necessitates improved enforcement options established through legislation, since in 2021 the state preempted local governments from establishing tenant protections.
All of these options require acknowledgement of reality. They require more money. They require increased accountability. And whether or not it should, pressing for these options may require bravery to shift the status quo. Being considered at the federal level now is the Eviction Crisis Act. Sen. Todd Young is a co-sponsor, but Sen. Mike Braun needs to hear from constituents with urgency to support this moving bill.
To make an impact, we need to create more housing options and more ladders to economic opportunity and make them available to those who need them.
Jessica Love is executive director for Prosperity Indiana, a statewide membership organization for individuals and organizations strengthening Hoosier communities. This commentary previously appeared at indianacapitalchronicle.com. Send comments to [email protected].
