Posts Tagged ‘entry-level’

Most Affordable States for Job Seekers

Friday, May 27th, 2016

Graduation season is upon us! This means thousands of college graduates ready to enter the workforce with high hopes and unrealistic expectations. Although job creation is on the rise and many glamorous locations are beckoning college graduates to come and find work, often times these locations’ housing costs are way beyond the scope of what entry-level wages can afford. What a perfect time for Forbes Magazine to release its study on the most affordable states and rental rates for new job seekers. John Wasik, a Forbes Contributor, sums up which locations should be most attractive for entry-level workers:

“It’s tough to be a recent college graduate. You’re scrapping to find the highest-paying job and may be carrying loan debt. You must feel like you’re running uphill with a backpack of rocks.

If you’re looking to relocate, what’s the first economic decision you need to make? You need to know what prevailing rents are in the city you wish to relocate to relative to your income.

Let’s get the spoiler out of the way first: The largest, most glamorous cities are unaffordable unless you’re making way more than $20 an hour. You won’t be able to afford these places at all if your wages are around minimum wage.

According to a recent report by the National Low Income Housing Coalition, for most workers, that probably puts Hawaii, California, New York, Maryland and New Jersey out of reach for millions. Here’s what the report found:

“In order to afford a modest two-bedroom apartment at fair market rent, a full-time worker in America today must earn $20.30 per hour—a figure that is almost $5 more than the average hourly wage of renters in the U.S. A full-time worker needs to earn $16.35 per hour to afford a modest one-bedroom apartment.”

 One simple rule of thumb is that average rents (or overall housing costs) shouldn’t exceed more than 30% of your income. In glamor cities like San Francisco, Los Angeles, Seattle and New York, you’ll get soaked for housing costs, which could easily exceed half of your income.

That puts a huge burden on you. Remember that you need to pay for food, transportation and other necessities. You won’t be able to save money.”

To view this article in its entirety, visit http://www.forbes.com/sites/johnwasik/2016/05/27/most-affordable-rents-states-for-job-seekers/#306c5d293d90