Cost of living increases and housing

When I got my first job and moved into my own apartment, in 2006, I rented a “one bedroom with den” for $1000. It was about 1000 square feet.

At the time, I was making about $45,000 a year. By the 30% rule, my monthly max for housing costs should have been $1125, so I was doing okay there. (And it definitely helped that I had no student loan debt or car payment. I have a lot of class privilege.)

For grins, I went back and looked at that same apartment complex today. At first, I was impressed: the one-bedrooms are still being rented for $1000! But then I looked closer. The $1000 unit is 450 square feet. There is no “one bedroom with den” option.

Turns out, that’s now listed as the “two bedroom deluxe” unit, and it rents for $1750. (The “den” did have a window, so I don’t know why it wasn’t listed as a Bedroom in 2006. I don’t know what year the complex made this change.)

For comparison, someone at my same entry-level job today would be making $60,000. By the 30% rule, their maximum on rent should be $1500. So they probably shouldn’t live in the “deluxe 2 bedroom” apartment, but they’d still be okay in the 1-bedroom; and they’d be able to spend the “extra” $500 (girl math!) on, I don’t know, student loans or something.

I honestly think more places should be renting out efficiency apartments like that. It’s one part of a solution that’s going to have to be many-faceted (because one single solution can’t fix everything).

For reference, with the Maryland minimum wage of $15, the annual salary would be $31,200, so about half of what this Entry Level person today would be making. So to live in a 450 square foot one-bedroom efficiency, where I live, you’d need to have a roommate. Two people could swing it for the two-bedroom, if they were thrifty, but it would be tight. They could get a roommate for the second bedroom, which would make it a bit easier; 3 adults in 1000 square feet is not the most fun thing, but it’s workable.

In my ideal world, a single person earning minimum wage would be able to rent the aforementioned 450-foot efficiency apartment for 0.3 of their monthly gross wage, period. This should be our societal standard for “can someone afford to live on the baseline level, y/n?”

Anyway. Small soapbox over. Just ran those numbers today and thought it was interesting. (And if you’re local and you want to know the name of the complex, let me know. I’m not posting it here though because they’re not paying me and I didn’t love them THAT much.)