BUFFALO, N.Y. (WKBW) — Did you know Buffalo is considered the cheapest city for renters who earn minimum wage? According to this study, we are.
With everything feeling more expensive, how is this possible? I talked to two experts who say the answer is more complicated than the headline may seem.
The numbers
"It's pretty unique what you guys got going on in Buffalo," said Nick Pisano, the author of the Clever Real Estate study.
The study focuses on the rent-to-income ratio. So it stacks cities based on how affordable housing is for minimum-wage workers.
According to the study, with our minimum wage at $15 and the typical fair market rent for a one-bedroom at $1,001, people would need to dedicate 39% of their income toward rent.
A general rule of thumb among financial experts is that no more than 30% of a person’s gross income should be spent on housing.
So renting in Buffalo is not considered affordable, but we have it better than other cities.
Pisano's report shows in Atlanta, they’d need 132% of their pay to rent a one-bedroom unit.
"I think [rent is] obviously just way too high, it's really catching up to people and it's really starting to have a major impact on their bottom line," said Pisano.
If you factor in larger units, he says Buffalo is one of two cities where a couple could affordably rent a two-bedroom unit and it's the only city in America where a couple could rent a three-bedroom unit.
The local expert
"Being low income in Buffalo has more implications than just can I pay the rent," said Athenia Cyrus, Co-Chair of the Affordable Housing Task Force.
I took these numbers to Athenia Cyrus, she represents the citizens' voice for the task force.
"There are eyes on Buffalo," said Cyrus. "It was really astonishing to see us at number one on the list, if we're one of the oldest housing stocks in America, is that why the rent is low?"
She lives on Buffalo's East Side and says there are several other variables to consider here, including:
- Taxes
- Assessments
- Children
- Childcare
- Seniors
And one of her biggest points was the quality of the housing. While it's cheaper, she questions, is it livable?
"Understanding what's going on in the community, not so many people are that lucky," said Cyrus.
The solution
How could we make Buffalo affordable? Pisano crunched some more numbers for me.
"They'd have to raise the minimum wage to $19.25 an hour if rent prices stayed the same. Or they'd have to lower the rent prices for one bedroom to $780 dollars/month," said Pisano. "Both are gonna be a challenge."
And the task force is pushing for change, by asking the Common Council to define what exactly is "affordable" and suggesting what to do with the city's vacant lots.
Click here to watch Cyrus bring up some of these issues and explain their plans at a Common Council meeting from October 22.