Increasing rents in Licking County force lower-income residents onto streets
NEWARK − A dramatic increase in rent makes it difficult for lower-income Licking County residents to find an affordable place to live or even stay in their current home.
And with the Intel Corporation computer chip development driving up housing prices, the cost of all housing in the county is expected to continue increasing. But, so in theory will wages.
Intel begins construction this year on the largest commercial development in Ohio history, a $20 billion computer chip manufacturing operation which could grow to a $100 billion investment, just south of Johnstown. The company expects production to start in 2025 and employment to reach 3,000, with an average wage of $135,000.
The gap between rents and the wages of renters is greater in Licking County than all but three of Ohio's 88 counties.
Fair-market rent in Licking County is $1,032 a month, forcing workers to make at least $19.85 an hour to afford rent for a two-bedroom apartment, according to an annual report released by the Coalition on Homelessness and Housing in Ohio and the National Low-Income Housing Coalition.
“The rents, in general, have gone up dramatically over what they were even two years ago,” Licking County Coalition for Housing Director Deb Tegtmeyer said. “Some of these numbers might even be behind a little.
“We’re also seeing an undercurrent of properties being sold. Several in the (rental) business are getting out and the new owner is not renewing leases for those currently living there. The new owner then increases the rent.”
Licking County home sale prices have also increased dramatically, reaching $359,293 in June and $336,803 in the second quarter of the year. The average home sale price in 2021 was $279,985, and in 2020 it was $248,442.
The estimated hourly mean renter wage in Licking County is $12.96 per hour, or $6.89 an hour shy of what is needed to afford a two-bedroom apartment. That $6.89 an hour gap is larger than 84 of the other 87 Ohio counties. Only Fairfield ($8.93/hr), Morrow ($8.46/hr) and Brown (7.06/hr) have a bigger gap.
Eric Lee, of the Newark Think Tank on Poverty and Licking County Alcoholism Prevention Program, said rents that had been $850 a month are now $1,200.
“I’m hearing it every day," Lee said of people unable to find a place. "The lists are so long it's almost impossible to find a one- or two-bedroom. Everybody is looking for housing and there's nothing to be had for low-income people. There’s a stigma to rent to low-income people.”
Lee said some landlords require two months rent in advance and a deposit, or three months rent.
"Who has that kind of money up front?" Lee said. "These people we deal with don’t have it. It’s a never-ending cycle of homelessness and depression. What do you do when you and your family are out. We see these people and there’s just a sense of disparity. It’s palpable. A lot of people are homeless through no fault of their own.”
One guy with a family moved here for a job, but has no place to live, and may end up staying in his car, Lee said.
“They just moved here from the Springfield area,” Lee said. “He just got a job, but they couldn’t afford to keep living in the hotel. It depleted their resources. They were packing their car up. It’s another one of those heart-breaking situations. You feel hopeless.”
The average two-bedroom rent in Ohio increased 12.3% over the past year, and 23% in two years, according to the report. The fair-market rent in Ohio is $887 a month for a two-bedroom apartment, which is out of reach for full-time workers who earn less than $17.05 an hour.
Tegtmeyer said some residents have a month-to-month lease instead of a year-long lease. In those cases, the landlord could increase rent for the next month and tenants could find themselves without a home in 30 days.
“Thirty days is not much to come up with a lot of money,” Tegtmeyer said. “Some are finding social security and pension is not enough. We’re getting a lot of phone calls. We’re not able to create housing any faster.”
A monthly rent of 30% to 35% of monthly income is considered affordable, or 40% if utilities are included, Tegtmeyer said.
“But lots are paying more than that,” she said.
The average renter in Licking County earns $12.96 per hour, or about $2,246 per month. If they pay the average of $1,032 a month in rent, that’s 46% of their salary.
Of the 10 occupations with the most employees in Ohio, only two earn enough to comfortably afford a two-bedroom apartment, according to the report. The housing wage is even higher in Ohio’s urban areas, but the gap between rents and wages is wider in many rural and suburban communities.
Marcus Roth, communications and development director for the Coalition on Homelessness and Housing in Ohio, told the Columbus Dispatch that probably reflects the rapid population growth in Union County, which increased 20% between 2010 and 2020, according to U.S. Census Bureau data.
“When a rural county near a growing urban center experiences rapid suburban growth, we often see the cost of rent spike,” Roth said.
Deb Dingus, executive director of the United Way of Licking County, said the current market of high demand and low supply benefits landlords.
“Lack of housing is a concern and in a growing area, that tight housing market gives landlords the opportunity to raise these rents,” Dingus said. “For those people on a fixed income, they are outpriced. There just isn’t a lot of affordable housing.”
Dingus said the housing crunch affects single people, families, young people, senior citizens, employed and unemployed alike, all without a permanent, stable housing situation.
“The lack of housing they can afford, and inflation, is leaving some people on the brink of being homeless," Dingus said. "It doesn’t mean unsheltered. Young adults are moving back in with parents.
“I'm seeing seniors consider co-house sharing. We see people working full-time and living in their cars.”
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Rents versus wages
Following are the rent and salary statistics for Licking County, neighboring counties and the state of Ohio. The first column shows the fair market rent for a two-bedroom apartment in fiscal year 2022. The second and third columns show the hourly wage and annual income needed to afford the two-bedroom apartment. The fourth column shows the percentage of households that rented in 2016-20. The fifth column shows the estimated hourly mean renter wage. The last column shows the gap between the wage needed to rent the two-bedroom apartment and the estimated hourly mean renter wage.
Community: Rent for 2BR FMR; Hourly wage needed; Annual salary needed; Rental %; Avg. renter wage; Wage gap
Fairfield County: $1,032; $19.85/hr; $41,280/yr; 25%; $10.92/hr; -$8.93/hr
Licking County: $1,032; $19.85/hr; $41,280/yr; 27%; $12.96/hr; -$6.89/hr
Perry County: $738; $14.19/hr; $29,520/yr; 24%; $11.57/hr; -$2.62/hr
Coshocton County: $738; $14.19/hr; $29,520/yr; 26%; $12.72/hr; -$1.47/hr
Muskingum County: $752; $14.46/hr; $30,080; 30%; $13.17/hr; -$1.29/hr
Knox County: $746; $14.35/hr; $29,840/yr; 28%; $14.17/hr; -$0.18/hr
Non-metro areas: $762; $14.66/hr; $30,498/yr; 28%; $14.48/hr; -$0.18/hr
State of Ohio: $887; $17.05/hr; $35,468/yr; 34%; $17.33/hr; +$0.28/hr
Franklin County: $1,032; $19.85/hr; $41,280/yr; 46%; $22.03/hr; +$2.18/hr
Source: Coalition on Homelessness and Housing in Ohio and the National Low-Income Housing Coalition
This article originally appeared on Newark Advocate: Increasing rents force lower-income residents onto the streets
