Minimum wage in Ohio would need huge increase to even afford rent
National study says it would take a 57-hour work week to afford housing at current rate
CLEVELAND, OH (WOIO) -On Tuesday the Cleveland Clinic announced it will raise its minimum wage for employees to $15 an hour by 2020.
In an editorial the Clinic’s CEO and President Tom Mihaljevic, M.D. said, “Increasing our minimum wage demonstrates our commitment to our employees and their families, as well as the community and our patients. It is a reflection of who we want to be as an organization."
This move is quite generous considering the state mandated minimum wage in Ohio currently is $8.30 an hour.
That being said, a 2018 study by the National Low Income Housing Coalition (NLIHC) said a $15 an hour job is barely enough to afford housing in the state of Ohio.
Just to rent a modest one bedroom home in Ohio, a person needs to make $11.91 an hour.
To afford a two bedroom that pay needs to increase to $15.25 an hour.
The NLIHC bases those numbers on a calculation where the cost of rent and utilities does not exceed 30 percent of household income.
Ohio is better than the majority of states in the country and places 44th at what a person would need to make to afford rent.
Hawaii is the worst state, where a person needs to make $36.16 an hour to afford rent.
At the current minimum wage of $8.30 the NLIHC study said a person would have to work 57 hours a week to afford a one bedroom rental home at fair market value in Ohio, which is $610 a month.
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