Is Rent Control the Answer?

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(Source: The Wallstreet Journal)

Is there a parallel between our homelessness situation and the lack of rent control in Portland? Is our housing cost the main barrier for someone to regain independence?

When you are looking for public assistance programs, you usually are at the end of your rope. Being an adult in our current society, earning $12 an hour minimum wage seems like a good thing in the Portland areas. But when it comes to a one-bedroom apartment, how does the amount stack up?  $24,960 a year for a full-time position. This is roughly 844.08 every other week with minimum tax deductions.  How does this earning stack up to an apartment in Portland?

An average One Bedroom apartment in Portland metro starts between &1100-$1500. This effectively massacres the budget of this individual on an annual basis. $18000 a year out of a $24960 budget is roughly about 73% of their earnings. This is in a standard minimum wage job, and completely unsustainable.

The threshold for support for an individual is earning a little under 30% of area median income begins at $17100. What that means is if someone is earning under this amount, they lack the eligibility to receive any type of payment help to obtain housing.  It becomes a parallel that depending on both where a person can find a home, and where they work. (Which will then dictate if they earn too much depending on the location of their new job. ) This does not factor into whether or not they can afford a place closer to their place of work. (For example a minimum wage job in Lake Oswego, where monthly apartment rent is higher than in downtown Portland.)

You have to have a job to be able to receive help to keep your home. If you have a job that earns under the minimum wage, there is potential you could be turned away from this support. With this in mind, how can a homeless person gain this support?

Halfway houses and homeless shelters can only support a person so far. When you are in a position where you need to find a home, being turned away from underprivileged support can lead to devastating results. If a homeless person manages to get a job, depending on education level they may only receive the earning of a $12 minimum wage. With that in mind, how does this houseless person gain a home from there if the yearly cost is 73% of their earnings? There is usually also a deposit that these individuals need to deal with to even obtain the right to move into a place. They may not be able to regain any type of independence even after all these steps.

Without legislation enforcing rent control, we are likely to only increase our houseless population. After the natural fires that keep increasing each year, we are now at a turning point where housing is in rapid increase demand. To keep the Portland population housed, we have already taken the first step by investing in mental health services with the passing of measure 110. This measure allows for treatment for addiction on the streets, funded by the taxpayers. However, once off the streets, and members of a halfway house, if a person is seeking permanent housing, they run into this dichotomy. Once they graduate to gaining a job, why is it that they cannot find a home?

Overall, we need to take a strong look into our housing situation in Oregon. To improve the homeless situation, we must get our rental prices under control. If the bare minimum yearly earning of an adult loses out over 73% of their paycheck to afford housing, it is unsustainable with the cost of living. Without affordable housing, a homeless person cannot dream of returning to society. In my opinion, we as citizens need to invest in a government that will reject this dichotomy and force legislation that forbids rent that charges more than %30 of the total earnings of a minimum wage worker. This is the first step in a long list of needs to provide everyone with the home they deserve.

Author: Cal Scott

For more information on recent Rent Control Measures click HERE

 

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