Millennials are labeled as the lazy generation who seem not to want to move out of their parents’ home. However, millennials continue to live with their parent’s due to expensive housing. This younger generation must work two positions for them to buy their first home. Sometimes two jobs are not enough because purchasing a home about takes a significant percentage out of their income and not only does an income depend on the hours a person works, but also on the hourly rate they receive.
As a millennial myself, I have experienced that renting an apartment is also as expensive as buying a small two to three-bedroom house. Therefore, I would say investing in a home would be a more significant decision eventually. However, it is difficult to find an affordable house that will not take a full percentage of my monthly income. Housing and apartment prices are rising as they are extravagantly built. For us, millennials, to keep up with economic costs the US Department of Labor needs to focus on increasing minimum wage to assist this generation who cannot afford to house.
If the US Department of Labor increases the minimum wage, then millennials will be able to afford their own home, and this will eventually contribute to the economy. As of right now, millennials are holding back from purchasing a home due to their income and house prices that are set high. Michele Dickerson, a professor of Law in the University of Texas, has provided a result of Macarthur’s survey disclosing most Americans have to find multiple ways to increase their income or make sacrifices to pay their monthly housing expenses. Some even paused their savings for retirement. Also, in between all that, to meet their payments, they are borrowing from their credit cards (par 13-15). Millennials are one of the vulnerable groups in the US. Even though we seem to struggle, we believe homeownership is the best investment, but it has become difficult to find affordable housing to purchase with our current income. I understand some people will argue back commanding we get a better career to afford our needs and wants; however, adults with bachelors and masters appear also to be struggling the same as any millennial just graduating college.
The current federal minimum wage, $7.25, is not enough during our economic growth. The article, “Average Hours at Minimum Wage Required to afford a One-Bedroom Rental Unit in the US,” gives statistical numbers of the hours all states must work per week in order afford a single bedroom apartment. The least hours being, fifty-two in Arkansas and the most, 124, in Hawaii. That is per week! Reasonably, these states exceed federal minimum wage, but even then, Americans seem to be paying an enormous amount from their income. This statistic shows that a “national hourly wage required to afford a one-bedroom apartment without paying more than 30% of income, 2016″ should be $16.35 (Gale Cengage Learning).
Although the government and some citizens may not agree with higher wages, they should realize that this proposal will have fewer people will be on welfare and citizens will continue to afford their homes and less will become homeless. By millennials receiving a higher income, adds more benefit of improving the country’s budget and debt. In an article in the Gale Opposing Viewpoints, “Preface to “what housing policies will benefit the homeless” the author states “the primary cause of homelessness among families is the growing gap between housing costs and income” (Gale para 2). If the US Department of Labor does not see raising the minimum wage as a solution to helping millennials afford their homes, then maybe they should consider looking at the problems the high housing prices are causing. Not only are millennials not able to provide a home, some even lose what they have or can’t continue to pay what they owe and become homeless.
“Affordable Housing.” Opposing Viewpoints Online Collection, Gale, 2016. Opposing Viewpoints in Context, https://link.galegroup.com/apps/doc/ZDOVVM956735540/OVIC?u=ranc95197&sid=OVIC&xid=635da0a1.
- The “Affordable Housing” Document describes the history of programs the government provides to homeowners. However, it also includes statistics of rental cost growth and how American’s are spending over 30 percent of their income in order to keep up with their household bill. This document will also back up my proposal of raising minimum wage against any possible opponents who think otherwise. This is a current source coming from the Opposing Viewpoints reliable website published by the educational Cengage Company.
“Average Hours at Minimum Wage Required to Afford a One-Bedroom Rental Unit in the US.” Gale Opposing Viewpoints in Context, Gale, 2016. Opposing Viewpoints in Context, https://link.galegroup.com/apps/doc/XSCNFI229268621/OVIC?u=ranc95197&sid=OVIC&xid=3b07e7c7.
- This statistical article provides the hours one would have to work in all 50 states in order to afford a “One-Bedroom Rental Unit.” Although the information is based on the year 2016, it has reliable information that will explain the minimum wage and hours that each state needs to provide to their employees. I will be using this as part of my proposal, proving why we should raise minimum wage. This source is credible as I found it through a Chaffey College database.
Dickerson, Mechele. “Millennials’ Struggles to Buy Real Estate Could Cause a Housing Crisis.” Opposing Viewpoints Online Collection, Gale, 2018. Opposing Viewpoints in Context, https://link.galegroup.com/apps/doc/TXXAUR676446572/OVIC?u=ranc95197&sid=OVIC&xid=52b8b679. Accessed 10 Sept. 2018. Originally published as “Another housing crisis looms as millennials struggle to find homes they can afford,” The Conversation, 16 June 2015.
- The author of this article explains how homeownerships rates have been decreasing since 2005 due to its expensiveness. She also proves millennials have to work extra shifts or jobs in order to afford a house. This is the strongest article that will agree with the issue of millennials not buying homes. This was also taken out from Gale Opposing viewpoints on Chaffey College library. The author is an American lawyer, and a Teaching Professor at University of Texas School of Law.
“Preface to ‘What Housing Policies Will Benefit the Homeless?’.” The Homeless, edited by Louise Gerdes, Greenhaven Press, 2007. Opposing Viewpoints. Opposing Viewpoints in Context, https://link.galegroup.com/apps/doc/EJ3010235162/OVIC?u=ranc95197&sid=OVIC&xid=cb8715d6.
- This article gives a brief background of shelters who provide for homeless people. It includes advocates and activist who are brainstorming policies to help poverty and to educate the homeless to end homelessness. I will be using this article as a backup against counter-arguments or prove for the solutions raising minimum wage will bring to prevent homelessness. Reliable source is from Gale Opposing viewpoints on Chaffey College library.