Asheville and Buncombe County living wage increases 9% amid soaring housing costs

ASHEVILLE - How much must one person make to live in Buncombe County in 2024 and comfortably rent a one-bedroom? It is now $22.10 an hour, or about $45,968 a year before tax.

The new living wage rate was announced Jan. 9 by Just Economics of Western North Carolina, with the living wage getting a $2 bump — around a 9% increase. The rate is nearly $15 above the federally-mandated minimum wage of $7.25 an hour. The federal minimum wage has not been increased in more than 20 years.

The rate represents the wage floor that would allow a single person working full-time to qualify for a one-bedroom apartment in Buncombe County. Just Economics uses a four-year rolling average of Fair Market Rent as determined by the U.S. Department of Housing and Urban Development.

The increase reflects the "significant increase in the cost of housing in our community," according to the news release. In 2023, home prices in Buncombe County reached record median prices, with the third quarter setting an all-time median sales price record of $475,000.

The Fair Market Rent for a one-bedroom apartment in the Asheville area has increased from $799 in 2019 to $1,496 in 2024, an increase of 87%, according to HUD data.

As of June 5, 2023, the Asheville area median income for one person is $59,500, according to the city of Asheville AMI Index. The $22.10 an hour rate is around $1,500 below 80% of the Asheville AMI, which is $47,600.

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This year, Just Economics will also provide a new level of certification — Living Wage Pledged employers. Certified employers will pay a minimum wage of $19 an hour and are committed to increasing their pay rate annually by 3% plus the annual rate of inflation, according to the news release. The $19 an hour rate was calculated by Living Wage For US, a national-scale program using an internationally recognized methodology.

The new certification acts as another option compared to the higher tier "Leading Living Wage Employers" certification, which requires employers to pay at least $22.10 an hour. Just Economics attributed the increase to the dramatic increase in housing cost.

“We understand that rising labor costs put a strain on local employers, and we also know that the rising cost of housing makes it increasingly challenging for workers to secure an affordable place to live in the region,” Just Economics Executive Director Vicki Meath said in the news release.

“We believe that a living wage must be rooted in a worker’s ability to live in the region. While we are working to raise the wage floor and support businesses who are at least working toward a living wage, at the same time we are working to address the issue of affordable housing. Affordability is a major concern in Buncombe County, and it will take a community-wide effort to effectively address it.”

Just Economics also certifies employers outside of Buncombe County, where employers in Western North Carolina can expect a separate wage rate for rural counties — $16.40 an hour.

Employers previously certified by Just Economics do not need to take immediate action to remain certified. The recertification process with previously certified employers will begin in March, according to the news release.

The Just Economics Living Wage Certification Program began in 2008. The model used for certification was based on the Tompkins County Workers Center in Ithaca, New York. Over the last 15 years, the program has grown to include over 400 WNC employers, and is the largest such program in the nation.

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Will Hofmann is the Growth and Development Reporter for the Asheville Citizen Times, part of the USA Today Network. Got a tip? Email him at [email protected]. Please help support this type of journalism with a subscription to the Citizen Times.

This article originally appeared on Asheville Citizen Times: Asheville Buncombe living wage at $22.10 to rent 1 bedroom apt.