If it feels like you need two jobs just to make rent these days, you’re not far off. With the median rent nationwide landing at $1,702, you’d need to make $5,673 per month, or $68,080 per year, to afford it, according to RentCafe, a national rental listing service. With the average annual income of full-time workers landing at $59,540, according to the U.S. Bureau of Labor Statistics, it’s no wonder that renting Americans are feeling the squeeze.
As if that’s not bad enough, there are four states in which you need to pull in six figures to afford the median rent. We took a look at the details of those. And because we knew you’d ask, we also inspected the three states where rents are most affordable. You might be surprised at what we found.
4. Hawaii
Paradise isn’t cheap. In fact, the Aloha State consistently ranks as the state with the highest cost of living in the country. A big part of that is likely the high rent prices, with a median statewide rent of $2,512. To afford that comfortably, you’ll need to pull down $8,373 per month, or $100,480 per year. The Bureau of Labor Statistics doesn’t list surf instructor, but we’re guessing that’s not going to cut it. Especially since the average annual income for all occupations in Hawaii comes in at only $65,030. On the plus side: no heating or winter clothes bills.
3. California
Sunshine, mountains, oceans… what’s not to like about California? It has everything for a healthy, happy life. But it will cost you. With a median rent across the state of $2,531, you’ll need to pull in a cool $101,240, or almost $8,500 per month to comfortably live in the appropriately named Golden State. Adding to the buzz kill is the fact that the average annual wage across all occupations in California is $76,960.
2. New York
They say that if you can make it here, you can make it anywhere. And with a median rent price of $2,639, believe it. You’ll need an annual income of at least $105,560. That’s nearly $8,800 per month. Unfortunately, the average annual wage of New Yorkers is $78,620. And remember, that rent stat is for the entire state. Get anywhere the action and prepare for even worse sticker shock. Consider that rent in Manhattan for an average apartment size of 703 square feet (basically, a glorified shoebox), you’ll pay an average of $4,768.
1. Massachusetts
Edging out the odds-on favorites of New York and California for the highest median rent in the nation is tiny, populous Massachusetts. The historic New England state sounds off with a median rent of $2,714 per month. This means that to comfortably afford a place in The Bay State, you’ll need to earn at least $9,000 per month, or, to be exact, $108,560 per year. But with the average annual wage in Massachusetts landing far short of that at $80,330, you might need to find a roommate.
3 States With the Most Affordable Rents
North Dakota
North Dakota might be home to the notorious Badlands, but its rents seem to be pretty good, with the median rent coming in at $1,046. This means that with a monthly income of $3,487, or $41,840 per year, you might be comfortably housed in this northern state. North Dakotans certainly have a decent shot at it, with the annual wage for all occupations in the state averaging $59,050.
Arkansas
The runner up for the nation’s least expensive rent is Arkansas, with a median rent of just $1,036. This means with an annual income of $41,440, or $3,453 per month, you’re riding high in this state known for mountains, rivers and hot springs. With the state’s average annual wage resting at $51,250, it might be a good fit for a lot of folks.
Oklahoma
Coming in with the least expensive median rent in the nation is Arkansas’s neighbor Oklahoma. The only state with a median rent under $1,000 per month, at $989 per month, Oklahoma residents must make an annual income of $39,560, or $3,297 per month, to comfortably afford the median rent. And, with an average wage of $53,540 per year in the state, things are looking a little brighter in the Sooner State.
Methodology: GOBankingRates calculated the salary needed to afford rent in every state by using the budget rule of thumb that says to keep housing costs at 30 percent or less of your income. GOBankingRates found the median rent in each state, sourced from RentCafe, and worked backward to find the monthly income needed to have monthly and yearly rent consume 30 percent or less of income. All data was collected and is up to date as of February 15, 2024.
This article originally appeared on GOBankingRates.com: Housing Costs 2024: You Need To Make Six Figures To Afford Rent in These 4 States
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