According to a recent report from Realtor.com, the median asking rent in the 50 largest metros for November 2024 was $1,703, $17 lower than the previous month and $57 lower than the peak in August 2022. However, as the cost of living has increased and the minimum wage is not keeping pace with inflation, low-income earners are forced to work longer hours to afford a place to live.
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The report found that minimum wage earners must work longer hours to afford a typical 0-2 bedroom place in the largest metropolitan areas in the country. For example, a minimum wage earner would have to work 82 hours per week in Nashville, Tennessee, or 79 hours per week in Austin, Texas, to afford rent.
These are the ten biggest metro areas with available data and the number of hours minimum-wage earners must work to afford rent.
1. Atlanta-Sandy Springs-Alpharetta, Georgia
- Median asking rent: $1,576
- Minimum wage 2024: $7.25
- Work hours per renter per week at minimum wage to afford rent in 2024: 84
2. Austin-Round Rock-Georgetown, Texas
- Median asking rent: $1,486
- Minimum wage 2024: $7.25
- Work hours per renter per week at minimum wage to afford rent: 79
3. Baltimore-Columbia-Towson, Maryland
- Median asking rent: $1,812
- Minimum wage 2024: $15.00
- Work hours per renter per week at minimum wage to afford rent: 46
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4. Birmingham-Hoover, Alabama
- Median asking rent: $1,236
- Minimum wage 2024: $7.25
- Work hours per renter per week at minimum wage to afford rent: 66
5. Boston-Cambridge-Newton, Massachusetts-New Hampshire
- Median asking rent: $2,942
- Minimum wage 2024: $15.00
- Work hours per renter per week at minimum wage to afford rent: 75
6. Charlotte-Concord-Gastonia, North Carolina-South Carolina
- Median asking rent: $1,519
- Minimum wage 2024: $7.25
- Work hours per renter per week at minimum wage to afford rent: 81
7. Chicago-Naperville-Elgin, Illinois-Indiana-Wisconsin
- Median asking rent: $1,793
- Minimum wage 2024: $16.20
- Work hours per renter per week at minimum wage to afford rent: 43
8. Cincinnati, Ohio
- Median asking rent: $1,365
- Minimum wage 2024: $10.45
- Work hours per renter per week at minimum wage to afford rent: 50
9. Cleveland-Elyria, Ohio
- Median asking rent: $1,193
- Minimum wage 2024: $10.45
- Work hours per renter per week at minimum wage to afford rent: 44
10. Columbus, Ohio
- Median asking rent: $1,190
- Minimum wage 2024: $10.45
- Work hours per renter per week at minimum wage to afford rent: 44
It’s worth pointing out that Buffalo was at number six on the list originally, but data wasn’t available.
The research found that although rents had started declining slowly, affordability remained an issue for low-income individuals since wages didn’t keep up with the increasing cost of living expenses. The study also uses the 30% rule of thumb, which states that housing expenses shouldn’t exceed 30% of one’s gross monthly income and shouldn’t go towards this category.
However, it’s important to mention that a report from Harvard’s Joint Center for Housing Studies revealed that in 2022, half of American renters were considered “cost-burdened,” which is a record amount. These renters were considered burdened by cost because an all-time high of 22.4 million households were spending more than 30% of their monthly income on rent and utility bills. The report also discovered that around 27% of households were spending more than half of their income on rent. There’s some optimism since the asking rent prices have started to drop while minimum wage increases, but we’ll have to wait and see how this situation unfolds in 2025.
This article originally appeared on GOBankingRates.com: How Many Hours Minimum Wage Earners Have To Work To Afford Rent in 10 Major Metros
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