Real Estate

These are the top 10 least affordable rental markets

Renting affordable to minimum wage earners in only 12 counties

As housing costs increase across the U.S., it seems that renting a home is becoming a luxury for the middle and upper class.

No really.

A new report from the National Low Income Housing Coalition entitled Out of Reach 2017 the High Cost of Housing, showed workers earning the federal or state minimum wage and working 40 hours per week can only afford a one-bedroom rental home in 12 counties.

And only 0.1% of renter households reside in these affordable areas. In fact, the report shows 76.4% of renter households would need to work more than 60 hours per week at minimum wage in order to rent a home without paying more than 30% of their income.

The map below shows where renters need to work the most hours at their state or federal minimum wage to afford renting their home:

Click to Enlarge

map

(Source: NLIHC)

NLIHC ranked all 50 states, the District of Columbia and Puerto Rico to see the state housing wage, or how much a renter would need to make per hour to afford a two-bedroom apartment while working 40 hours per week and paying 30% of their income toward housing. Here are the top 10:

10. Washington – $23.64

Two-bedroom apartment: $1,229

Minimum wage: $11

Average renter wage: $17.77

Hours to work per week to rent two-bedroom home at minimum wage: 86

9. Alaska – $24.16

Two-bedroom apartment: $1,256

Minimum wage: $9.80

Average renter wage: $19.11

Hours to work per week to rent two-bedroom home at minimum wage: 99

8. Connecticut – $24.72

Two-bedroom apartment: $1,285

Minimum wage: $10.10

Average renter wage: $16.97

Hours to work per week to rent two-bedroom home at minimum wage: 98

7. New Jersey – $27.31

Two-bedroom apartment: $1,420

Minimum wage: $8.44

Average renter wage: $17.86

Hours to work per week to rent two-bedroom home at minimum wage: 129

6. Massachusetts – $27.39

Two-bedroom apartment: $1,424

Minimum wage: $11

Average renter wage: $19.70

Hours to work per week to rent two-bedroom home at minimum wage: 100

5. New York – $28.08

Two-bedroom apartment: $1,460

Minimum wage: $9.70

Average renter wage: $23.98

Hours to work per week to rent two-bedroom home at minimum wage: 116

4. Maryland – $28.27

Two-bedroom apartment: $1,470

Minimum wage: $9.25

Average renter wage: $16.88

Hours to work per week to rent two-bedroom home at minimum wage: 122

3. California – $30.92

Two-bedroom apartment: $1,608

Minimum wage: $10.50

Average renter wage: $20.66

Hours to work per week to rent two-bedroom home at minimum wage: 118

2. Washington D.C. – $33.58

Two-bedroom apartment: $1,746

Minimum wage: $12.50

Average renter wage: $27.20

Hours to work per week to rent two-bedroom home at minimum wage: 107

1. Hawaii – $35.20

Two-bedroom apartment: $1,830

Minimum wage: $9.25

Average renter wage: $15.64

Hours to work per week to rent two-bedroom home at minimum wage: 152

To compare other U.S. markets, or see more data on the top 10, click here

Most Popular Articles

CFPB to consider changing or eliminating TRID rule

The CFPB has been taking a long, hard look at some of its rules and regulations. Next up on its list to review is TRID, and it looks like eliminating the rule entirely is not off the table.

Nov 20, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please