SEATTLE, WA — Renters across the United States are facing a sharp rise in income requirements to afford housing, according to a new analysis by Zillow®. Over the past five years, the annual income needed to comfortably rent a typical home has risen from $60,000 to over $80,000, reflecting a stark shift in affordability.
This strain is most pronounced in major metropolitan areas. Renters in eight U.S. cities, including New York, Boston, and San Jose, now need at least a six-figure income to afford rent. The highest income thresholds are found in New York ($145,000), San Jose ($137,000), and Boston ($127,000). By contrast, cities like Buffalo, Oklahoma City, and Louisville remain more accessible, with required incomes hovering between $55,000 and $57,000.
Zillow’s analysis reveals that rents have far outpaced income growth. Since April 2020, the typical rent for a U.S. apartment has climbed 28.7%, reaching $1,858, while single-family home rents surged 42.9% to $2,256. During the same period, median household income rose by only 22.5%, exposing tenants to increasing financial pressure.
“Housing costs have surged since pre-pandemic, with rents growing quite a bit faster than wages,” said Orphe Divounguy, senior economist at Zillow. “This often leaves little room for other expenses, making it particularly difficult for those hoping to save for a down payment on a future home. High upfront costs are often overlooked, which can keep renters in their current homes.”
San Jose and San Francisco stand out for their slightly mitigated rent burden. Despite high living costs, median household incomes in these cities have managed to keep pace with rent increases. Still, other high-cost areas like New York, Miami, and Los Angeles show households spending well beyond the 30% income threshold associated with affordability.
Affordability challenges go beyond monthly rent payments. Upfront costs, including broker fees and security deposits, can create barriers for renters. Legislative efforts such as New York City’s recently passed FARE Act aim to address these financial hurdles by regulating broker fees, with broader reforms under discussion in both New York and Massachusetts.
For renters nationwide, the growing income disparity underlines broader issues with housing affordability and economic inequality. With rents on the rise and wages struggling to keep pace, many Americans face difficult choices between housing stability and financial flexibility. The report highlights an urgent need for solutions that address both affordability and housing supply, ensuring access for current and future renters.
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