Redfin’s analysis of rents in the U.S. has shown that the median household income needed to make the average rent is $66,120. That figure is only slightly lower than the highest median income needed in October 2022 when the average asking rent peaked at $1,700.
The trouble is only 39% of typical renters make that figure. Instead, Redfin says, “the U.S. renter household earns an estimated $54,712 per year.” Redfin based their affordability score on the assumption that people would be putting no more than 30% of their income toward rent.
Still, average wages are showing small but steady growth while asking rents are charting as “flat” as landlords back off of historically high rents requested during the pandemic. In fact, year-over-year changes in rents are running to -1.1% to -10.3% in Sun Belt metro areas like Atlanta, Dallas and Jacksonville, where a boom in pandemic-era construction has created a glut of vacancies. Most other metro areas are showing increases between 0.5% and 11.1%.
Annual income required to afford a median-priced U.S. apartment
- Jan. 2020 – $53,000
- July 2020 – $53,720
- Jan. 2021 – $54,120
- July 2021 – $60,400
- Jan. 2022 – $63,600
- July 2022 – $67,960
- Jan. 2023 – $65,640
- July 2023 – $65,640
- Jan. 2024 – $64,000
- May 2024 – $66,120
Source: Redfin
