A new SmartAsset study evaluates how much household income is needed to rent a two-bedroom apartment in the 25 largest U.S. cities.
In the seven biggest cities studied, the average household needs to earn six figures, particularly to stay below the 30 percent rent-to-income ratio of being cost-burdened. The latest annual "Out of Reach" report from the National Low Income Housing Coalition finds that Americans working a 40-hour full-time work week, earning the federal $7.25 minimum wage cannot afford to rent a "modest" two-bedroom apartment in any state, Moneyish reports, explaining, "In other words, renters would need to work a 122-hour week for all 52 weeks of the year, or work three full-time jobs to afford a modest two-bedroom rental home."
San Francisco, Calif. is the most expensive city for renters on the list, where in order to avoid being so rent burdened, someone would need to make $188,000 per year. The average household income in the area is $103,801 per year. The numbers are similar for New York, the second least affordable place on the list, where New Yorkers would need to earn a minimum of $162,400 in order to pay no more than 28 percent of their income on a place in the Big Apple, where the average 2-bedroom apartment runs at $3,800 a month.
Advertisement
Related Stories
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable
Market Data + Trends
10 States Where Home Insurance Rates Have Risen the Most
Responding to the increasing number of natural disasters, insurers are hiking prices, with some states bearing the brunt more than others