A minimum wage worker would have to work 106 hours per week to afford rent.
Rental Affordability for Minimum Wage Earners Improves Marginally
Renting has become slightly more affordable for minimum workers across the United States, but not by much, according to a Redfin report.
A worker making an average minimum wage would have to work 106 hours a week to afford a median-priced apartment that costs $1,599 per month, the report found. That is down from a peak of 125 hours of minimum-wage work required to afford a median-priced apartment in 2022 when rents peaked at $1,704.
The estimate is based on an analysis of median asking rents during the three months ending January 31 as well as 2024 annual wage data. While the $7.25 federal minimum wage hasn’t increased in more than 15 years, the effective minimum wage has increased in 30 states, according to the Economic Policy Institute. Redfin based its estimate on a minimum wage of $11.59.
Renting has become slightly more affordable for minimum workers across the United States, but not by much, according to a Redfin report.
A worker making an average minimum wage would have to work 106 hours a week to afford a median-priced apartment that costs $1,599 per month, the report found. That is down from a peak of 125 hours of minimum-wage work required to afford a median-priced apartment in 2022 when rents peaked at $1,704.
The estimate is based on an analysis of median asking rents during the three months ending January 31 as well as 2024 annual wage data. While the $7.25 federal minimum wage hasn’t increased in more than 15 years, the effective minimum wage has increased in 30 states, according to the Economic Policy Institute. Redfin based its estimate on a minimum wage of $11.59.
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“It’s obviously not realistic for most people to clock into their job for over 100 hours a week, but this thought experiment shines a light on the massive rental affordability gap between the average American and our country’s lowest earners,” said Redfin chief economist Daryl Fairweather.
“It’s virtually impossible for a minimum-wage worker to afford the typical apartment on their own, which is why many have to find ways to reduce their housing expenses, like living with roommates or family members, applying for a spot in public housing, or using Housing Choice Vouchers.”
Workers earning less than minimum wage tend to be younger and female, with many working in the service industry, according to the Bureau of Labor Statistics. Median rent remains about 20.4% higher than pre-pandemic levels, although asking rent is not growing as fast as it was during the pandemic, the report said.
The most expensive market for minimum-wage workers is New Hampshire, where they would have to work 224 hours a week to afford a median rent of $2,110. In Pennsylvania, a minimum-wage worker would need to work 183 hours a week and in Idaho, they would have to work 165 hours per week to afford median rent.
Meanwhile, in South Dakota where the minimum wage is $11.20 per hour, workers would only have to clock 75 hours per week to afford a $1,085 median-priced apartment. Missouri and Nebraska were also fairly affordable for minimum-wage workers, requiring 76 hours of work per week to afford median rent.
Source: GlobeSt.
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