How Many Hours Minimum Wage Earners Have To Work To Afford Rent in 10 Major Metros

January 16, 2025

3 min Read

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According to a recent report from Realtor.com, the median asking rent in the 50 largest metros for November 2024 was $1,703, $17 lower than the previous month and $57 lower than the peak in August 2022. However, as the cost of living has increased and the minimum wage is not keeping pace with inflation, low-income earners are forced to work longer hours to afford a place to live.

The report found that minimum wage earners must work longer hours to afford a typical 0-2 bedroom place in the largest metropolitan areas in the country. For example, a minimum wage earner would have to work 82 hours per week in Nashville, Tennessee, or 79 hours per week in Austin, Texas, to afford rent.

These are the ten biggest metro areas with available data and the number of hours minimum-wage earners must work to afford rent.

1. Atlanta-Sandy Springs-Alpharetta, Georgia

Median asking rent: $1,576
Minimum wage 2024: $7.25
Work hours per renter per week at minimum wage to afford rent in 2024: 84

2. Austin-Round Rock-Georgetown, Texas

Median asking rent: $1,486
Minimum wage 2024: $7.25
Work hours per renter per week at minimum wage to afford rent: 79

3. Baltimore-Columbia-Towson, Maryland

Median asking rent: $1,812
Minimum wage 2024: $15.00
Work hours per renter per week at minimum wage to afford rent: 46

4. Birmingham-Hoover, Alabama

Median asking rent: $1,236
Minimum wage 2024: $7.25
Work hours per renter per week at minimum wage to afford rent: 66

5. Boston-Cambridge-Newton, Massachusetts-New Hampshire

Median asking rent: $2,942
Minimum wage 2024: $15.00
Work hours per renter per week at minimum wage to afford rent: 75

6. Charlotte-Concord-Gastonia, North Carolina-South Carolina

Median asking rent: $1,519
Minimum wage 2024: $7.25
Work hours per renter per week at minimum wage to afford rent: 81

7. Chicago-Naperville-Elgin, Illinois-Indiana-Wisconsin

Median asking rent: $1,793
Minimum wage 2024: $16.20
Work hours per renter per week at minimum wage to afford rent: 43

8. Cincinnati, Ohio

Median asking rent: $1,365
Minimum wage 2024: $10.45
Work hours per renter per week at minimum wage to afford rent: 50

9. Cleveland-Elyria, Ohio

Median asking rent: $1,193
Minimum wage 2024: $10.45
Work hours per renter per week at minimum wage to afford rent: 44

10. Columbus, Ohio

Median asking rent: $1,190
Minimum wage 2024: $10.45
Work hours per renter per week at minimum wage to afford rent: 44

It’s worth pointing out that Buffalo was at number six on the list originally, but data wasn’t available.

The research found that although rents had started declining slowly, affordability remained an issue for low-income individuals since wages didn’t keep up with the increasing cost of living expenses. The study also uses the 30% rule of thumb, which states that housing expenses shouldn’t exceed 30% of one’s gross monthly income and shouldn’t go towards this category.

However, it’s important to mention that a report from Harvard’s Joint Center for Housing Studies revealed that in 2022, half of American renters were considered “cost-burdened,” which is a record amount. These renters were considered burdened by cost because an all-time high of 22.4 million households were spending more than 30% of their monthly income on rent and utility bills. The report also discovered that around 27% of households were spending more than half of their income on rent. There’s some optimism since the asking rent prices have started to drop while minimum wage increases, but we’ll have to wait and see how this situation unfolds in 2025.