Renters Need to Earn $100K to Afford Housing in These Cities

Rents have surged and outpaced salary increases in the wake of the pandemic, increasing the number of markets where the average renter cannot reasonably afford rent.

A recent report from Zillow found that the number of markets where renters need to earn $100,000 has doubled since 2020. There are now eight U.S. markets where renters need to earn six figures, up from four before the pandemic.

Rents have declined for more than a year, but they are still higher than before the pandemic. President Donald Trump’s tariffs on U.S.-imported building materials threaten to stop or even reverse the decline.

Additionally, large upfront costs (broker fees, security deposit, and advance rent payments), particularly in cities like New York and Boston, have also challenged rental affordability, Zillow found.

Rent Prices Have Surged Compared to Income

The majority of American households can still reasonably afford to pay rent, but it was much easier for them five years ago.

Since April 2020, the rent for a typical U.S. apartment is up 29% to $1,858 a month. Rent for a single-family home is up 43% to $2,256. Median household incomes have not grown at the same pace, climbing 22.5% in the last five years to $82,000, according to Zillow.

The median renter in the U.S. still pays just below 30% of their income on housing, a standard benchmark for consumers. However, the percentage of income a typical renter spends is up 10% from five years ago, rising to 29.6% from 27%.

Salaries have not caught up to rent prices in the majority of the most expensive markets, excluding San Jose and San Francisco. A median household would have to spend more than 30% of its income to rent in these places.