A recent study reveals that the average renter in the United States needs to work 50 hours each week to cover their rent expenses.

This is a concerning discovery, according to financial experts. Fifty hours of work equates to just over 30% of the total hours in a month for someone working a 40-hour week. It is widely accepted that American families should ideally spend no more than 30% of their earnings on housing costs.

A recent study conducted by the personal finance platform Self Financial reveals that an average worker needs to put in over a week’s worth of labor at the standard hourly wage of $34.59 to afford the typical monthly rent, which is $1,733. This analysis relies on data from the Census and federal labor statistics.

It’s often suggested that individuals should not allocate over 30% of their income toward housing expenses, as this is considered a guideline for what constitutes “affordable” rent.

Kara Ng, a senior economist at Zillow, explained, “When you spend more on necessary expenses like housing, it limits the amount of money available for other purchases.”

However, the Self Financial report The research discovered that several states require individuals to work over 30% of the month, on average, just to afford their rent. This analysis considers median rent prices and hourly wages to determine the number of hours needed to earn enough for rent in each state:

• In California, where the average rent is $2,493 per month, a person would need to work 64.5 hours at a rate of $38.63 per hour.
• In Florida, with an average monthly rent of $2,033, a renter would have to work 63.5 hours at $32.01 an hour.
• In Texas, where monthly rents average $1,720, an individual must work 52.9 hours at a wage of $32.54 per hour.

Half of All Renters Face Unaffordable Costs

As of 2022, over 22 million households in the United States are allocating at least 30% of their earnings towards rent and utility bills, marking an unprecedented level, as highlighted in a report from 2024.

According to research from the Joint Center for Housing Studies at Harvard University, approximately 50% of all renters are spending more on rent than they can afford.

The cost of rent is increasing at a pace that surpasses wage growth. Between 2001 and 2022, median rents climbed by 21% when adjusted for inflation, while renters’ incomes only increased by a mere 2%, as reported by Harvard.

In 2024, the average household is allocating nearly 30% of its income towards rent, which is considered the limit of what is affordable. As of September, rents have increased by 3.3% compared to the previous year, according to Zillow. Their analysis indicates that in 49 out of the 50 largest metropolitan areas, rental prices are increasing year-over-year.

Since the pandemic began, Zillow reports that rents have surged by a third, indicating they are climbing at a rate quicker than inflation.

“This is a significant part of your budget and has been where we’ve observed the most change,”

“There have been significant and steady increases over the past four years,” commented Greg McBride, who serves as the chief financial analyst for personal finance at Bankrate.

If You’re Paying Under $1,000 in Rent, Consider Staying

At the moment, affordable rental options are becoming harder to find. Currently, around one-third of renters are paying less than $1,000 in monthly rent.

Monthly rent has reached its lowest point on record, based on a recent report by Redfin.

Back in 2012, Redfin noted that half of renters were paying under $1,000 monthly.

If your rent is still below $1,000, it’s advisable to stay where you are; currently, only 7.5% of available apartments list for less than that amount.

The positive aspect highlighted by the rental platform Rent. is that rents are mostly stable across the nation at this time. In certain cities—particularly in the Sun Belt—ample new construction has led to a surplus of apartments. As a result, landlords are providing incentives for potential tenants.

“We’re seeing a positive shift in the rental market currently, which is encouraging,” stated Chen Zhao, who leads economic research at Redfin. “I believe we will gradually address the issue of affordability.”

According to a report from the Bank of America Institute, many renters are relocating from pricier urban areas in the West and Northeast to more affordable locations in the South and Midwest.

According to the report, many renters are opting for less expensive apartments within the same market.

Even with rising rental prices, it’s still more affordable to rent than to purchase a home across all 50 major metropolitan areas, as reported by Bankrate. Currently, the average mortgage payment stands at $2,703 while the average rent is $1,979.

“Renters are still spending less,” said Ng.

Explore Solutions for High Rent Costs

If your rent exceeds 30% of your income, it’s essential to seek ways to reduce your expenses.

If a significant percentage of your income goes towards rent, financial specialists suggest that you might be struggling to make ends meet.

“This often forces individuals to make tough choices in other areas of their finances,” explained Kimberly Palmer, a personal finance expert from NerdWallet.

According to Palmer, the most effective way to reduce expenses is by targeting larger costs beyond basic necessities: “Expenses like dining out and entertainment are key areas to consider.”

For those who rent, there’s the potential loss of financial benefits that come with being a homeowner.

Owning a home can bring financial advantages, such as tax incentives and the chance to increase your home equity.

However, renters also have the opportunity to save money.

“The most important thing is to identify areas in your budget where you can set aside savings, even if it’s just a little each month,” advised Palmer. “This way, you’re gradually creating a fund for a down payment that you’ll need when you’re ready to buy a house.”

Think about implementing the “pay yourself first” approach suggested by McBride of Bankrate. This involves automatically directing portions of your paycheck towards retirement and emergency savings accounts.

available to assist you in achieving a future down payment. If you find yourself with extra funds at the end of the month, “that provides another opportunity to save,” he noted.

Additionally, Palmer suggested that you might think about delaying contributions towards retirement and college savings to focus more on saving for a home purchase.

“It’s just a short-term plan,” she clarified. Once you’ve acquired your home, you’ll be able to resume saving for other important goals.