Mayukh Saha

Mayukh Saha

August 1, 2024

The Salary You Need to Live Comfortably in 25 U.S. Cities

The classic rule of thumb for budgeting rent is to allocate no more than one-third of your income. However, in today’s rental market, this guideline is becoming increasingly difficult to follow. The National Low Income Housing Coalition (NLIHC) has revealed a stark reality: the gap between what people earn and what they need to afford rent is widening. This article will explore this issue, highlighting the disparity between the living wage and rental costs across the United States.

Understanding the Housing Wage

Living Wage
Image Credits: Unsplash

The Housing Wage, as defined by the NLIHC, is the hourly wage a full-time worker must earn to afford a modest rental unit without spending more than 30% of their income on housing. In 2023, the national average Housing Wage was $28.58 for a two-bedroom rental and $23.67 for a one-bedroom rental. However, this national average masks significant variations across states.

Read More: Study: Living in Nature Protects Against Mental Illness While Living in the City Can Increase Risk

Extreme Variations by State

rent
Image Credits: NLIHC

The NLIHC’s study reveals a vast range in Housing Wages across the United States. In California, for instance, the required hourly wage for a two-bedroom rental is a staggering $42.25, while in Arkansas, it’s a comparatively lower $16.27. These disparities underscore the impact of location on rental affordability.

Minimum Wage vs. Housing Wage

Rent
Image Credits: Unsplash

The federal minimum wage of $7.25 per hour falls far short of the Housing Wage in most states. This discrepancy creates a challenging situation for low-income renters, who often struggle to find housing they can afford. Compounding the issue is the shortage of affordable rental units. The NLIHC reports that there were only 34 affordable units available for every 100 extremely low-income renters. To provide a comprehensive overview, we have the 25 states where exact wage required to rent a two-bedroom apartment is the most expensive. (The average hourly wages are taken according to ZipRecruiter):

Read More: Sprawling 8-mile-long ‘canvas’ of ice age beasts discovered hidden in Amazon rainforest

California – $42.25

California
Image Credits: Unsplash

The sunny state tops the list with the highest wage required to rent a two-room apartment. However, the average wage of the state is only $38.10.

Hawaii – $41.83

Hawaii
Image Credits: Unsplash

The globally popular tourist destination has a pretty big gap between the hourly wage and the minimum wage required. The hourly wage for this state is only $26.48.

Massachusetts – $41.64

Massachusetts
Image Credits: Unsplash

The state that is home to Boston has the third highest cost of renting a two bedroom apartment. The average hourly wage in the state is $20.51.

New York – $40.08

New York
Image Credits: Unsplash

The popular conception is that this is one of THE costliest states to live in. It is not far off from the truth. Moreover, the average hourly wage here is $31.31.

Washington – $36.33

Washington
Image Credits: Unsplash

Not to be confused with the country’s capital, Washington is a completely separate state. It is home to Mount Rainier. The average hourly wage here is $27.66.

Wyoming – $36.33

Wyoming
Image Credits: Unsplash

The landlocked state boasts grand adventures in the wilderness. However, for the inhabitants, life is bit hard. The average hourly wage here is $27.32.

District of Columbia – $35.35

Washington, DC
Image Credits: Unsplash

If you didn’t know, the DC in Washington DC stands for “District of Columbia”. The average hourly wage at the capital of the country is $35.43. The gap here is not as much.

New Jersey – $33.25

New Jersey
Image Credits: Unsplash

The home state of the iconic Statue of Liberty does not have the most expensive rent required. However, the gap is still considerable, with the average hourly wage at $27.72.

Colorado – $32.13

Colorado
Image Credits: Unsplash

Denver, with its vibrant downtown, belongs to this state, as does the Rocky Mountain National Park. The average hourly wage here is $23.93.

Connecticut – $31.93

Connecticut
Image Credits: Unsplash

The state has a reputation for its coastal cities and its many small towns. Even then, the gap is quite significant with the average hourly wage here being $24.64.

Maryland – $31.08

image Credits: Unsplash

The abundant coastlines and waterways mark out this state, traversing between Chesapeake Bay and the Atlantic Ocean. The average hourly wage here is $24.03.

Florida – $30.59

Florida
Image Credits: Unsplash

Some would argue that it is the sunnier state, compared to California. The gap, though, is definitely comparable. The average hourly wage here is $19.89.

Arizona – $29.93

Image Credits: Unsplash

Arizona is where the Colorado River carved behind the Grand Canyon. The gap can be comparable to the grandness, as the average hourly wage is $18.45.

New Hampshire – $29.86

New Hampshire
image Credits: Unsplash

The state’s characteristics are its quaint towns and large expanses of wilderness. The average hourly wage here is $19.47.

Oregon – $29.72

Oregon
Image Credits: Unsplash

This unassuming state has a cost of living that is, on average, 10% higher than the rest of the country. But the average hourly wage here is $27.05.

Nevada – $27.99

Nevada
Image Credits: Unsplash

The home of Las Vegas, and the Hoover Dam! This state, with a lot of its area bordering the desert, has an average hourly wage of $19.21.

Rhode Island – $27.78

Rhode Island
image Credits: Unsplash

Colonial towns on the seaside are the highlights of this state in the New England region. The average hourly wage of this state is $18.55.

Virginia – $26.84

Virginia
Image Credits: Unsplash

It is one of the original 13 colonies that made up the United States, and it is also considered one of the best places to live. The average hourly wage here is $19.90.

Alaska – $26.32

Alaska
Image Credits: Unsplash

The snowy and wintry landscape of Alaska is not for the faint-hearted or the cold-blooded. The average hourly wage in this state is $27.29.

Delaware – $26.09

Delaware
Image Credits: Unsplash

The state is also known as the chemical capital, the credit card capital, and the corporate capital. The average hourly wage here is $24.79.

Vermont – $25.54

Vermont
Image Credits: Unsplash

The stunning natural landscape of the region draws in many and all, as well as the 100-odd covered old wooden bridges. The average hourly wage here is $30.88. For once, the rates are not worrying.

Texas – $25.06

Texas
Image Credits: Unsplash

One of the states bordering Mexico has a cost of living that is 7% lower than the national average. The average hourly wage here is $22.71.

Utah – $24.93

Utah
Image Credits: Unsplash

Utah has maintained a consistent ranking of being one of the safest US states and cities. The average hourly wage here is $24.11.

Georgia – $24.75

Georgia
Image Credits: Unsplash

Georgia boasts incredible overall affordability, and is one of the best places to buy a home and raise a family. The average hourly wage here is $23.76.

Maine – $24.73

Maine
Image Credits: Unsplash

Maine’s beautiful coastline scenery is rivalled by its historic lighthouses and other sites. The average hourly wage in this coastal state is $23.50.

Minimum Wage Workers and the Rental Market

Rent
Image Credits: Unsplash

For minimum wage workers, the situation is even more dire. In some states, they would need to work an impractical number of hours per week to afford a one-bedroom apartment. For example, the NLIHC found that minimum living wage earners in Hawaii would need to work 107 hours per week, while those in New York would need to work 98 hours.

Read More: California company leases backyards for 99 years to build tiny homes and rent them at affordable rates to fight the housing crisis

This content has, in part, been generated with the aid of an artificial intelligence language model. While we strive for accuracy and quality, please note that the information provided may not be entirely error-free or up-to-date. We recommend independently verifying the content and consulting with professionals for specific advice or information. We do not assume any responsibility or liability for the use or interpretation of this content.