Summary
A new study by Realtor.com shows that only five major U.S. metropolitan areas are affordable for minimum wage workers. This is despite a slight decrease in rent prices nationwide.
Key Facts
- The study comes from Realtor.com and focuses on the top 50 largest U.S. metro areas.
- National average rent is $1,693, which is 17% higher than before the pandemic.
- Only five metros—Buffalo, Rochester, St. Louis, Phoenix, and Kansas City—are affordable for minimum wage earners.
- Minimum wage has remained at $7.25 federally since 2009.
- In these five affordable metros, two minimum wage earners can work typical hours to afford median rent.
- High minimum wages compared to the federal rate help affordability in these areas.
- Rent affordability requires that no more than 30% of income go to housing costs.
- Detroit and Jacksonville may soon become affordable for minimum wage workers.
