- U.S. renters now need to earn over $80,000 annually to comfortably afford typical rental housing, up from $60,000 five years ago.
- Since 2020, eight major markets require six-figure incomes to afford rent, double the number from five years ago.
- Typical apartment rents have increased by 28.7% to $1,858, and single-family home rents rose 42.9% to $2,256.
SEATTLE, May 12, 2025 — A recent analysis by Zillow (ZG, Financial) highlights a steep increase in rental affordability requirements across the U.S. Renters now must earn more than $80,000 annually to comfortably afford the typical rental, a significant rise from the $60,000 required five years ago. The analysis shows that eight major metropolitan areas now demand six-figure incomes for renters to afford housing comfortably, doubling the number when compared to 2020.
The surge in rental prices has outpaced wage growth. Since April 2020, typical U.S. apartment rents have jumped by 28.7%, reaching $1,858, while rents for single-family homes increased by 42.9%, climbing to $2,256. During the same period, the median household income has only grown by 22.5% to approximately $82,000, underscoring the disparity between rent and income growth.
Cities like New York require the highest income for rent, with renters needing $145,000, followed by San Jose at $137,000, and Boston at $127,000. On the other end of the spectrum, markets such as Buffalo, Oklahoma City, and Louisville remain the most affordable, requiring incomes of $55,000, $56,000, and $57,000 respectively.
High upfront costs, including broker fees and security deposits, add to affordability challenges, particularly in high-demand areas. However, legislative efforts such as the recent passage of the FARE Act in New York aim to alleviate some of these financial burdens. Zillow's rent affordability calculator helps renters better manage their housing budgets by aligning rental choices with financial capacity.
