Yahoo Finance

In the news release, Number of markets where renters need to earn $100K to afford rent has doubled since 2020, issued 12-May-2025 by Zillow, Inc. over PR Newswire, we are advised by the company that the income data for New York City has been updated in the subheadline, table and infographic. The complete, corrected release follows:

Number of markets where renters need to earn $100K to afford rent has doubled since 2020

Nationwide, the salary required to afford rent is $20K higher than it was five years ago 

• Renters need to make six figures to comfortably afford rent in eight major markets, up from four markets five years ago.

• The most expensive rental markets, with the highest required income, are San Jose ($137K income), New York ($145K) and Boston ($127K).

• The most affordable rental markets, with the lowest required income, are Buffalo ($55K income), Oklahoma City ($56K) and Louisville ($57K).

SEATTLE, May 12, 2025 /PRNewswire/ -- The rising costs of living have impacted affordability for renters across the country. Nationwide, renters today need to earn more than $80,000 to comfortably afford the typical rental, up from $60,000 just five years ago. In eight major metro areas, renters now need to make six figures to comfortably afford rent, a new Zillow® analysis reveals.

Since April 2020, rent for a typical U.S. apartment has increased by 28.7%, to $1,858, while rent for a single-family home increased by 42.9%, to $2,256. Over that time, the median household income¹ has only risen by 22.5% to about $82,000 — showing that wages have not kept up with rents.

"Housing costs have surged since pre-pandemic, with rents growing quite a bit faster than wages," said Orphe Divounguy, senior economist at Zillow. "This often leaves little room for other expenses, making it particularly difficult for those hoping to save for a down payment on a future home. High upfront costs are often overlooked, which can keep renters in their current homes."

A renter making the median income and leasing a typical U.S. rental is just on the right side of the 30% affordability line — the rent burden threshold — spending 29.6% of their income on rent. To stay below that 30% line, renters in San Jose, New York, Boston, San Diego, San Francisco, Los Angeles, Miami and Riverside, California, generally need to earn six figures. The typical rent in these markets is many hundreds of dollars above the national asking rent of $2,024.

In six of these eight markets, the median household would spend over 30% of its income on a typical rental. However, in San Jose and San Francisco, wages have been better at keeping pace with rent. A median San Jose household would spend 25% of its income on a typical rental, while in San Francisco, it would spend 28%.