Earnings Needed to Afford a Typical US Apartment at Lowest Level Since March 2022

On Wednesday, Redfin reported that renters now need to earn $63,680 annually to afford the median US apartment rent of $1,592—the lowest level for the latter figure since March 2022. That rent is a 0.4% decline from a year ago and a 6.4% drop from August 2022, when the median rent reached a record high of $1,700. At that peak, renters needed an income of $68,000 to afford a typical apartment, nearly $5,000 more than they do today.

Redfin notes that on the other side of the affordability equation, renters are earning more than ever, with the estimated median income for renters in 2024 reaching $54,752. This represents a 5.3% increase from 2023’s $52,019 and a 35.2% jump from the pre-pandemic level of $40,505 in 2019. However, current incomes remain 14%—or $8,928 annually—below the $63,680 needed to afford the median monthly rent of $1,592.

However, the gap between renters’ earnings and the income needed to afford rent is narrowing. Last month, this difference was the smallest recorded in the five years Redfin has tracked these metrics.

In remarks accompanying the report, Redfin Senior Economist Sheharyar Bokhari said:

“Rental affordability will continue improving this year, as wages grow and rents remain flat, thanks to the recent boom in apartment construction. The affordability gap between renting and buying is likely to widen further in 2025, as home prices rise and mortgage rates remain high. That means potential homebuyers—especially from younger generations—may decide to continue renting for longer, as it’s the only affordable option.”