Seattle, USA – The financial squeeze on renters across the United States is tightening, with rising living costs making it increasingly difficult to find affordable housing.
According to a new analysis from Zillow, renters nationwide now need to earn over $80,000 annually to comfortably afford the typical rental, a significant jump from approximately $60,000 just five years ago.
The new Zillow® analysis highlights that in at least eight major metropolitan areas, renters generally require a six-figure income to meet the standard affordability benchmark.
Since April 2020, rent for a typical U.S. apartment has climbed by 28.7%, reaching $1,858, while rent for a single-family home has surged even more, increasing by 42.9% to $2,256.
Over the same period, the median household income has risen by a comparatively lower 22.5% to about $82,000, demonstrating that wages have not kept pace with rental costs.
“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.”
The standard measure for housing affordability suggests spending no more than 30% of income on rent. A renter earning the current median income and renting a typical U.S. property is just on the cusp of this threshold, spending 29.6% of their income on rent. However, this national average masks the significant challenges in more expensive markets.
The Zillow report identifies eight major metro areas where comfortably affording a typical rental generally requires an income of $100,000 or more:
- San Jose, California
- New York City, New York
- Boston, Massachusetts
- San Diego, California
- San Francisco, California
- Los Angeles, California
- Miami, Florida
- Riverside, California
The typical rent in these markets is many hundreds of dollars above the national asking rent of $2,024.
In most of these cities, the median household would spend over 30% of their income on rent for a typical property. San Jose and San Francisco are relative outliers, where wages have kept up better, with the median household spending around 25% and 28% of income on a typical rental, respectively.
Despite the nationwide trend, some markets remain more affordable. The report names Buffalo, New York ($55K income required), Oklahoma City, Oklahoma ($56K), and Louisville, Kentucky ($57K) as the most affordable rental markets among those analyzed. In these cities, the median renter spends 23% or less of their income on rent, offering greater financial flexibility.
Beyond monthly costs, high upfront expenses like security deposits and broker fees, particularly in markets like New York and Boston, can create additional barriers for renters looking to move. Legislative efforts in states like Massachusetts and New York aim to address broker fees, potentially offering some future relief.
To assist renters in navigating the complex market, Zillow offers tools like a rent affordability calculator and extensive listings tailored to various needs and budgets on Zillow Rentals.
| Metropolitan Area* | Income Needed to Afford Rent, April 2025 | Change in Needed Income Since April 2020 | Zillow Observed Rent Index (ZORI), April 20252 | Renter Affordability, April 2025 |
| United States | $80,949 | 34.5 % | $2,024 | 29.6 % |
| New York City** | $144,960 | 24.8 % | $3,624 | 54.6 % |
| Los Angeles, CA | $118,958 | 28.3 % | $2,974 | 36.4 % |
| Chicago, IL | $87,428 | 31.1 % | $2,186 | 28.3 % |
| Dallas, TX | $71,413 | 28.6 % | $1,785 | 23.2 % |
| Houston, TX | $67,731 | 23.4 % | $1,693 | 24.2 % |
| Washington, DC | $97,179 | 24.4 % | $2,429 | 22.6 % |
| Philadelphia, PA | $77,058 | 29.0 % | $1,926 | 25.2 % |
| Miami, FL | $109,962 | 54.4 % | $2,749 | 40.4 % |
| Atlanta, GA | $76,745 | 36.3 % | $1,919 | 25.0 % |
| Boston, MA | $127,007 | 26.8 % | $3,175 | 32.5 % |
| Phoenix, AZ | $74,101 | 35.9 % | $1,853 | 24.5 % |
| San Francisco, CA | $124,267 | 9.3 % | $3,107 | 27.6 % |
| Riverside, CA | $102,722 | 45.6 % | $2,568 | 32.8 % |
| Detroit, MI | $59,873 | 38.5 % | $1,497 | 23.5 % |
| Seattle, WA | $90,840 | 23.2 % | $2,271 | 23.1 % |
| Minneapolis, MN | $67,714 | 17.6 % | $1,693 | 20.2 % |
| San Diego, CA | $122,810 | 40.8 % | $3,070 | 33.2 % |
| Tampa, FL | $86,301 | 52.0 % | $2,158 | 33.5 % |
| Denver, CO | $78,862 | 22.8 % | $1,972 | 21.6 % |
| Baltimore, MD | $75,158 | 29.6 % | $1,879 | 22.6 % |
| St. Louis, MO | $57,104 | 37.4 % | $1,428 | 20.8 % |
| Orlando, FL | $81,789 | 37.5 % | $2,045 | 29.6 % |
| Charlotte, NC | $72,091 | 35.8 % | $1,802 | 25.0 % |
| San Antonio, TX | $58,590 | 19.4 % | $1,465 | 22.7 % |
| Portland, OR | $74,076 | 24.2 % | $1,852 | 22.0 % |
| Sacramento, CA | $94,002 | 30.7 % | $2,350 | 27.8 % |
| Pittsburgh, PA | $59,274 | 28.2 % | $1,482 | 23.2 % |
| Cincinnati, OH | $63,444 | 39.5 % | $1,586 | 23.0 % |
| Austin, TX | $68,840 | 17.6 % | $1,721 | 19.8 % |
| Las Vegas, NV | $72,060 | 35.6 % | $1,801 | 26.8 % |
| Kansas City, MO | $61,457 | 38.7 % | $1,536 | 21.9 % |
| Columbus, OH | $62,493 | 36.9 % | $1,562 | 22.9 % |
| Indianapolis, IN | $64,391 | 41.6 % | $1,610 | 23.3 % |
| Cleveland, OH | $58,497 | 40.9 % | $1,462 | 24.4 % |
| San Jose, CA | $136,532 | 13.0 % | $3,413 | 25.2 % |
| Nashville, TN | $74,739 | 28.8 % | $1,868 | 24.7 % |
| Virginia Beach, VA | $71,908 | 43.0 % | $1,798 | 25.5 % |
| Providence, RI | $87,829 | 51.2 % | $2,196 | 29.7 % |
| Jacksonville, FL | $69,670 | 36.7 % | $1,742 | 25.9 % |
| Milwaukee, WI | $59,139 | 32.6 % | $1,478 | 21.6 % |
| Oklahoma City, OK | $55,634 | 33.4 % | $1,391 | 22.5 % |
| Raleigh, NC | $70,451 | 31.0 % | $1,761 | 20.6 % |
| Memphis, TN | $58,761 | 37.7 % | $1,469 | 26.0 % |
| Richmond, VA | $68,307 | 40.2 % | $1,708 | 22.7 % |
| Louisville, KY | $56,549 | 35.7 % | $1,414 | 23.3 % |
| New Orleans, LA | $66,141 | 28.7 % | $1,654 | 30.5 % |
| Salt Lake City, UT | $69,881 | 34.2 % | $1,747 | 20.8 % |
| Hartford, CT | $77,119 | 45.2 % | $1,928 | 23.6 % |
| Buffalo, NY | $55,319 | 38.9 % | $1,383 | 22.3 % |
| Birmingham, AL | $57,428 | 32.7 % | $1,436 | 23.4 % |
*Table ordered by market size
**Includes only New York City’s five boroughs; based on StreetEasy’s Rent Index
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