Americans on minimum wage must work 104 hours a week on average to afford rent on a modest two-bedroom home, according to a major report.

The total, equivalent to holding 2.6 full-time jobs, would leave a person who gets eight hours’ sleep just 60 minutes per day to cover everything else, the study said.

A further analysis of the hourly wage that’s needed to comfortably afford rent on a two-bedroom home found California was the least affordable state at $42.25 per hour. A person on minimum wage in the Golden State would need to work 109 hours a week to afford the average two-bedroom home.

In Hawaii, someone must earn $41.83 per hour to cover the rent. On minimum wage, they’d need to work 139 hours a week.

The ‘Out of Reach’ report by the National Low Income Housing Coalition paints a bleak picture for renters across America. Arkansas, West Virginia and Mississippi were least expensive – but still required hourly earnings higher than minimum wage to comfortably afford rent.

California came out as the most expensive state to rent. A person on minimum wage would need to work 109 hours per week to afford a two-bedroom home. They'd need to earn $42.25 per hour to afford the same home comfortably, according to a major report by the National Low Income Housing Coalition

California came out as the most expensive state to rent. A person on minimum wage would need to work 109 hours per week to afford a two-bedroom home. They'd need to earn $42.25 per hour to afford the same home comfortably, according to a major report by the National Low Income Housing Coalition

California came out as the most expensive state to rent. A person on minimum wage would need to work 109 hours per week to afford a two-bedroom home. They’d need to earn $42.25 per hour to afford the same home comfortably, according to a major report by the National Low Income Housing Coalition

The NLIHC report said: 'In no state, metropolitan area, or county in the U.S. can a worker earning the federal or prevailing state or local minimum wage afford a modest two bedroom rental home at fair market rent by working a standard 40-hour work week'

The NLIHC report said: 'In no state, metropolitan area, or county in the U.S. can a worker earning the federal or prevailing state or local minimum wage afford a modest two bedroom rental home at fair market rent by working a standard 40-hour work week'

The NLIHC report said: ‘In no state, metropolitan area, or county in the U.S. can a worker earning the federal or prevailing state or local minimum wage afford a modest two bedroom rental home at fair market rent by working a standard 40-hour work week’

California came top of the table for the states where rent is most expensive, after researchers found a person must earn $42.25 per hour to comfortably afford a two-bedroom home

California came top of the table for the states where rent is most expensive, after researchers found a person must earn $42.25 per hour to comfortably afford a two-bedroom home

California came top of the table for the states where rent is most expensive, after researchers found a person must earn $42.25 per hour to comfortably afford a two-bedroom home

Researchers worked out the necessary hourly wage based on a job that’s 40 hours a week, 52 weeks a year. The study also made similar assessments based on the price of a one-bedroom home.

The report said: ‘In only seven percent of counties nationwide, not including Puerto Rico, can a full-time minimum-wage worker afford a one-bedroom rental home at fair market rent. These counties are in states with a minimum wage higher than the federal minimum wage of $7.25 per hour.

‘While higher minimum wages are necessary, they alone will not solve the housing affordability crisis. Sixty-six counties and municipalities have minimum wages higher than the federal or, where applicable, state minimum wage, but in each of these jurisdictions, the local minimum wage falls short of the local one-bedroom and two-bedroom Housing Wages.’

California demands the highest hourly wage to comfortably afford a two-bedroom home. Researchers worked out the totals based on a 40-hour work week, 365 days per year

California demands the highest hourly wage to comfortably afford a two-bedroom home. Researchers worked out the totals based on a 40-hour work week, 365 days per year

California demands the highest hourly wage to comfortably afford a two-bedroom home. Researchers worked out the totals based on a 40-hour work week, 365 days per year

Americans on minimum wage must work 104 hours a week on average to afford rent on a modest two-bedroom home, according to a major report

Americans on minimum wage must work 104 hours a week on average to afford rent on a modest two-bedroom home, according to a major report

Americans on minimum wage must work 104 hours a week on average to afford rent on a modest two-bedroom home, according to a major report

TOP ‘OUT OF REACH’ RENT STATES

California demands the highest hourly wage to comfortably afford a two-bedroom home. Researchers worked out the totals based on a 40-hour work week, 365 days per year.

Key: Hourly wage needed to comfortably rent a two-bedroom home / State minimum wage / Average rent / Hours on minimum wage

  1. California – $42.24 / $15.50 / $2,197 / 109
  2. Hawaii – $41.83 / $12 / $2,175 / 139
  3. Massachusetts – $41.64 / $15 / $2,165 / 111
  4. New York – $40.08 / $15 / $2,084 / 113
  5. Washington – $36.33 / $15.74 / $1,889 / 92
  6. DC – $35.33 / $17 / $1,838 / 83
  7. New Jersey – $33.50 / $14.13 / $1,742 / 95
  8. Colorado – $21.13 / $13.65 / $1,671 / 94
  9. Connecticut – $31.93 / $15 / $1,660 / 85
  10. Maryland – $31.08 / $13.25 / $1,616 / 94
<!—->

Advertisement

The findings come as America finally feels some respite amid months of soaring inflation.

The latest statistics released by the US Labor Department on Tuesday showed inflation has slowed to a four percent annual rate after it grew by just 0.1 percent between April and May.

While the annual rate is still double the Federal Reserve’s two percent target, it is well below the 9.1 percent peak seen last June.

Inflation pushes up the price of everything from rent to gas and groceries. It has increased more quickly than average wages.

The NLIHC report called on Congress to strengthen rental assistance programs and pass bills that encourage more affordable housing and improve existing stock.

The report follows research in May which found rent growth continues to outpace increases in income across the country.

Average rents have risen by 134.9 percent since 1999, while incomes have gone up by 76.8 percent in the same period, the data from Moody’s Analytics revealed.

The stark difference – pushing the cost of living for renters higher – was coupled with data that revealed there are just four states in America where average mortgage payments are cheaper than rents.

The Moody’s analysis found that, in 2022, the proportion of American household income needed to rent an average-priced apartment breached 30 percent for the first time in 25 years of tracking the trend.

The benchmark, called rent-to-income ratio (RTI), fell slightly at the start of 2023 to 29.6 percent.

Hawaii was second in the league table and a person must earn $41.83 per hour to rent a two-bedroom home while working 40 hours per week. They'd need to work an impossible 139 hours per week to afford the same home on minimum wage, the National Low Income Housing Coalition found

Hawaii was second in the league table and a person must earn $41.83 per hour to rent a two-bedroom home while working 40 hours per week. They'd need to work an impossible 139 hours per week to afford the same home on minimum wage, the National Low Income Housing Coalition found

Hawaii was second in the league table and a person must earn $41.83 per hour to rent a two-bedroom home while working 40 hours per week. They’d need to work an impossible 139 hours per week to afford the same home on minimum wage, the National Low Income Housing Coalition found

There are now seven metro areas in the country where RTI is more than 30 percent: 

  • Los Angeles: 36% RTI; average rent $2,456
  • Miami: 42% RTI; average rent $2,141
  • Palm Beach: 34% RTI; average rent $2,051
  • Fort Lauderdale: 37% RTI; average rent $2,108
  • New York: 68% RTI; average rent $4,334
  • Boston: 33% RTI; average rent $2,948
  • Northern New Jersey: 33% RTI; average rent $2,416

Separate research by Redfin found there are just four major U.S. metropolitan areas where the estimated monthly mortgage cost is lower than the estimated monthly rental cost.

You May Also Like

Twitter launches encrypted DMs – but Elon Musk warns users NOT to trust the WhatsApp feature yet 

Elon Musk has warned Twitter users that its new WhatsApp-style feature should…

Unhealthy heart at age of 36 can shrink brain in later life

Those with a higher estimated brain age around the physical age of…

Wife of Prince George County cop Francesco Marlett caught on camera with other woman has furious row with husband’s mistress on Facebook

The estranged wife and the mistress of the Maryland cop who was caught on…

Oneil Cruz fractures ankle on awkward slide, sparking a Pirates-White Sox near-brawl

Pirates and White Sox benches cleared for a near-brawl on Sunday in…