/C O R R E C T I O N -- Zillow, Inc./

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A new Zillow analysis reveals that renters now need to earn over $80,000 annually to comfortably afford typical rental housing in the US, up from $60,000 five years ago. The number of markets requiring six-figure incomes for comfortable renting has doubled since 2020, now including eight major metros.

Since April 2020, typical US apartment rents increased by 28.7% to $1,858, while single-family home rents rose 42.9% to $2,256, outpacing median household income growth of 22.5%. The most expensive rental markets are New York ($145K income needed), San Jose ($137K), and Boston ($127K), while the most affordable are Buffalo ($55K), Oklahoma City ($56K), and Louisville ($57K).

Positive

Median household income has grown by 22.5% to $82,000 since 2020
San Jose and San Francisco show better wage-to-rent ratios, with median households spending 25% and 28% of income on rent respectively
Some markets remain affordable with Buffalo, Oklahoma City, and Louisville requiring only 23% or less of median income for rent

Negative

Nationwide rent increases (28.7% for apartments, 42.9% for houses) have outpaced wage growth (22.5%)
Eight major markets now require six-figure incomes to afford rent, double the number from 2020
In six of eight expensive markets, median households spend over 30% of income on rent
High upfront costs including broker fees and security deposits create additional affordability barriers

News Market Reaction – ZG

+4.94%

1 alert

+4.94% News Effect

On the day this news was published, ZG gained 4.94%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

05/12/2025 - 08:00 AM

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%.

Despite a significant jump in rents over the past five years, plenty of markets are still affordable for median earners. The most affordable rental markets are Buffalo ($55K income required), Oklahoma City ($56K) and Louisville ($57K). In these markets, the median renter would spend 23% of their income or less on rent, allowing more latitude in gaining financial freedom.

Beyond high monthly rent prices, large upfront costs can pose a barrier for renters looking to move. This is especially true in cities like New York and Boston, where broker fees — on top of security deposit and advance rent payments of one to two months — exacerbate rental affordability challenges. However, with the recent passage of the FARE Act by the New York City Council and ongoing legislative conversations around broker fees in the Massachusetts and New York state legislatures, renters may see a reprieve in the near future.

To help renters make informed choices, Zillow offers a rent affordability calculator that sheds light on housing budgets, ensuring that they know exactly what they can afford. Renters searching on Zillow can explore a wide range of rental options tailored to their needs. Whether they're looking for a one-bedroom apartment, a townhome, a single-family home or a room for rent, Zillow's listings make it easy to find a place that suits everyone's lifestyle.

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

About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate app and website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated real estate professionals, and easier buying, selling, financing, and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2025 MFTB Holdco, Inc., a Zillow affiliate.

¹ Median household income is taken from the American Community Survey (ACS) through 2023. Present-day estimates combine changes in the Employment Cost Index provided by the Bureau of Labor Statistics to forecast current median household income.

² Smoothed and seasonally adjusted ZHVI.

View original content to download multimedia:https://www.prnewswire.com/news-releases/number-of-markets-where-renters-need-to-earn-100k-to-afford-rent-has-doubled-since-2020-302451792.html

SOURCE Zillow, Inc.

FAQ

How much income is needed to afford rent in the US in 2025?

According to Zillow, renters need to earn over $80,000 annually to comfortably afford the typical rental in the US, up from $60,000 five years ago.

Which US cities require the highest income for rent in 2025?

The cities requiring the highest incomes for rent are New York ($145K), San Jose ($137K), and Boston ($127K).

How much have US rental prices increased since 2020?

Since April 2020, typical apartment rents increased 28.7% to $1,858, while single-family home rents rose 42.9% to $2,256.

What are the most affordable rental markets in the US for 2025?

The most affordable rental markets are Buffalo (requiring $55K income), Oklahoma City ($56K), and Louisville ($57K).

How many US markets require six-figure incomes for rent in 2025?

Eight major markets now require six-figure incomes to afford rent: San Jose, New York, Boston, San Diego, San Francisco, Los Angeles, Miami, and Riverside.

/C O R R E C T I O N -- Zillow, Inc./