Rent prices have increased by 2% to 4% nationwide each year since 2011, according to CoreLogic. While gains in federal and state minimum wage rules have somewhat mitigated the bite for lower-wage earners in certain areas, it’s often not enough to compete with the rising cost of housing. Meanwhile, the population of renters has increased, forcing renters to compete for a finite supply of rental housing, which is already pricing out some people.
Using data from the Joint Center of Housing Studies and the Economic Policy Institute, MagnifyMoney identified 16 cities where the median rent claims all of a minimum wage worker’s take-home pay, and then some. Let’s take a look at big cities that are more affordable and ones where the rent is too darn high.
Image Credit: Deposit Photos.
Methodology
In December 2019, MagnifyMoney calculated the minimum wage of workers in 34 of the nation’s largest cities — those with a population of 300,000 or more in 2018 — to determine the relative affordability of rental housing. Our findings are based on data from the Joint Center of Housing Studies for median rent and the Economic Policy Institute for minimum wages. To find estimated take-home pay after payroll tax, we assumed 16% withholding in Social Security, Federal Insurance Contributions Act (FICA), Medicare and federal income tax.
Image Credit: Deposit Photos.
16. San Francisco
Minimum wage: $15.59
Rent as percentage of take-home pay: 101%
Image Credit: Deposit Photos.
15. Denver
Minimum wage: $11.10
Rent as percentage of take-home pay: 103%
Image Credit: Deposit Photos.
14. Baltimore
Minimum wage: $10.10
Rent as percentage of take-home pay: 103%
Image Credit: Deposit Photos.
13. Indianapolis
Minimum wage: $7.25
Rent as percentage of take-home pay: 104%
Image Credit: Deposit Photos.
12. Tampa, Florida
Minimum wage: $8.46
Rent as percentage of take-home pay: 106%
Image Credit: Deposit Photos.
11. Las Vegas
Minimum wage: $8.25
Rent as percentage of take-home pay: 111%
Image Credit: Deposit Photos.
10. San Antonio
Minimum wage: $7.25
Rent as percentage of take-home pay: 111%
Image Credit: Deposit Photos.
9. San Diego
Minimum wage: $12.00
Rent as percentage of take-home pay: 113%
Image Credit: Deposit Photos.
8. Charlotte, North Carolina
Minimum wage: $7.25
Rent as percentage of take-home pay: 114%
Image Credit: Deposit Photos.
7. Orlando, Florida
Minimum wage: $8.46
Rent as percentage of take-home pay: 116%
Image Credit: Deposit Photos.
6. Houston
Minimum wage: $7.25
Rent as percentage of take-home pay: 121%
Image Credit: Deposit Photos.
5. Philadelphia
Minimum wage: $7.25
Rent as percentage of take-home pay: 124%
Image Credit: Deposit Photos.
4. Dallas
Minimum wage: $7.25
Rent as percentage of take-home pay: 125%
Image Credit: Deposit Photos.
3. Atlanta
Minimum wage: $7.25
Rent as percentage of take-home pay: 129%
Image Credit: Deposit Photos.
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2. Miami
Minimum wage: $8.46
Rent as percentage of take-home pay: 132%
Image Credit: Deposit Photos.
1. Austin, Texas
Minimum wage: $7.25
Rent as percentage of take-home pay: 143%
