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Money Cities Where You Need to Work the Most Hours to Pay Rent
It’s becoming increasingly difficult for Americans to keep a roof above their head with recent data suggesting that it requires 50 hours of work to cover expensive rent costs in 2024.
There’s plenty of talk about living costs but the rise of rent is now outpacing wage increases, proving to be a heavy burden on Americans.
Studies show that states such as Hawaii, Nevada, California, and Florida have the worst wage-to-rent ratio, meaning that residents of those areas will need to work more hours just to cover simple living expenses.
Let’s take a look at how rent has increased more in the last year than it has in the past two decades and how that affects the everyday American.
Key statistics
- On average, 50 work hours are needed to cover monthly rent costs in the U.S.
- There was a 22.2% rise in rent prices in the last year, the highest in 20 years.
- Average rent costs increased by 3.65% between 2004 and 2023.
- Americans are required to eat into 19.7% more of their wages for rent in 2024 compared to 2023.
- Residents of Hawaii need to work 66.2 hours to meet average monthly rental costs.
- The metro area of San Jose, Sunnyvale, and Santa Clara requires 89.8 hours of work per month to meet rent.
How rent is outpacing wage growth in the U.S.
Rent prices in the U.S. have been increasing at a rate that significantly outpaces wage growth, presenting financial challenges for many Americans. This study collected data from the Census and inflated it to 2024 prices using the Consumer Price Index. Based on this calculation, rent in the U.S. increased by 22.2% in the last year, the highest inflation seen in the last 20 years.
Rent prices are growing at an alarming rate with year-on-year increases almost every year in the past two decades (2020 was the only year that didn’t see an increase).
Historically, from 2004 to 2023, rent increases averaged 3.6% annually, underscoring the significant nature of recent spikes. [1] U.S. Census, “Selected Housing Characteristics” https://data.census.gov/table/ACSDP1Y2022.DP04?q=rent&g=010XX00US$3100000
Due to wages not keeping pace with continuously rising rent costs in America, the number of hours of work it takes to cover rent has increased by 19% to 50 hours in 2024 compared to 42 hours in 2023. Consequently, a significant number of Americans are forced to work extra hours just to afford their living expenses. This means people are now using almost one-fifth more of their wages for living costs compared to 2023.
Comparing the rent increase in the last year to the 2.5% rise in wages reveals just how much of their income Americans need to spare merely for the cost of living.
Let’s take a look over the past two decades of rent and wage increases, to see both the correlation and the recent spike.
| Years | % change in wages from previous year | % change in monthly rent from previous year |
|---|---|---|
| 2004 | ||
| 2005 | 3.45% | 2.97% |
| 2006 | 4.27% | 3.99% |
| 2007 | 2.97% | 2.08% |
| 2008 | 3.13% | 4.28% |
| 2009 | 2.81% | 2.18% |
| 2010 | 1.86% | 1.54% |
| 2011 | 2.00% | 1.87% |
| 2012 | 1.88% | 1.49% |
| 2013 | 2.11% | 2.38% |
| 2014 | 2.08% | 3.20% |
| 2015 | 2.25% | 2.68% |
| 2016 | 2.57% | 2.29% |
| 2017 | 2.55% | 3.16% |
| 2018 | 3.03% | 4.55% |
| 2019 | 3.30% | 3.69% |
| 2020 | 4.87% | -0.09% |
| 2021 | 4.27% | 8.67% |
| 2022 | 5.38% | 9.15% |
| 2023 | 4.52% | 9.10% |
| 2024 | 2.58% | 22.20% |
Sources [1] U.S. Census, “Selected Housing Characteristics” https://data.census.gov/table/ACSDP1Y2022.DP04?q=rent&g=010XX00US$3100000 [2] BLS, “Average hourly and weekly earnings” https://www.bls.gov/charts/state-employment-and-unemployment/average-hourly-earnings-and-weekly-hours-and-earnings-by-state.htm [3] Federal Reserve, “Average Hourly Earnings of All Employees” https://fred.stlouisfed.org/series/CES0500000003
The chart exposes how significant the increases have been in the last year, trumping any year since 2004.
In 2005, there was only a 2.97% increase in rent costs and a 3.45% wage increase that same year. From 2004-2007, wages were growing faster than rent costs, ultimately benefiting American workers.
Today's economic landscape shows a lopsided increase in rent relative to wages, with the last four years highlighting a growing disparity between housing costs and earnings. This trend underscores a critical challenge in affordability, placing increasing pressure on households across the nation.
Working hours to pay rent over time
In 2024 it takes 50 hours of work a month to cover rent costs, this takes the average hourly rate of $34.59 and average rent of $1,733 into account. This shows a 66.6% increase in the hours needed to pay rent on an average wage since 2004.
This data represents the highest average number of hours needed to pay rent in the past two decades. In contrast, the lowest was in 2020, needing only 37 hours to meet rental expenses.
From 2004 to 2017, 38 hours on the average hourly wage were required to meet rent costs indicating a period of stability. What’s more, the four years that followed never extended past 39 hours, again, exposing the rise in hours needed to cover rent costs today.
| Years | Hours in Avg hourly wage |
|---|---|
| 2024 | 50 |
| 2023 | 42 |
| 2022 | 40 |
| 2021 | 39 |
| 2020 | 37 |
| 2019 | 39 |
| 2018 | 39 |
| 2017 | 38 |
| 2016 | 38 |
| 2015 | 38 |
| 2014 | 38 |
| 2013 | 38 |
| 2012 | 38 |
| 2011 | 38 |
| 2010 | 38 |
| 2009 | 38 |
| 2008 | 38 |
| 2007 | 38 |
| 2006 | 38 |
| 2005 | 38 |
| 2004 | 38 |
Sources [1] U.S. Census, “Selected Housing Characteristics” https://data.census.gov/table/ACSDP1Y2022.DP04?q=rent&g=010XX00US$3100000 [2] BLS, “Average hourly and weekly earnings” https://www.bls.gov/charts/state-employment-and-unemployment/average-hourly-earnings-and-weekly-hours-and-earnings-by-state.htm [3] Federal Reserve, “Average Hourly Earnings of All Employees” https://fred.stlouisfed.org/series/CES0500000003
Working hours needed to pay rent on the federal minimum wage
For those on the federal minimum wage, it takes 239 hours of work to pay the median monthly rent cost in 2024. This is compared to 140 hours in 2004, an increase of 70.7% over this 20-year period.
| Years | Hours in min wage |
|---|---|
| 2024 | 239 |
| 2023 | 196 |
| 2022 | 179 |
| 2021 | 164 |
| 2020 | 151 |
| 2019 | 151 |
| 2018 | 146 |
| 2017 | 140 |
| 2016 | 135 |
| 2015 | 132 |
| 2014 | 129 |
| 2013 | 125 |
| 2012 | 122 |
| 2011 | 120 |
| 2010 | 118 |
| 2009 | 116 |
| 2008 | 126 |
| 2007 | 135 |
| 2006 | 150 |
| 2005 | 145 |
| 2004 | 140 |
Sources [1] U.S. Census, “Selected Housing Characteristics” https://data.census.gov/table/ACSDP1Y2022.DP04?q=rent&g=010XX00US$3100000 [4] DOL, “Changes in Basic Minimum Wages” https://www.dol.gov/agencies/whd/state/minimum-wage/history
Working hours to pay rent by state
The number of working hours on the average hourly wage differs depending on where you’re located with Hawaii, Nevada, and California topping the list and North Dakota and West Virginia on the other end of the spectrum.
Analyzing the data on rent costs versus average hourly wages reveals significant fluctuations in the number of work hours needed to afford rent across different regions. This discrepancy highlights the variable economic conditions that affect housing affordability depending on the state that you’re based in.
Let’s take a look at the working hours needed in different states across the United States of America.
Hawaii residents need to work 66.2 hours on the average hourly wage to cover monthly rent
Hawaii tops the charts in the U.S. for the highest number of work hours needed to cover rent costs.
Hawaiian residents must work a minimum of 66.2 hours a month on an average wage to cover the median monthly rent of $2,417.
This severe mismatch highlights the issue of the stark rent-to-wage ratio, making the paradise islands less desirable for those who can’t afford it.
Hawaii isn't alone with its steep increase in rent costs and low hourly earnings—the likes of Nevada, California, and Florida all require over 63 hours to fulfill rent costs.
Residents of North Dakota need to work 34 hours to afford average rent
In contrast to the current national trend, states like North Dakota, West Virginia, and South Dakota offer a notably easier financial load when it comes to rent.
These states require fewer work hours to cover housing costs—34 in North Dakota, 37.8 in West Virginia, and 38 in South Dakota—each at or below the historical norm of 38 hours that marked stability from 2004 to 2017.
This lower demand for work hours to meet rent payments illustrates a more sustainable rent-to-wage ratio, positioning these states as economically advantageous.
Such affordability might make these locations attractive for those seeking to live well without the intense economic strain experienced in more costly regions. With that said, these states are not too far off what was once the country’s average work hours required to cover rent.
During the studies, the state’s median rent costs and average hourly wage are used to calculate the amount of hours needed to cover rent. Here’s a look at how many hours are needed to cover rent per state:
| State | Inflated 2024 median rent | Average hourly earnings | Hours in Avg hourly wage |
|---|---|---|---|
| Hawaii | $2,417 | $36.53 | 66.2 |
| Nevada | $1,948 | $30.08 | 64.8 |
| California | $2,493 | $38.63 | 64.5 |
| Florida | $2,033 | $32.01 | 63.5 |
| Maryland | $2,067 | $34.48 | 59.9 |
| Arizona | $1,933 | $32.38 | 59.7 |
| Colorado | $2,195 | $37.77 | 58.1 |
| New Jersey | $2,073 | $35.71 | 58.1 |
| Virginia | $1,921 | $33.33 | 57.6 |
| Georgia | $1,692 | $30.54 | 55.4 |
| Utah | $1,829 | $33.30 | 54.9 |
| New Hampshire | $1,861 | $35.03 | 53.1 |
| Delaware | $1,699 | $31.50 | 53.9 |
| Washington | $2,173 | $40.69 | 53.4 |
| New York | $1,999 | $37.52 | 53.3 |
| Massachusetts | $2,179 | $40.80 | 53.4 |
| Texas | $1,720 | $32.54 | 52.9 |
| Oregon | $1,827 | $35.24 | 51.8 |
| Alaska | $1,772 | $36.07 | 49.1 |
| Tennessee | $1,461 | $29.83 | 49.0 |
| Idaho | $1,517 | $31.45 | 48.2 |
| Connecticut | $1,813 | $37.39 | 48.5 |
| South Carolina | $1,445 | $30.41 | 47.5 |
| District of Columbia | $2,457 | $50.98 | 48.2 |
| Pennsylvania | $1,488 | $31.40 | 47.4 |
| North Carolina | $1,508 | $31.93 | 47.2 |
| Louisiana | $1,312 | $28.12 | 46.7 |
| Rhode Island | $1,672 | $35.44 | 47.2 |
| Illinois | $1,560 | $33.14 | 47.1 |
| Vermont | $1,521 | $33.46 | 45.5 |
| New Mexico | $1,273 | $27.74 | 45.9 |
| Mississippi | $1,164 | $25.99 | 44.8 |
| Maine | $1,377 | $31.24 | 44.1 |
| Michigan | $1,403 | $32.20 | 43.6 |
| Kansas | $1,300 | $29.87 | 43.5 |
| Indiana | $1,296 | $30.03 | 43.2 |
| Minnesota | $1,600 | $36.99 | 43.3 |
| Montana | $1,340 | $31.01 | 43.2 |
| Nebraska | $1,311 | $31.00 | 42.3 |
| Kentucky | $1,188 | $28.48 | 41.7 |
| Oklahoma | $1,249 | $29.96 | 41.7 |
| Alabama | $1,217 | $29.80 | 40.8 |
| Iowa | $1,188 | $28.36 | 41.9 |
| Ohio | $1,265 | $31.55 | 40.1 |
| Arkansas | $1,128 | $28.09 | 40.2 |
| Missouri | $1,272 | $31.11 | 40.9 |
| Wisconsin | $1,323 | $33.45 | 39.6 |
| Wyoming | $1,193 | $30.84 | 38.7 |
| South Dakota | $1,155 | $30.38 | 38.0 |
| West Virginia | $1,060 | $28.05 | 37.8 |
| North Dakota | $1,151 | $33.88 | 34.0 |
Cities where you need to work the most hours to pay rent
Data on the cities that require the most and least hours worked to pay rent was collected from the U.S. Census and inflated to 2024 figures. [1] U.S. Census, “Selected Housing Characteristics” https://data.census.gov/table/ACSDP1Y2022.DP04?q=rent&g=010XX00US$3100000
This data shows that the wage-to-rent ratio is unfavorable to residents of San Jose, San Francisco, and Oxnard with more than 74 working hours needed to cover rent costs.
San Jose, Sunnyvale, and Santa Clara residents need to work 89.8 hours to cover rent
San Jose, Sunnyvale, and Santa Clara is the metro area that requires the most hours to cover rent, residents will need to work 89.8 hours in order to keep their abode for another month. This figure is astounding with many workers likely to be laboring for almost two weeks just to cover their housing overheads.
This trend isn't isolated. Eight metro areas—five of which are in California—require over 70 work hours a month to manage rent costs, underscoring a growing disparity in housing affordability across major areas.
It takes 79.4 working hours to cover rent in San Francisco, Oakland, and Berkeley
Renting in the metro area of San Francisco-Oakland-Berkeley will take 79.4 working hours to cover the monthly cost of the rent.
The median rent in this area is $3,067 with an average hourly wage of just $38.63, making it one of the most expensive places to live in the U.S. when taking earnings into consideration.
This location requires local inhabitants to work 29.4 more hours than the average American.
Cities where you need to work the fewest hours to pay rent
On the other end of the spectrum, Olean, NY, stands out as the area where residents need to work the fewest hours to cover rent. Here, only 25.1 hours of work per month are necessary to meet the median rent of $943, offering the most favorable rent-to-wage ratio in the nation.
Olean residents need the fewest working hours to cover rent
The cheapest living can be enjoyed in Olean, New York in regards to rent-to-wage costs. Those residing in Olean will need to work 25.1 hours to cover rent costs, half of the average in America.
Olean is based in New York and is the largest city in Cattaraugus, the area is especially cheap when comparing it to New York in general where you need to work 53 hours to stay afloat in the rental market.
Only 27.1 monthly hours to pay rent costs in North Wilkesboro, NC and Rio Grande
Close behind are Rio Grande City-Roma, Texas, and Marinette, Wisconsin/Michigan where residents work just 27.1 hours monthly to handle their housing costs. This starkly contrasts with cities like San Jose-Sunnyvale-Santa Clara, where nearly four times as many hours are required, highlighting the extreme variability in housing affordability across different U.S. metro areas.
Methodology
Average hourly earnings for each state were collected from the Bureau of Labor Statistics (BLS) and St Louis Fed. Historical minimum wages were collected from the Department of Labor and Minimum-Wage.org.
Data on rent prices was collected from the Census and inflated to 2024 prices using CPI inflation. Data is correct as of May 2024 but is subject to change. The cost comparison in this piece assumes one person renting alone in order to create a useful comparison between hourly earnings and rent prices. It should be noted that many people, of course, rent with others in the same apartment which would make the cost per person cheaper.
Sources
- [1] U.S. Census, “Selected Housing Characteristics” https://data.census.gov/table/ACSDP1Y2022.DP04?q=rent&g=010XX00US$3100000
- [2] BLS, “Average hourly and weekly earnings” https://www.bls.gov/charts/state-employment-and-unemployment/average-hourly-earnings-and-weekly-hours-and-earnings-by-state.htm
- [3] Federal Reserve, “Average Hourly Earnings of All Employees” https://fred.stlouisfed.org/series/CES0500000003
- [4] DOL, “Changes in Basic Minimum Wages” https://www.dol.gov/agencies/whd/state/minimum-wage/history
