In 2008, it may seem like an ancient memory but the average rent in America was only $824 per person, per month. This figure is now over $1300 and it’s higher in metropolitan areas like New York City or Los Angeles.
Rents jumped by nearly 6 percent between 2022-2025, and Americans now spend a larger percentage of their income to pay for a roof.
It is a longstanding recommendation to not spend more than one-third of your income on housing. Rent prices have consistently risen faster than wages in the United States. Many Americans now spend far more.
Self Financial’s recent analysis, which analyzed housing data from US Census, Apartment List and Bureau of Labor Statistics as well as the Federal Reserve paints an ominous picture of the burden. It translates it into more tangible metrics: the number of hours of work.
In order to pay their rent, Americans need to spend an average of 38.3 working hours per month. This means that the entire average week of work is taken up by one single expense.
The national average masks wide differences across the nation.
State-by-state differences: From 27 to 60 hours
Rent can be paid by working a different number of hours depending on your location.
Self-Financial analysis shows that Vermonters face the greatest challenge in meeting their monthly average rental costs. They need to work the most hours, at 60.2 per month, to do so.
South Dakotans, on the other hand, only need 27,6 hours per week to pay their rent. They are ranked at the bottom of the country.
It is not surprising that the problem is worst in large cities. Residents of New York City for example, have to work an incredible 90.2 hours per month just to pay rent — more than two weeks’ worth.
The five states in the US where you need the most work to pay the monthly average rent are:
- Vermont: 60.2 hours
- Hawaii 59.9 Hours
- California 52 hours
- New Jersey : 50.4 hours
- Maryland: 50,3 hours
Here are five US States where you need the least amount of time:
- Maine 32 hours
- North Dakota 32 hours
- Alabama: 31.44 hours
- Arkansas: 31.11 hours
- South Dakota : 27.5 hours
Is there a glimmer? The apartment boom brings some relief
There is some hope in sight.
According to Redfin, as of May the US median asking rent actually decreased by about 1% over the past year.
Redfin’s economists attribute this small respite to a recent boom in the apartment building industry, which has reached a level not seen for 50 years.
Sheharyar Bukhari, senior economist at Redfin, explained that despite the strong demand for rental properties, supply is not keeping up with it.
Renters can negotiate with landlords to lower rents if many units have been vacant for several months.
Renting or buying? The cheaper option between two costly options
Renting is still a cheaper alternative to buying in the US housing market.
The combination of high mortgage rates (nearing 7%) and home prices 55% higher at the start of 2020 than the previous year, according to the Case-Shiller US National Home Price Index, has made homeownership unattainable for most.
Austin, Texas is a good example. Andrew Vallejo, an Austin realtor recently said to Fortune that many people are discovering it is cheaper to rent rather than purchase.
Renting the same house for only $1,900 per month is cheaper than buying a house with a mortgage of $3,200. Renting is cheaper than buying unless the purchaser has enough money to pay a large down payment.
The housing market is a challenging one for American families.
As new information becomes available, this post may change.
