According to Business Insider, the demand for rental apartments is at its highest since the 1960s. There are a few reasons for why that is, one being that Millennials, the largest generation since baby boomers, are desperate to buy homes.
Another reason could be that many Americans, especially poorer people, “haven’t felt the effects of the economic recovery, and may not be able to rustle up the funds for a down payment,” Business Insider reports. Many are struggling to find homes.
Regardless, it’s getting harder and harder for average Americans to afford a 2-bedroom rental in the U.S. Ideally, you don’t want to be spending more than a third of your monthly income on rent. But sadly, that’s not the reality.
In reality, the truth is a little bit more stressful and upsetting to your bank account, unless you’re a plastic surgeon living in North Dakota.
According to thrillist.com, rents are rising more and more in cities across the states, and are expected to climb by 1.7% nationally this year.
Thrillist.com notes that there are about 80 million hourly workers over the age of 16 in the United States as of 2015.
It’s worth taking a look at just how much hourly employees need to earn to be able to rent a two-bedroom apartment without spending a third of their income.
The National Low Income Housing Coalition compiled a list of states demonstrating the required hourly rate. Some may shock you while others might seem to be expected.
According to Thrillist, the statistics may vary per real estate market, but the dimensions of what labor entails don’t. Here are a few examples we have for you.
If you want to move to California and plan on renting a two-bedroom place, you best hope you’re at least making $28.59 per hour.
Maybe reconsider moving to Alabama, where you need to earn almost half that rate. In order to get a 2-bedroom, you’d have to make $13.93 per hour.
New York has a reputation of having expensive apartments that tend to be the size of your current kitchen. You’d need to make about $26.69 for a two-bedroom.
Some of the lowest hourly wages you’d need to rent a two-bedroom place would be in West Virginia. $13.17 is what you would be required to make.
Another state that doesn’t require a large amount of hourly rate is Iowa. You’d need to make $14.03 per hour to afford a place with two-bedrooms!
Hawaii is amazing for vacations, but after seeing that you’d have to make $34.22 an hour to afford the rent there, we’re good with just vacationing there for a week or so.
The State of Maryland is also pretty up there with New York City. You’d have to make $26.53 per hour in order to have the opportunity to rent a 2-bedroom.
Thrillist writes that according to the NLIHC’s study, the average wage needed to rent a two-bedroom home in the States is $20.30/hour
There are slight gains with the average minimum wage around the country. In 2014, Obama signed an order mandating businesses pay their employees at least $10.10/hour
But even with this slight raise, it’s nowhere near the average hourly rate required for Americans to be able to afford to rent a two-bedroom home.