Report: Most renters can’t afford their rent

Most U.S. renters can’t afford the monthly rent on a median-priced apartment, a report has found.

The typical renter household earns about $54,712 a year, 17.3 percent less than is needed to pay the median monthly rental rate of $1,653, according to a study released June 24 by Redfin, a Seattle-based real estate brokerage.

Currently, only 39 percent of the country’s renters have a large enough annual income – at least $66,120 – to make that payment.

To close that gap, the typical renter would have earn $11,408 more than they’re earning now. That’s the highest gap since October 2022 and 23 percent higher than May 2019, one year before the pandemic hit.

The study also found that the typical Riverside renter earns 30.8 percent less than needed to afford a median-price apartment, the fifth-largest affordability gap nationwide. New York (43.5 percent), Miami (42.2 percent), Boston (38.7 percent) and Los Angeles (36.1 percent) made up the top four, according to Redfin.

Redfin’s report is based on data gathered in 33 major metropolitan cities during March, April and May of this year.