Redfin Report: A Minimum-Wage Worker Would Have to Work 106 Hours a Week to Afford the Typical U.S. Apartment

February 24, 2025 at 08:00 AM EST

That’s down from a peak of 125 hours when rents hit a record high in 2022

(NASDAQ: RDFN) —The average minimum-wage earner in the U.S. would have to work 106 hours per week to afford the $1,599 median-priced apartment. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Redfin’s report is based on an analysis of median asking rents as of the three months ending Jan. 31, 2025, and 2024 annual wage data. We define an apartment as affordable if a renter making minimum wage spends 30% of their income on rent.

A rule of thumb in personal finance is that people should spend no more than 30% of their earnings on housing, though this rule has become harder to follow as housing costs have soared. Many minimum-wage workers are spending over 30% to make ends meet. Many are also living in apartments with below-average rents.

“It’s obviously not realistic for most people to clock into their job for over 100 hours a week, but this thought experiment shines light on the massive rental affordability gap between the average American and our country’s lowest earners,” said Redfin Chief Economist Daryl Fairweather. “It’s virtually impossible for a minimum-wage worker to afford the typical apartment on their own, which is why many have to find ways to reduce their housing expenses, like living with roommates or family members, applying for a spot in public housing, or using Housing Choice Vouchers.”

The $7.25 federal minimum wage hasn’t increased since 2009. But the effective minimum wage has increased in 30 states over the last decade, according to the Economic Policy Institute. Note that for this report, Redfin used a national effective minimum wage of $11.59 for 2025. Workers earning less than minimum wage tend to be young people, often in the service industry, and women make up a higher percentage of these workers than men, according to the U.S. Bureau of Labor Statistics.

Renting Has Become a Little More Affordable for Minimum-Wage Workers…But Not Much

When the median asking rent peaked in August 2022 at $1,704, the average minimum-wage earner would’ve had to work 125 hours a week to afford the typical apartment—19 more hours than they would now.

The median U.S. asking rent isn’t growing nearly as fast as it was during the pandemic, and is currently 6.2% ($105) below its record high. Still, it’s 20.4% ($271) higher than pre-pandemic (January 2020) levels.

Today, it would take the average minimum-wage earner 32 hours of work per week just to cover the cost of rent alone, with no money left over for other expenses, assuming they were renting the median-priced U.S. apartment.

New Hampshire’s Minimum-Wage Workers Have to Work the Most Hours to Afford the Typical Apartment

In New Hampshire, someone earning the $7.25 minimum wage would have to work a 224-hour week to afford the $2,110 median-priced apartment. That’s the most hours of any state Redfin analyzed. It’s followed by Pennsylvania (183 hours) and Idaho (165 hours).

These states top the list because they have among the lowest minimum wages in the nation, and do not have among the lowest rents. For example, New Hampshire’s median asking rent is 32% above the national median of $1,599.

South Dakota’s Minimum-Wage Workers Have to Work the Fewest Hours to Afford the Typical Apartment

In South Dakota, someone earning the $11.20 minimum wage would have to work a 75-hour week to afford the $1,085 median-priced apartment. That’s the fewest hours of any state Redfin analyzed. Missouri and Nebraska are next, both at 76 hours.

These states all have below-average asking rents, and minimum wages that are not among the lowest in the country. South Dakota’s median asking rent, for example, is 32.1% below the national median rent.

To view the full report, please visit: https://www.redfin.com/news/minimum-wage-rent-affordability

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250224469191/en/

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Redfin Report: A Minimum-Wage Worker Would Have to Work 106 Hours a Week to Afford the Typical U.S. Apartment

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