Current Housing Market Overview

The average minimum wage worker in the U.S. faces a significant challenge in securing affordable housing. Recent data indicates that such workers need to undertake more than double the typical full-time hours to afford the median rent for an apartment.

As highlighted by Redfin, it is generally advised that individuals should allocate no more than 30% of their income towards housing costs. Unfortunately, this guideline has become increasingly difficult to adhere to given the ongoing rise in rental prices.

Median Apartment Prices

As of now, the median monthly rent for an apartment across the United States stands at $1,599. While the federal minimum wage has remained unchanged at $7.25 since 2009, many states have set their own higher minimum wages, bringing the average national minimum to approximately $11.59 per hour for 2025. Despite this increase, for those earning the minimum wage, it would require an estimated 106 hours of work per week to afford the median rent.

Demographics of Minimum Wage Workers

The Bureau of Labor Statistics reports that the demographic of minimum wage earners includes a significant number of young individuals, predominantly employed in the service sector. Additionally, a larger proportion of these workers are women.

Expert Insights on Affordability

Daryl Fairweather, Chief Economist at Redfin, states, “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. 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.”

Rental vs. Homeownership Costs in 2025

Whether renting or buying in 2025, the burden on American workers remains heavy. The 2025 Rental Affordability Report from ATTOM underscores that both options can consume an alarming 25 to 60% of wages, with homeownership being more economical in many regions.

Notably, in about 60% of the 341 markets analyzed, owning a single-family home is less expensive than renting a comparable property. The following locations were identified as the most affordable for renters:

• Black Hawk County (Waterloo, Iowa)
• Wayne County (Detroit, Michigan)
• Genesee County (Flint, Michigan)
• Jefferson County (Birmingham, Alabama)
• Hinds County (Jackson, Mississippi)