To afford the $1,599 median-priced apartment, the ordinary minimum-wage earner in the U.S. would need to put in 106 hours each week, according to a recent Redfin report. That’s astoundingly higher than the average 40-hour work week. And according to Daryl Fairweather, Chief Economist at Redfin. “It’s virtually impossible for a minimum-wage worker to afford the typical apartment on their own.”
The analysis of median asking rentals for the three months ending January 31, 2025, and 2024 yearly wage data served as the foundation for Redfin’s research. If 30% of a minimum wage renter’s income is spent on rent, we consider the flat to be affordable.
Although it has become more difficult to adhere to as housing costs have skyrocketed, it is generally advised in personal finance that people should spend no more than 30% of their income on housing. To make ends meet, many minimum-wage workers spend more than 30% of their income. Additionally, a large number of them rent residences that are below average.
Minimum-Wage Workers Finding More Rental Affordability
Since 2009, the federal minimum wage of $7.25 has remained unchanged. However, the Economic Policy Institute reports that throughout the past ten years, the effective minimum wage has gone up in 30 states. It should be noted that Redfin assumed a nationwide effective minimum wage of $11.59 for 2025 in this analysis. According to the U.S. Bureau of Labor Statistics, young persons who work in the service sector and earn less than the minimum wage are more likely to be women than men.
The average minimum-wage worker would have needed to put in 125 hours per week—19 more hours than they do now—to afford the average apartment when the median asking rent peaked in August 2022 at $1,704. The median asking rent in the U.S. is currently 6.2% ($105) below its record high and isn’t increasing nearly as quickly as it did during the pandemic. However, compared to pre-pandemic levels (January 2020), it is 20.4% ($271) greater.
Which U.S. States Boast the Least & Most Hours Necessary for Minimum-Wage Workers?
These states are at the top of the list because their minimum salaries are among the lowest in the country, and their rents are not among the lowest. The typical asking rent in New Hampshire, for instance, is 32% higher than the $1,599 national median.
In order to afford the $1,085 median-priced condo in South Dakota, an individual making the minimum salary of $11.20 would need to put in 75 hours each week. Of all the states Redfin examined, that is the one with the fewest hours. At 76 hours, Missouri and Nebraska follow.
All of these states have asking rents that are below average and minimum salaries that are not among the lowest in the nation. For instance, the median asking rent in South Dakota is 32.1% less than the median rent nationwide.
State-Level Summary: Minimum Wage Rental Affordability
Top 10 States w/ the Least Hours Needed to Afford the Median-Priced Unit
| State | Weekly hours minimum-wage worker needs to work to afford median-priced apartment on their own | YoY change in weekly hours minimum-wage worker needs to work to afford median-priced apartment on their own | Median asking rent | YoY change in median asking rent | Effective minimum wage |
|---|---|---|---|---|---|
| South Dakota | 75 | 4 | $1,085 | 5.2% | $11.20 |
| Missouri | 76 | 2 | $1,209 | 2.0% | $12.30 |
| Nebraska | 76 | 3 | $1,190 | 4.4% | $12.00 |
| Arizona | 77 | -2 | $1,430 | -2.9% | $14.35 |
| Arkansas | 78 | 5 | $1,115 | 7.2% | $11.00 |
| Maryland | 87 | 7 | $1,686 | 8.8% | $15.00 |
| Colorado | 89 | -2 | $1,668 | -2.6% | $14.42 |
| Oregon | 90 | -7 | $1,725 | -7.1% | $14.70 |
| Washington | 93 | 4 | $1,970 | 4.0% | $16.28 |
| Illinois | 95 | 5 | $1,720 | 5.2% | $14.00 |
Assuming they were renting the median-priced apartment in the U.S., the ordinary minimum-wage worker would need to work 32 hours a week just to pay the rent, leaving no money for additional expenses. To afford the median-priced apartment in New Hampshire, a person making the $7.25 minimum wage would need to put in 224 hours per week. Of all the states Redfin examined, that state had the most hours. Idaho (165 hours) and Pennsylvania (183 hours) are next.
Top 10 States w/ the Most Hours Needed to Afford the Median-Priced Unit
| State | Weekly hours minimum-wage worker needs to work to afford median-priced apartment on their own | YoY change in weekly hours minimum-wage worker needs to work to afford median-priced apartment on their own | Median asking rent | YoY change in median asking rent | Effective minimum wage |
|---|---|---|---|---|---|
| New Hampshire | 224 | -13 | $2,110 | -5.6% | $7.25 |
| Pennsylvania | 183 | 0 | $1,719 | 0.0% | $7.25 |
| Idaho | 165 | 5 | $1,550 | 3.3% | $7.25 |
| Georgia | 160 | 3 | $1,505 | 1.7% | $7.25 |
| Wisconsin | 159 | 13 | $1,496 | 8.7% | $7.25 |
| Utah | 156 | -8 | $1,473 | -5.0% | $7.25 |
| North Carolina | 150 | -1 | $1,409 | -0.6% | $7.25 |
| Texas | 143 | -7 | $1,347 | -4.7% | $7.25 |
| Massachusetts | 135 | 8 | $2,633 | 6.0% | $15.00 |
| Indiana | 135 | 8 | $1,276 | 6.3% | $7.25 |
Note: The tables above include the 41 U.S. states (plus Washington, D.C.) for which there is sufficient data. Wage data is as of 2024 and asking rent data is as of the three months ending Jan. 31, 2025.
To read the full report, including more data, charts, and methodology, click here.
