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Lowest-Wage Earners Starting to Benefit From Falling Rents But Affordability Challenges Remain, Realtor.com Says
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Lowest-Wage Earners Starting to Benefit From Falling Rents But Affordability Challenges Remain, Realtor.com Says
Mar 10, 2026 10:39 PM

02:58 PM EST, 12/16/2025 (MT Newswires) -- Rents in the US continued to move lower in November, helping improve affordability for the lowest-wage earners, though challenges remain, News Corp's ( NWSA ) Realtor.com said in a report Tuesday.

The median asking rent across the top 50 metropolitan areas fell 1% year over year to $1,693 last month. Rents continued to drop across all unit sizes on an annual basis, marking the 28th to 30th straight month of year-over-year declines for various bedroom units, according to the property platform.

"Two years of sustained rent declines have offered modest financial relief to renters nationwide, and as we approach the new year state-level minimum wage increases will help to improve affordability for the most burdened households," Realtor Chief Economist Danielle Hale said.

However, rents remain about 17% higher than in November 2019, and only five of the top 50 metros are affordable without requiring overtime. This assumes a two-earner household where both individuals earn the metro's minimum wage and adhere to the 30% rent-to-income rule, Realtor said.

The five metros are Buffalo-Cheektowaga, and Rochester in New York; St. Louis, Missouri-Illinois; Phoenix-Mesa-Chandler, Arizona; and Kansas City, Missouri-Kansas, according to the report.

"While our analysis is based on statutory minimum wages, the reality is that market forces often push starting pay higher, even in states defaulting to the $7.25 federal minimum," Realtor Senior Economist Joel Berner said.

"In several high-cost-of-living areas, however, even a higher market-driven wage or a state-mandated increase, such as the one scheduled for San Jose, does not close the affordability gap," Berner added. "It's a clear signal that housing costs continue to pose a massive hurdle for those at the bottom of the pay scale."

Detroit, and Jacksonville, Florida, are set to join the list of affordable metros next year. Florida metros, especially, are expected to see the "most significant" decline in required working hours, according to the report.

"While the challenge remains immense, particularly in high-cost areas, the number of metros where two minimum wage earners can afford a typical rental without working overtime will grow in 2026, a positive sign," Hale said. "In other markets, especially in states with scheduled minimum wage hikes, the amount of overtime hours needed to afford a rental will decline, potentially freeing that income for other budget priorities."

Last week, Realtor said affordability in the US housing market is expected to improve next year amid lower mortgage rates and muted price growth.

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