02:48 PM EDT, 06/24/2024 (MT Newswires) -- Only 39% of US-based renters earned enough to afford the median-priced apartment in May as asking prices sat just $47 below the all-time record, according to a report published Monday by Redfin (RDFN).

The typical renter household earned $54,712 per year as of May, which was more than 17% below the $66,120 required to afford monthly rent. Asking rents averaged $1,653 last month, the digital real estate brokerage said.

Redfin considers rent affordable if renters spend no more on it than 30% of their income.

The income renters needed to afford the typical apartment was at the highest level since October 2022 last month. Asking rents have pushed higher in recent months after a brief reprieve earlier in the pandemic when a surge in multifamily construction increased supply.

In May, rents were up just 0.8% year over year, though they're nearly 23% above May 2019 before the pandemic upended the industry. A backlog of new units continues to hit the market every month, which is keeping a lid on how much prices can grow even as demand remains strong and many homebuyers sidelined, according to Redfin.

"Rents are growing at a snail's pace compared to the rapid increases we saw during the pandemic, and are unlikely to soar again anytime soon," Redfin Senior Economist Sheharyar Bokhari said. "As a result, wage growth should continue to outpace rent growth in the coming months, as it has been doing since 2022."

As wages catch up to rents, the affordability gap for renters will be narrowed, though many renters will still struggle, according to Bokhari.

The disparity was largest in expensive rental markets New York and Miami, the report showed. The typical earners in New York and Miami would have made 44% and 42% less, respectively, than the income needed to afford the average apartment last month. New York rents rose 9.2% year over year in May, one of the biggest increases in the US, Redfin said.

Price: 6.45, Change: -0.35, Percent Change: -5.15