It may seem like a distant memory, but just 17 years ago, in 2008, the median rent for Americans was a modest $824 per month. Today, that figure has soared to over $1,300, and in major metropolitan hubs like New York City and Los Angeles, it dwarfs even that national average.
This relentless climb, which saw rents jump by nearly 6% between 2022 and 2025 alone, means that Americans are now dedicating a much larger portion of their hard-earned income just to keep a roof over their heads.
The long-standing financial recommendation is to spend no more than a third of one’s income on housing. However, with rent prices consistently rising faster than wage growth across the United States, a significant number of Americans are now shelling out far more than that.
A recent analysis by Self Financial, which synthesized housing data from the US Census, Apartment List, the Bureau of Labor Statistics, and the Federal Reserve, paints a stark picture of this burden, translating it into a more tangible metric: hours of work.
On average, Americans now need to work 38.3 hours just to cover their monthly rent. In practical terms, that means the entirety of an average work week is consumed by this single, essential expense.
This national average, however, masks a wide disparity across the country.
The state-by-state divide: from 27 hours to over 60
The number of work hours required to pay for rent varies dramatically depending on where you live.
Residents of Vermont face the steepest challenge, needing to work 60.2 hours per month to meet their average monthly rental costs, the highest of any state, according to the Self Financial analysis.
At the other end of the spectrum, those living in South Dakota need just 27.6 hours to cover their rent, placing them at the lowest spot in the nation.
Unsurprisingly, the situation is most acute in major cities; residents of New York City, for instance, need to work a staggering 90.2 hours each month to pay their rent—more than two full work weeks.
Here are the five US states where the most hours of work are required to cover the average monthly rent:
- Vermont: 60.2 hours
- Hawaii: 59.9 hours
- California: 52.4 hours
- New Jersey: 50.4 hours
- Maryland: 50.3 hours
And here are the five US states where the fewest hours are required:
- Maine: 32.3 hours
- North Dakota: 32.2 hours
- Alabama: 31.4 hours
- Arkansas: 31.1 hours
- South Dakota: 27.6 hours
A glimmer of hope? Apartment boom offers some relief
While this may paint a grim outlook for rental housing in the US, there is a small glimmer of hope on the horizon.
As of May, the median US asking rent had actually dropped by about 1% year-over-year, according to real estate brokerage Redfin.
The reason for this slight reprieve, Redfin economists say, is a boom in apartment construction, which is currently hovering near a 50-year high.
“Even though renter demand is strong, it’s not keeping pace with supply,” explained Sheharyar Bokhari, a Redfin senior economist.
Many units are sitting vacant for months, which means renters have power to negotiate concessions and landlords have less leeway to keep rents high.
Renting vs. buying: the cheaper of two expensive options
Despite the high cost of renting, it remains a significantly cheaper option than buying a home in the current US market.
A combination of sky-high mortgage rates, which are nearing 7%, and home prices that are a staggering 55% higher than they were at the beginning of 2020 (according to the Case-Shiller US National Home Price Index), has put homeownership out of reach for many.
The situation in Austin, Texas, provides a clear example. “Many people in Austin are finding that it’s a lot cheaper to rent than buy,” Austin real-estate agent Andrew Vallejo recently told Fortune.
You could buy a home and have a monthly mortgage payment of $3,200, but the same home will rent for $1,900. Unless the buyer has a good amount of money for a down payment, renting is way less expensive.
This stark reality underscores the ongoing financial pressures facing American households as they navigate the challenging housing market.
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