Written by: Internal Analysis & Opinion Writers
The COVID-19 pandemic may have faded from headlines, but its economic aftershocks continue to reverberate across the U.S. housing market. One of the most persistent effects is the growing disparity between rising rent prices and stagnant wage growth, a trend that is straining affordability for renters nationwide.
Since April 2020, the monthly cost of renting a typical apartment in the U.S. has climbed 28.7%, bringing the average rent to \$1,858. Single-family rentals have seen an even sharper increase, with costs rising 42.9% to a national average of \$2,256 per month.
Meanwhile, household income hasn’t kept pace. Over the same period, median household income has grown just 22.5%, now sitting at approximately \$82,000. That lag between rent growth and earnings is placing increased pressure on renters, especially those hoping to save for homeownership or manage other essential expenses.
“Housing costs have surged since pre-pandemic, with rents growing quite a bit faster than wages,” said Orphe Divounguy, senior economist at Zillow. “This often leaves little room for other expenses, making it particularly difficult for those hoping to save for a downpayment on a future home. High upfront costs are often overlooked, which can keep renters in their current homes.”
Zillow’s latest report shows that the typical asking rent—including both multifamily and single-family units—was \$2,024 as of April 2025. That figure represents a 0.5% increase from the previous month and a 3.4% jump from April 2024, indicating that rent growth, while slower than in peak inflation years, remains steady.
The affordability picture becomes even starker in many of the nation’s largest metropolitan areas. Zillow analyzed rent burdens in the 50 largest U.S. metro markets, defining “affordable rent” as not exceeding 30% of household income. In eight of those metros, renters now need to earn over \$100,000 per year to stay within that threshold.
Cities crossing the six-figure income requirement include New York City, Boston, Miami, and five high-cost California markets: San Jose, San Francisco, San Diego, Los Angeles, and Riverside. In New York City, the typical renter must devote 54.6% of their income to housing—nearly double the affordability benchmark.
Other cities where rent is especially burdensome include Miami at 40.4% of income, Los Angeles at 36.4%, Tampa at 33.5%, San Diego at 33.2%, Riverside at 32.8%, and Boston at 32.5%. These numbers suggest that even middle-income renters in these areas are being squeezed by soaring rents and stagnant earnings.
The report also points out that monthly rent is only part of the financial burden. High upfront costs—such as security deposits, advance rent, and broker fees—make moving even more expensive. In places like New York and Boston, renters may need to come up with several months’ rent in advance just to secure a lease, compounding the affordability challenge.
In contrast, several metro areas offer more breathing room for renters. Cities like Austin, Minneapolis, Raleigh, St. Louis, and Salt Lake City all have rent-to-income ratios below 21%. These markets have benefitted from more balanced rent growth, relative to income gains, and tend to attract residents seeking lower costs of living.
While rental market conditions vary by region, the national trend remains clear: rent increases are outpacing wages, and the affordability gap is widening. For policymakers, housing advocates, and industry leaders, the data underscores an urgent need to address housing supply, rental assistance programs, and wage equity to prevent further displacement of lower- and middle-income renters.
As rent burdens continue to mount in high-cost metros, the dream of homeownership is drifting further out of reach for many. With inflationary pressures still lingering and mortgage rates remaining elevated, renters are caught in a tightening vise—unable to save, relocate, or buy.
Without meaningful policy interventions or wage growth that matches housing inflation, many Americans will find themselves increasingly priced out of both the rental and homeownership markets. As the gap widens, so does the urgency for systemic solutions.
