Only 39% of renters make enough money to afford a median-priced apartment in the United States. Typical renters earn about $54,700 per year, which falls about $11,400 short of the income they need to afford median monthly rent of $1,653, according to a report from Redfin.

Although income needed fell last year to as low as $63,920, it is now rising again as rents rebound and stands at $66,120, the highest level since October 2022, according to Redfin. Affordability challenges are particularly pronounced in New York, where the typical renter earns an estimated $67,358 per year but needs to earn $119,120 to afford a median-priced apartment, a 43.5% gap in affordability. Following New York are Miami (42.2%), Boston ($38.7%), Los Angeles (36.1%) and Riverside, California (30.8%).

On the other end of the spectrum, typical renters in Austin, Texas, earn 16.8% more than the $62,360 they need to afford a median-priced apartment. Only four other major metro areas enjoyed a dynamic where renters earn enough to afford the typical apartment: Houston; Phoenix; Washington, D.C; and Dallas. In these markets, rents have been falling year over year, with asking rents in Austin falling 7.2%. Washington is an outlier with rents increasing 11.1% but still remaining affordable for typical D.C. renters.