U.S. median rent surges 57.8% since 2008 now 33% of household budgets

Americans now spend an entire week’s worth of pay on rent each month, with some cities requiring two weeks of income to cover housing costs. Median U.S. rent has surged from $824 in 2008 to over $1,300 in 2025, outpacing wage growth and pushing housing expenses to 33% of average monthly household budgets in 2023, according to the Bureau of Labor Statistics [2]. A Self Financial analysis reveals that, on average, Americans work 38.3 hours monthly to afford rent—equivalent to a typical workweek. In high-cost states like Vermont and Hawaii, this jumps to over 59 hours, while South Dakota residents spend just 27.6 hours. New York City residents require 90.2 hours, highlighting regional disparities in affordability [1].

The affordability crisis disproportionately impacts lower-income households, with nearly half of renter households earning below the median income spending over 50% of their earnings on housing. This trend is compounded by stagnant wages and inflation, which have driven rent increases faster than income growth. For example, average monthly expenses rose to $6,440 in 2023 from $6,081 in 2022, while after-tax income grew only modestly to $87,869 [2]. High-income households also face pressure, with Denver residents earning $164,000 annually needing substantial portions of their income to maintain middle-class lifestyles [4].

Despite these challenges, a modest glimmer of hope exists. Median U.S. asking rent declined 1% year-over-year by May 2025, according to Redfin, as apartment construction nears a 50-year high. “Renters have more leverage,” said Redfin economist Sheharyar Bokhari, noting that many units remain vacant for months, allowing tenants to negotiate concessions [1]. However, buying a home remains unaffordable for many due to 7% mortgage rates and a 55% rise in home prices since 2020. In Austin, Texas, for instance, renting a $1,900 property is cheaper than a $3,200 mortgage, despite stagnant wages [1].

Analysts warn that without policy interventions—such as rent controls or increased housing supply—the crisis will persist, particularly in urban areas. The BLS data underscores a narrowing gap between income and expenses, with 65% of one-person households spending more than their after-tax income in 2023 [2]. Policymakers and industry experts increasingly advocate for subsidies, housing development incentives, and regulations to curb predatory practices.

Sources:

[1] [title1: Americans spend an entire week’s worth of pay on rent every month—and in some cities, a full two weeks of income is just going to housing] [url1: https://fortune.com/2025/07/25/us-median-rent-vs-wages/]

[2] [title2: American Households' Average Monthly Expenses] [url2: https://www.fool.com/money/research/average-monthly-expenses/]

[3] [title3: Housing Is Getting Further Out of Reach of Lowest-Income Earners] [url3: https://www.homes.com/news/housing-is-getting-further-out-of-reach-of-lowest-income-earners/298436772/]

[4] [title4: A Week in Denver on a $164,000 Household Income] [url4: https://www.refinery29.com/en-us/editor-denver-164k-household-money-diary]