The rate at which rental prices have increased across the nation has began to slow, but the annual income renters need to make to comfortably afford their rental has seen a significant increase.
In April, rent prices grew by 0.6% month over month, or 3.6% from last year, slower than the 0.7% month-over-month average seen this time of year prior to the pandemic, according to Zillow’s April 2024 Rental Market Report. This has resulted in a typical rent price of $1,997 nationwide.
It is recommended that renters spend no more than 30% of their annual income on rent. So, at that rental price, a renter needs to make $79,889 annually to comfortably afford the cost — a 3.7% increase from the $58,692 annual salary needed to afford the typical national rent five years ago, according to the report.
Currently, the median United States household would spend 29.2% of their income on a new rental in April, according to the report. While this is still lower than the recommended 30%, it is an increase from 29.1% in March and from 27.6% before the pandemic.
In the New York metropolitan area — which the report said is one of the least affordable metropolitan areas for renters — households spend about 39.8% of their annual income on rent, a 4.2% increase from 2023. At that rate, renters here must make an annual income of $131,411 to afford the median monthly rent of about $3,285.
And, in New Jersey, the median monthly rent is $2,500, meaning renters need to make about $100,000 annually to afford it. This is a 4.38% increase from this time last year, when renters needed to make $95,800 annually to afford the median monthly rent of $2,395.
Here’s a look at the annual income needed to comfortably afford the median rent in the country’s 50 largest metropolitan areas:
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San Jose, Calif. – $132,819
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New York City – $131, 411
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Boston – $123,269
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San Francisco – $121,595
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San Diego – $119,559
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Los Angeles – $116,795
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Miami – $111,633
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Riverside, Calif. – $101,031
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Washington, D.C, – $93,570
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Sacramento, Calif. – $91,334
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Seattle – $88,422
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Tampa, Fla. – $83,889
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Chicago – $82,889
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Orlando, Fla. – $81,947
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Providence – $81,896
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Denver – $81,848
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Atlanta – $77,133
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Nashville, Tenn. – $76,343
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Phoenix – $75,478
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Philadelphia – $74,292
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Portland, Ore. – $73,191
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Baltimore – $72,436
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Hartford, Conn. – $72,196
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Las Vegas – $71,653
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Charlotte, N.C. – $71,428
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Austin, Tex. – $71,282
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Dallas – $70,848
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Raleigh, N.C. – $70,835
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Jacksonville, Fla. – $69,746
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Virginia Beach, Va. – $68,262
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Salt Lake City – $68,262
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Houston – $67,700
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Minneapolis, Minn. – $66,956
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New Orleans – $66,572
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Richmond, Va. – $65,845
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Indianapolis – $62,692
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Columbus, Ohio – $60,337
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Cincinnati – $59,997
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San Antonio, Tex. – $59,088
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Memphis, Tenn. – $57,921
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Kansas City, Mo. – $57,811
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Detroit – $57,447
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Pittsburgh – $56,764
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Birmingham, Ala. – $56,664
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Louisville, Ky. – $56,104
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St. Louis, Mo. – $55,682
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Cleveland – $55,629
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Milwaukee, Wis. – $54,567
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Oklahoma City – $53,713
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Buffalo, N.Y. – $53,664
Maddie McGay is the real estate reporter for NorthJersey.com and The Record, covering all things worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay, on X @maddiemcgayy, and sign up for her North Jersey Living newsletter. Do you have a tip, trend or terrific house she should know about? Email her at MMcGay@gannett.
This article originally appeared on NorthJersey.com: How much are NJ rentals? How much do I need to make to rent?
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