Rent prices across major U.S. cities have shown modest signs of relief, yet housing affordability continues to pose serious challenges—especially for low-income renters.
Data from a recent analysis by Realtor.com shows that median asking rents for studio through two-bedroom apartments in the nation’s 50 largest metro areas declined by about 1% compared to last year, landing at $1,693 in November. While this signals ongoing rent softening through late 2025, current prices are still more than 17% higher than pre-pandemic levels in 2019.
Among unit types, studio apartments experienced the smallest annual decrease—just under half a percent—suggesting demand for smaller, more affordable units may be stabilizing or even increasing.
When affordability is measured using the standard guideline that rent should not exceed 30% of household income, only a handful of large metro areas are considered affordable for households with two earners both making the local minimum wage. These metros include Buffalo and Rochester in New York, as well as St. Louis, Phoenix, and Kansas City.
Despite the difficulties, economists see gradual improvement ahead. According to Danielle Hale, chief economist at Realtor.com, upcoming minimum wage increases in select cities could allow more renters to afford typical apartments in 2026 without relying on overtime—particularly in markets where wages are rising faster than rents.
The federal minimum wage remains unchanged at $7.25 per hour, a level it has held since 2009. While 30 states and Washington, D.C., have enacted higher minimum wages, several states still default to the federal rate, including Alabama, Georgia, Louisiana, Mississippi, South Carolina, Tennessee, and Wyoming.
On a more localized level, wage policies vary widely. The Economic Policy Institute reports that dozens of cities and counties have adopted minimum wages that exceed their respective state standards, helping narrow the gap between earnings and housing costs.
Markets where wages remain tied to the federal minimum continue to face the steepest affordability barriers. However, even in those areas, competitive labor markets often push actual wages above the legal minimum.
Looking ahead to 2026, some metro areas are expected to see the most meaningful affordability gains. Detroit stands out, with its minimum wage scheduled to jump from $10.56 to $13.73 per hour. Miami and Tampa are also poised for improvement as their local minimum wages rise from $13 to $15 per hour.
These increases are projected to significantly reduce the number of hours a minimum-wage worker must work each week to afford a median-priced rental—by roughly 12 hours in Detroit, nine hours in Miami, and seven hours in Tampa.