Affordable Housing Remains Elusive as Wages Fail to Keep Pace

New report reveals how much hourly pay is needed to afford rental housing across the U.S.

Apr. 10, 2026 at 6:25pm

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A minimalist illustration using bold geometric shapes and primary colors to conceptually represent the growing disconnect between housing costs and wages in the United States.As housing costs continue to outpace wages, the struggle to find affordable homes becomes an increasingly daunting challenge for many Americans.Chicago Today

A new report from the National Low Income Housing Coalition (NLIHC) sheds light on the growing affordability crisis in the U.S. housing market. The study found that in no state, metropolitan area, or county can a full-time minimum-wage worker afford a modest two-bedroom rental home, and these workers cannot afford modest one-bedroom apartments in 91% of U.S. counties. The report highlights the most expensive states for housing, including Hawaii, California, Massachusetts, and New York, where residents would need to work multiple full-time jobs at minimum wage to afford a two-bedroom rental.

Why it matters

The findings underscore the widening gap between stagnant wages and skyrocketing housing costs, making it increasingly difficult for low- and middle-income Americans to find affordable places to live. This crisis has significant implications for economic mobility, community stability, and overall quality of life for millions of people across the country.

The details

The report reveals that the national housing wage is $25.82 per hour for a modest two-bedroom rental home and $21.25 per hour for a modest one-bedroom rental. In Hawaii, the average wage needed to rent a two-bedroom apartment is $40.63 per hour, requiring a person to work four full-time minimum-wage jobs. In California, the average hourly wage needed is $39.01, while the state's minimum wage is $15 per hour. Other high-cost states include Massachusetts ($37.97 per hour), Washington ($31.33 per hour), and New York ($45 per hour in New York City).

  • The NLIHC released its 2022 "Out of Reach" report, an in-depth study examining housing affordability.
  • The report analyzed data from 2022.

The players

National Low Income Housing Coalition (NLIHC)

A housing advocacy group that released the "Out of Reach" report on the affordability crisis in the U.S. housing market.

Representative Maxine Waters

A Democrat from California and the Chairwoman of the US House Committee on Financial Services, who commented on the housing shortage in California and nationwide.

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What they’re saying

“In my state of California alone, there is a shortage of more than 960,000 rental homes that are affordable and available to the state's lowest-income families. Nationwide, there is a shortage of 7 million of such rental homes.”

— Representative Maxine Waters, Chairwoman of the US House Committee on Financial Services

The takeaway

This report highlights the growing affordability crisis in the U.S. housing market, with stagnant wages failing to keep pace with skyrocketing rents, making it increasingly difficult for low- and middle-income Americans to find suitable and affordable places to live. This crisis has significant implications for economic mobility, community stability, and overall quality of life for millions of people across the country.