It's not your imagination - Rents are rising - Zillow research shows that renters must earn $100,000 a year in cities every year, just like twice as many in 2020

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Cash-scarce Americans hope that stock market instability may help lower residential rents, which is bad news. Zillow's April 2025 rental market report clearly shows that the housing affordability crisis in the United States is worsening. According to the study, since 2020, the number of cities where renters have to earn $100,000 a year to afford rent has doubled.

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If not bad enough, the report also shows that the average tenant must have $20,000 more rent per year than it will be in 2020. In short, this means that high rents that cause people to leave markets such as New York and Los Angeles are spreading to other parts of the country. The average rent is so high that the city that provides them with six-figure income is:

Since 2020, Los Angeles, Riverside, San Diego and Miami are the latest additions to the $100,000 list. Spiral rentals are common in both single-family and multi-family real estate sectors. Zillow's report shows that the average rent for "typical American apartments" has increased by 28.7% to $1,858 since 2020, while rents for single-family homes have increased by 42.9% to $2,256 during the same period.

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In contrast, Zillow's data also estimates that the median household income in the U.S. has grown to about $82,000 since 2020. This increased by 22%, but was still not enough to keep up with the acceleration of rents during the same period. According to Zillow, households or renters with median income in the United States have to spend 29.2% of their monthly income to rent apartments in April. That's 27.4% in 2020.

In either case, the landlord will have a tenant with an income-to-rent ratio of 3:1 when processing a lease application. It's easy to see this and assume that the average tenant spends 29.2% of their income is not the end of the world in rent. However, it is important to remember that many renters also deal with other financial obligations (such as student loan debt, credit card debt, or both).

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When you add these fees to your rent, it’s hard for a renter to put the money aside to invest or buy a home. This could put millions of Americans in a vicious cycle, becoming eternal renters. Even Americans whose annual incomes of apartments exceed their annual income in the most expensive cities in the United States are hard to afford to afford the house there.

On the other hand, this is ideal for many residential real estate investors or REIT shareholders. The presence of permanent tenants will enable them to lock in passive income streams for many years to come. However, they may not be able to continue to increase returns. Even if the renter cannot permanently lock it in the rent, the landlord will not permanently raise the rent if the salary does not increase proportionally.

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This article is not your imagination - Rents are rising - Zillow research shows that renters must earn $100,000 a year in making money each year, twice as much as they originally appeared on Benzinga.com in 2020.