A recent study has identified the states where renting a studio apartment is the least affordable, with New York ranking as the worst. Home warranty experts at Cinch Home Services gathered data from the U.S. Bureau of Economic Analysis (BEA) and the National Low Income Housing Coalition to analyze and rank the states based on their affordability for renters in studio apartments.
Florida is ninth, where renters allocate 27.46% of their disposable income to rent alone. The average rent for a studio apartment in Florida is $1,395.
New York topped the list, where individuals spend an astonishing 34.00% of their disposable income on rent alone. The average market rate for a studio apartment in New York State is $1,939 per month. In contrast, the average rent for a studio apartment across the U.S. is $1,100, meaning that New Yorkers pay an additional $839 per month compared to the national average.
Hawaii follows closely as the second least affordable state, with renters spending 33.83% of their disposable income on rent. The average rent for a studio apartment in Hawaii is $1,643 per month, again significantly above the national average.
California ranks third, where renters in studios allocate 30.98% of their disposable income to rent. The average cost of a studio apartment in California is $1,785, which is $685 more than the U.S. average.
Georgia comes in fourth, with renters spending 28.87% of their disposable income on rent. The average monthly rent for a studio apartment in Georgia is approximately $1,272, still $172 above average.
Massachusetts ranks fifth, with renters spending 27.96% of their disposable income on studio rent. The average market value of a studio apartment in Massachusetts is $1,773 per month.
Washington is sixth, with renters paying 27.93% of their disposable income on rent. The average rent for a studio apartment in Washington is $1,658 per month.
Maryland takes the seventh spot, where studio renters spend 27.68% of their disposable income on rent. In Maryland, the average cost for a studio apartment is $1,498 per month, which is again above the national average.
Arizona ranks eighth, with renters spending 27.48% of their disposable income on rent. The average monthly rent for a studio in Arizona is $1,289.
Oregon rounds out the top ten, with renters spending approximately 26.52% of their disposable income on rent for a studio apartment. The average market price in Oregon is $1,296 per month.
A spokesperson for Cinch Home Services commented on the findings: “The ranking of the worst states for single renters in studio apartments highlights the growing disparity between wages and housing costs in parts of the U.S. In these states, even the smallest, supposedly most affordable units demand a significant portion of renters’ income, with some exceeding 30% of monthly earnings.
“High living expenses in areas like California, New York, and Hawaii contribute to financial stress for renters seeking budget-friendly housing options. This issue underscores the need for both affordable housing initiatives and wage adjustments to meet the rising cost of living in America.”
Methodology
Data on per capita personal disposable income was obtained from the U.S. Bureau of Economic Analysis (BEA) and divided by 12 to calculate the monthly disposable income for each state. Additionally, the fair market rent (FMR) data was collected from the National Low Income Housing Coalition.
The average monthly rental rates were then compared to the monthly per capita disposable income data from the BEA to determine the percentage of monthly income typically spent on rent in each state. States were ranked from highest to lowest percentage spent on rent, indicating least affordable to most affordable.
