The Difference Between What a 1-Bedroom Cost in 2006 vs. 2026 Will Outrage You
Everyone knows renting today costs more than it did 20 years ago. The question is how much more. Unfortunately, it's gone up faster than wages have.
In 2006, the average monthly rent across all apartment sizes was $782, according to iPropertyManagement, which compiled the figure from U.S. Census and Federal Reserve data. Today, the national median for a one-bedroom is $1,510, according to ApartmentAdvisor.
Here is what the math looks like.
Try This: Tips To Get Your Mortgage Payments as Low as Possible
Don’t Delay: Start Growing Your Net Worth With Smarter Tracking
Why Rent Outpaced Inflation
The U.S. added more than 22 million homes over the past 20 years, according to Census Bureau data. At the same time, homes available to buy dropped by nearly 500,000 over that same period to 850,000. The number of vacant homes overall rose by about the same amount, 570,000, representing a tightening market for renters amid the increase in percentage of single-family detached houses as share of home construction.
What You Need To Earn
The federal standard for housing affordability is spending no more than 30% of your gross monthly income on rent, according to Congress.gov. At $1,510 per month, that means earning at least $60,400 per year before taxes.
That 30% federal standard has not changed since 1981. The rental market has.
The median earnings for full-time workers in 2024 were $63,360, according to the most recent Census Bureau data available. That squeaks over the 30% bar by $74 per month, and does not account for associated housing costs like utilities, renters' insurance or a security deposit.
The Bottom Line
Rent has grown faster than inflation for two decades. The Census Bureau's own data, adjusting 2005 housing costs for inflation, shows renters are paying $311 more every month than normal price growth would predict. Over a year that is more than $3,700. Nearly 22.7 million renter households are feeling it, according to the Census Bureau.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: