The U.S. rental market is clearly cooling, but for many renters, especially those earning the lowest wages, affordability remains a serious challenge.
According to the latest November rent report from Realtor.com, median asking rents declined for the 28th consecutive month, offering modest relief after years of steep increases. Still, the data shows that only a small number of large metro areas are truly affordable for full-time minimum-wage workers.
Rents Are Down, but Still Much Higher Than Before the Pandemic
Across the 50 largest U.S. metro areas, the median asking rent for homes with zero to two bedrooms came in at $1,693 in November 2025. That figure is down 1.0% from November 2024 and slightly lower than October.
Even with these steady declines, rents remain 17.2% higher than in November 2019, before the pandemic reshaped housing demand. In other words, renters are getting some breathing room, but costs are still elevated compared to just a few years ago.
This pattern also reflects seasonal trends. Rents often soften during the winter months after peaking in the summer, and this year has followed that familiar path.
Minimum Wage Earners Still Face a Tight Squeeze
Realtor.com measured affordability using a common standard: rent should take up no more than 30% of income. The analysis assumes a two-earner household, with each person working full time at the local minimum wage.
Under those assumptions, only five of the 50 largest metro areas are affordable without overtime, meaning each renter works no more than 40 hours per week. These metros combine lower-than-average rents with higher local minimum wages.
In most major cities, however, even two full-time minimum-wage earners cannot afford the typical rental unit without working extra hours.
Wage Increases Offer Some Relief, but Not Everywhere
State and local minimum wage increases scheduled for 2026 are expected to help improve affordability in some markets. In places with planned wage hikes, the number of hours required to afford rent is likely to fall, freeing up income for essentials like food, transportation, or savings.
Danielle Hale, chief economist at Realtor.com, said the recent trends point to slow but real progress.
She noted that while affordability challenges remain severe especially in high-cost cities more markets should become manageable for low-income households as wages rise. Even in metros that remain unaffordable, the overtime burden is expected to ease.
High-Cost Cities Remain Out of Reach
Despite wage growth, many expensive housing markets continue to pose problems for low-income renters. Joel Berner, senior economist at Realtor.com, explained that even when wages rise above the federal minimum, they often still don’t match housing costs.
In some high-cost areas, including places with scheduled minimum wage increases, the gap between pay and rent remains wide. This highlights how housing costs, not just wages, are the main obstacle for many renters.
Berner also pointed out that while many workers earn more than the legal minimum due to market demand, those increases are often not enough to offset high rents.
What Comes Next for Renters
The rental market is clearly shifting. Supply has improved in many areas, demand has cooled, and rents are no longer climbing at the pace seen earlier in the decade. That’s good news.
Still, meaningful improvements in rental affordability will depend on continued wage growth, more housing supply, and slower rent increases over time. Without those changes, many renters especially those at the bottom of the pay scale will continue to struggle.
For now, the takeaway is simple: rents are easing, but affordability is still out of reach for many Americans. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
