Austin among least affordable cities for minimum wage earners
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AUSTIN (KXAN) -- A 2024 analysis from Clever Real Estate found only three cities in the U.S. have affordable rents for minimum wage earners -- and Austin nearly tops the list as one of the least affordable areas nationally.
Clever Real Estate's analysis found a person would have to earn a minimum of $18 an per to afford renting a one-bedroom apartment. That determination is based on the 30% rule, which suggests no more than 30% of an individual's gross monthly income is spent on housing.
Using that rule, only three cities met that criteria: Denver at $18.29 per hour minimum wage; Seattle at $19.97 per hour minimum wage; and San Francisco at $20.96 per hour minimum wage.
In Austin, the Lone Star State capital ranks No. 3 nationally as one of the least affordable for minimum wage earners, with the average minimum wage employee needing more than four times their full income to meet the 30% affordability standard.
- Atlanta, Georgia: 4.38 times minimum wage income needed
- Nashville, Tennessee: 4.38 times minimum wage income needed
- Austin, Texas: 4.38 times minimum wage income needed
- Charlotte, North Carolina: 4.37 times minimum wage income needed
- Dallas, Texas: 4.26 times minimum wage income needed
- Raleigh, North Carolina: 4.22 times minimum wage income needed
- Philadelphia, Pennsylvania: 4.01 times minimum wage income needed
- Salt Lake City, Utah: 3.85 times minimum wage income needed
- Houston, Texas: 3.39 times minimum wage income needed
- New Orleans, Louisiana: 3.28 times minimum wage income needed
- San Antonio, Texas: 3.27 times minimum wage income needed
- San Jose, California: 3.26 times minimum wage income needed
- Memphis, Tennessee: 3.2 times minimum wage income needed
- Miami, Florida: 3.04 times minimum wage income needed
- Birmingham, Alabama: 3.03 times minimum wage income needed
In Austin, Clever Real Estate's analysis found the cost of rent on a typical one-bedroom unit is approximately 131% of minimum wage earners' full monthly income.
Affordability has been a focus of concern for Austin leaders as the city has become increasingly more expensive. Officials are working on building out the city's affordable housing supply, and have updated Austin's living wage for city employees.
While Texas' minimum wage is set at the federal minimum standard of $.725 per hour, Austin adopted this month its minimum living wage of $21.63 per hour for all regular and temporary city employees. Travis County's newest minimum living wage also took effect at the start of the month, listed at $21.84 per hour for all regular and temporary county employees as well as special projects workers.