AUSTIN, Texas – Across the 50 largest metropolitan areas in the United States, the median asking rent for zero- to two-bedroom units fell for the 28th consecutive month on a year-over-year basis, according to Realtor.com’s November Rental Report.
The national median rent now stands at $1,693, down $17 – or 1% – from last November. While this marks modest relief since the post-pandemic peak, rents remain 17.2% higher than in November 2019, keeping affordability challenges in the spotlight.
The cooling trend, coupled with state and local minimum wage increases, is beginning to create a notable, though still limited, improvement in rental affordability for the country’s lowest-wage earners, the report says.
“Two years of sustained rent declines have offered modest financial relief to renters nationwide, and as we approach the new year, state-level minimum wage increases will help to improve affordability for the most burdened households,” said Danielle Hale, chief economist at Realtor.com. “While the challenge remains immense, particularly in high-cost areas, the number of metros where two minimum wage earners can afford a typical rental without working overtime will grow in 2026, a positive sign. In other markets, especially in states with scheduled minimum wage hikes, the amount of overtime hours needed to afford a rental will decline, potentially freeing that income for other budget priorities.”
Affordability for minimum wage earners remains a critical hurdle. Assuming a two-earner household where both individuals earn the metro’s minimum wage and adhere to the 30% rent-to-income rule, only five of the top 50 metros are currently affordable without requiring overtime (40 or fewer hours per week per renter), the report says. In all five of these affordable metros, the median rent is below the national average and the minimum wage is higher than the federal $7.25.
“While our analysis is based on statutory minimum wages, the reality is that market forces often push starting pay higher, even in states defaulting to the $7.25 federal minimum,” said Joel Berner, senior economist at Realtor.com. “In several high-cost-of-living areas, however, even a higher market-driven wage or a state-mandated increase, such as the one scheduled for San Jose, does not close the affordability gap. It’s a clear signal that housing costs continue to pose a massive hurdle for those at the bottom of the pay scale.”
The new year will bring further relief to key markets due to scheduled minimum wage increases, the report says. Detroit, Mich., and Jacksonville, Fla., are poised to join the list of affordable metros in 2026. Florida metros, in particular, will see the most significant drop in required working hours.
Despite these gains, the median rental unit remains unaffordable for two minimum wage earners in 43 out of the 50 largest metros, according to the report. The most challenging markets continue to be those where the local minimum wage defaults to the federal $7.25. Very few workers are actually paid $7.25 per hour, but entry-level workers in these areas do not have the wage protections in place to make their costs of living affordable.