A $68K salary is needed to afford rent in the Richmond area
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People in the Richmond area have to make more than $68,000 to afford the typical monthly rent here, according to a new report.
Why it matters: That's 40% higher than you would've needed to earn five years ago, per the analysis from Zillow.
- That percentage is one of the biggest increases recorded out of the 50-plus U.S. metros Zillow analyzed.
What they did: Zillow assumed rent should take up no more than 30% of household income, a common standard for calculating affordability.
- By that measure, affording the typical Richmond-area rent — which came in at roughly $1,700 in April — requires an annual income of $68,307.
- And the median household income for the region is $84,332, per the U.S. Census.
Yes, but: Census data also says the average income for a single person in the Richmond area is about $46,400, nearly $22,000 less than the income you need to afford rent.
What they're saying: "Housing costs have surged since pre-pandemic, with rents growing quite a bit faster than wages," Orphe Divounguy, senior economist at Zillow, said in a news release.
- "This often leaves little room for other expenses, making it particularly difficult for those hoping to save for a down payment on a future home."
Zoom out: To afford the typical nationwide rent of $2,024 per month, a renter needs to make almost $81,000 yearly, Zillow's analysis found.