Oct. 21, Clever, a real estate company, published a study on the most affordable cities to live in for minimum wage workers. The federal minimum wage is set at $7.25 but varies depending on the state. The study considers state minimum wage and basic rental costs when determining which cities are the best.
“Clever evaluated the 50 largest housing markets in the United States, looking at typical rent prices for units of various sizes and how they relate to the area’s minimum wage.”
Earning federal minimum wage means that a full-time employee will live below the poverty line. Pre-tax, the worker would make $1,190 monthly. Many of the locations listed are barely above the poverty line, the highest being Denver, Colorado at $18.29. Even as the top city for pay, Denver is no. 9 on the list. Buffalo, New York, holds the top spot with a $15.00 minimum wage and a lower average rent ratio.
According to the study, residents of Buffalo still struggle to afford their dwelling according to statistical data..
“Minimum-wage workers in Buffalo can expect to pay 39% of their income for a typical one-bedroom unit. That’s the lowest rent-to-income ratio of any major city in the country but still higher than the common affordability threshold of 30%.”
The reality of today is that the housing and rental market is volatile. Many people are struggling under the weight of low pay, rising rent, hidden fees, and rising inflation. Moving to a city with a better wage-to-rent ratio may work to relieve financial stress on individuals and families. With the spirit of optimism in mind, BLACK ENTERPRISE is going to run down a few of the most affordable places to live.
Buffalo, NY
Snuggled in the northeast corner of the U.S., Buffalo is a hop, skip, and jump away from Canada. The $15 minimum wage is double the federal wage. Residents can be sure to experience beautiful winters. The city is only 6 hours away from New York City.
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: @peterjcimino /
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St. Louis, Missouri
Home of the Gateway Arch, St. Louis is a city of man-made marvels. The city boasts a $12.30 minimum wage, and the average rental costs $984 monthly. The city has its own distinct, midwestern culture and thoroughly embraces its professional baseball team, the St. Louis Cardinals.
Cincinnati, Ohio
Ohio is home to one of the greatest basketball players alive, LeBron James. Cincinnati cannot claim the honor of being the legend’s hometown. But the city tied with Cleveland and Kansas City, placing 6th on the affordable cities list.
Denver, Colorado
Living near the mountains is not for everyone. Those with an affinity for extreme climates would fare well in a city that fluctuates from hot and dry summers to cold and snowy winters. With the highest minimum wage at $18.29, the mountains just might be bearable.
Detroit, Michigan
Detroit, better known as the Motor City and home of Motown Records, is steeped in culture. The city is ranked no. 10 on the list as 61% of a resident’s minimum wage income is needed to cover an average rent of $1,060. Still, if the cost of living in other areas is controlled, the other 39% may grant a decent quality of life.
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