Mass. is third most expensive state for housing rentals

Massachusetts is the third most expensive state in the United States to rent a home, requiring a household income of more than $86,000 a year to reasonably afford a modest two-bedroom apartment, according to a new report out Wednesday.

The findings, detailed in the National Low Income Housing Coalition’s annual “Out of Reach” report, put new numbers on a reality that Massachusetts residents have long known: The state is a hub for jobs, education, and innovation. But living here, especially for renters, costs ever more, stretching even moderate earners to the limit. Only Hawaii and California are more expensive to rent in, and not by much. Even high-cost states like New York lag behind Massachusetts in that category, according to the report. Greater Boston this year is the sixth most expensive metropolitan area in the United States, only trailing five cities in California. The “housing wage,” or wage needed for a person to avoid being costburdened — spending more than 30 percent of their income on housing costs — in Massachusetts has climbed by nearly $4 just in the last year, as the frozen homebuying market and sinking housing production have put greater strain on the rental market. NLIHC calculated the amount a typical renter needs to earn to afford housing is $41.61 per hour, up from $37.97 in 2022. Nationwide, that figure is $28.58. There is no US state where a person making minimum wage and working a typical 40-hour workweek can afford a modest two-bedroom. — ANDREW BRINKER