Chicago Renters Spent Over Half of their Workdays in 2017 Earning Enough Just to Pay Rent
SAN FRANCISCO, Dec. 27, 2017 /PRNewswire/ -- Renters in Chicago spent more than half their workdays in 2017 earning enough money to cover the rent, according to a new analysis from HotPads®. This doesn't include time spent working to pay for other living expenses, like food and transportation.
There were 260 workdays in 2017, and the typical Chicago renter earning the median income worked 143 of those in order to have enough money to pay rent this year. The median annual income in Chicago is $39,380, while the median rent is $1,795 per month, or $21,540 per year. This means Chicago renters are spending about 55 percent of their working time earning enough money just to pay rent. Nationally, 13 percent of renters report living with roommates to offset these high costs.(i)
The gap is wider for Chicago renters making less than the city's median income. For example, baristas worked 283 days this year in order to afford the average rental in Chicago, and those in retail worked 244 days. In comparison, financial analysts worked about half the average time -- just 71 days -- to earn enough to pay rent this year.
"With only 260 working days a year, Chicago renters are faced with the reality that they will spend more than half of them just trying to make their rent," said Douglas Pope, co-founder and general manager of HotPads. "Luckily, there are plenty of vibrant Chicago neighborhoods for renters to consider that are below the city's average median rent, such as Marquette Park and Pullman. Renters can also consider doubling up with roommates to reduce some of that burden the cost of rent puts on their wallets."
Financial experts recommend renters dedicate no more than one-third of their monthly income toward a rental payment, but even renters who are comfortable spending half their paycheck on rent still have few options within the city.
Baristas who are comfortable spending half their income on rent each month can only afford to do so in the Marynook neighborhood, where the median rent is $775 a month. Retail workers have a few more options, including Marquette Park, Pullman and The Island.
Meanwhile, financial analysts can afford to live alone in any Chicago neighborhood if they are comfortable putting 40 percent of their income toward rent. In West DePaul, for example, where median rent is $2,750 per month, a financial analyst will need to devote 41.5 percent of their annual income -- or 108 workdays -- toward rent.
HotPads is a Zillow Group owned apartment and home search platform for renters in urban areas across the United States. For more information on Chicago's rental market, visit HotPads.com.
Time Worked for Rent in 2017 by Job Category
Job Category Median Hourly Cost of Rent Hours Worked Days
Annual Wageiii for the for Rent in 2017 Worked
Incomeii Entire Yeariv for Rent in
2017v
--- -----
All Occupations $39,380 $18.93 $21,540 1,138 143
--------------- ------- ------ ------- ----- ---
Baristasvi $19,800 $9.52 $21,540 2,263 283
---------- ------- ----- ------- ----- ---
Retail $22,980 $11.05 $21,540 1,950 244
Salespeople
-----------
Teachers $49,900 $23.99 $21,540 898 113
-------- ------- ------ ------- --- ---
Registered $73,360 $35.27 $21,540 611 77
Nurses
------
Financial $79,890 $38.41 $21,540 561 71
Analysts
--------
Days Worked for Rent in 2017 by Neighborhood
Job Category Marynook Marquette Pullman The Island West DePaul
Park
(Median (Median (Median Rent: (Median Rent:
Rent: $2,750) (Median Rent: $925) $950) $2,750)
Rent: $900)
--- ----------
All Occupations 62 72 74 76 218
--------------- --- --- --- --- ---
Baristas 123 142 146 150 434
-------- --- --- --- --- ---
Retail 106 123 126 129 374
Salespeople
-----------
Teachers 49 57 58 60 172
-------- --- --- --- --- ---
Registered 33 39 40 41 117
Nurses
------
Financial 31 36 37 38 108
Analysts
--------
HotPads
HotPads is the most efficient rental search platform for urban areas across the United States, with features designed for competitive markets such as map-based search, real-time notifications and detailed information on landlords and property managers that help renters spend less time searching and more time feeling excited about their next home.
Launched in 2005, HotPads is based in San Francisco and is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG).
HotPads is a registered trademark of Zillow, Inc.
(i) Zillow Group Report on Consumer Housing Trends, 2017
(ii) Incomes in this analysis were determined using city-level data from the Bureau of Labor Statistics
(iii) HotPads assumed a 40-hour workweek to calculate the hourly wage for a job category. For salaried workers, this is the equivalent hourly wage.
(iv) To calculate the yearly rent, HotPads took Chicago's current monthly median rent and multiplied it by 12.
(v) HotPads assumed eight-hour workdays to calculate the days worked to pay rent.
(vi) Income data from the Bureau of Labor Statistics' "Counter Attendants, Cafeteria, Food Concession, and Coffee Shop" job category.
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SOURCE HotPads, Inc.
