Chicago Renters Spent Over Half of their Workdays in 2017 Earning Enough Just to Pay Rent

SAN FRANCISCO, Dec. 27, 2017

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.