‘Money can go quick’: Rising wage gap depleting Boston renters

BOSTON — A new analysis shows renters in the Boston area face one of the largest gaps in the country between what they should earn to afford housing and what they actually make.

You don’t have to look far to find people who are spending beyond their means for monthly rent payments.

Data from Redfin reveals renters in the Boston area typically earn 39% less than what they should to afford a place.

The median income of a renter in the Boston area is $69,000.

However, to pay a typical monthly rent payment, a Boston area renter ought to make $113,000.

That’s according to Redfin’s estimates, which are based on the concept that a household should spend 30% of its income or less on rent.

Only 30% of Boston-area renters actually make that high-income threshold.

“By the time you pay your bills, your utilities, and everything in between and have some semblance of a social life, that money can go quick,” said Charlestown resident Bryanne Pepin.

34-year-old Pepin works two jobs to survive in one of the most expensive cities in the country.

“You do what you got to do,” she said.

The Redfin analysis shows Boston has the third biggest gap in the country when comparing income and apartment costs behind New York City and Miami.

The typical U.S. renter household earns an estimated $54,712 per year.

That’s 17.3% less—or $11,408—than the $66,120 a renter must earn to afford monthly rent for the median-priced U.S. apartment of $1,653.

“Ultimately, the goal should be to stop paying rent and to be able to buy something. The rent, you’re really just throwing away and you’re not saving anything. You’re not building up any equity,” said Kathleen Sablone, Co-Chief Planning Officer at Boston Financial Management.

Sablone said she understands Boston renters are stretched thin but stresses the importance of making a budget and tracking every dollar spent.

“So really thinking about where their money is going and thinking about where they are going directionally over time,” said Sablone. “It’s never too late to start. When you take minimal steps along the way, you can develop good habits.”

She said the toll of someone spending beyond their means can be a cycle that’s tough to escape for renters who aren’t building wealth through rising property values.

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