Phoenix residents need to work 66 hours to pay monthly rent, study finds
Feb 21, 2018, 4:05 AM
(Twitter/@visitphoenix)
(Twitter/@visitphoenix)
PHOENIX — If you are looking to save some money on rent, Phoenix is not the place for you.
Phoenix has ranked among the top ten major cities in the U.S. for the number of hours that residents needed to work in order to pay rent, according to SmartAsset.
A.J. Smith, the vice president of financial education with SmartAsset, told KTAR News 92.3 FM the average worker in Phoenix takes home $14.59 an hour after taxes.
That income combined with median rent costs of $960 a month means that the average Phoenix resident needs to work 66 hours just to pay their rent, Smith said.
“That means more than one week of (work) each month is going to rent,” she added.
The federal government considers residents who spend more than 36 percent of their income on housing to be cost-burdened, so Smith said those who fall in that category should decide if their spending practices align with their financial goals.
“We typically think in terms of monthly bills, can we meet our bills,” she said. “But this (study) goes further as how far we are working to pay those bills.
“It’s a good idea to sit down and work out for yourself, are you OK with that number?” she added. “Can you make changes to your living situation?”
The top five cities in the U.S. in terms of how long residents have to work to pay off their rent include San Jose, Los Angeles, San Diego, New York and Boston.
KTAR News’ Jeremy Foster contributed to this report.
