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The gap between rent and wages in Michigan is widening, according to new report

Michigan Public | By Caoilinn Goss
Published July 23, 2025 at 10:41 AM EDT
A circa-1901 house in Ann Arbor's historically Black neighborhood of Waterhill; few Black residents remain as the neighborhood becomes increasingly gentrified.
Tracy Samilton
/
Michigan Public
A circa-1901 house in Ann Arbor's historically Black neighborhood of Waterhill; few Black residents remain as the neighborhood becomes increasingly gentrified. According to a new report, residents need to earn $30.90 per hour in order to afford rent in Ann Arbor.

The gap between rent and wages is growing wider in Michigan.

The National Low Income Housing Coalition annual report ranks Michigan 33rd in the country for affordable housing.

The median household income in Michigan is just below $69,200.

There are 4,040,168 households in Michigan, and 27% of those households rent.

Workers earning the state minimum wage of $12.48 per hour can affordably pay $649 per month in rent.

But the fair market rate for a one bedroom apartment is $1,022. A minimum wage worker would have to work 63 hours per week in order to avoid spending more than 30% of their income on housing.

That monthly rental rate is out of reach even for the average Michigan renter, who earns $18.98 per hour.

Ann Arbor and Grand Rapids were listed as the most expensive areas to rent in the state.

Renters need to earn at least $27.75 per hour in Grand Rapids to afford most housing and $30.90 per hour in order to afford rent in Ann Arbor.
Tags
Economy housing marketminimum wage
Caoilinn Goss
Caoilinn Goss is the producer for Morning Edition. She started at Michigan Public during the summer of 2023.
See stories by Caoilinn Goss
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