- A new study has ranked each state on rent affordability for degree holders, identifying where couples are likely to rush to move in together
- The findings consider the average salary for bachelor’s degree holders compared to the median rent paid for new leases in each state
- Degree holders in Hawaii, California, Florida and New York are likely to skip key relationship milestones due to rental costs
- Moving expert Chuck Gordon discusses the importance of financial planning for new graduates when considering their post-college home
Due to rising rental costs and stagnant wages, many young couples may be accelerating relationship milestones to move in together and share rent.
A study compared the average wage for bachelor’s degree holders to the median rent for a one-bedroom apartment, identifying the least affordable states. Hawaii topped this list, with California, Florida, and New York following closely behind.
The analysis, conducted by storage unit comparison site Sparefoot.com, examined census data to calculate rent-to-income ratios, showing how rent can consume a significant portion of income, leading couples to share the burden by living together.
The study also revealed how median rent fluctuated in each state from January 2023 to January 2024, identifying areas with the largest price increases.
In Hawaii, the most expensive state, a third (33%) of a typical degree holder’s annual salary is allocated to rent, with a median of $1,700 for a one-bedroom apartment and an average salary of $61,880 for a bachelor’s degree holder.
Sharing this rent between two people reduces the burden to a more manageable 16.5% per person.
California has a median rent of $22,236 per year, consuming 29.4% of the $75,688 average salary. By sharing this expense between partners, each would spend 14.7% of their salary.
Florida has a much lower median rent of $16,092, but the proportion of income remains high at 28.2% due to the lower average salary of $56,243. Splitting this rent between two people reduces the burden to 14.1%.
New York has a median rent of $20,172, consuming 28.6% of the average $71,567 wage. With two people sharing, each would only spend 14.3% of their salary.
In Colorado, the average rent is $17,526, which consumes 24.8% of the average $69,493 salary. Living together and sharing the cost makes this a more manageable 12.4% per person.
The ten most expensive states for bachelor’s degree holders
In more promising news, the study identified West Virginia as the most affordable state for those looking to live on their own this year.
West Virginia emerged as the most affordable state for bachelor’s, with a median yearly rent of $7,476 – just 14.14% of the average graduate salary ($52,887).
With its lower cost of living, the state offers an inviting environment for recent graduates seeking to balance financial stability with career development.
In second place is Iowa, where the median rent takes a nominal 15.55% of the average bachelor’s salary of $53,117.
Arkansas and Ohio closely match in affordability, requiring just 15.77% and 15.78% of the average graduate salary to cover housing, respectively. In Arkansas, the median yearly rent is $10,740, compared to the typical graduate wage of $62.6k.
Similarly, Michigan’s annual rent is $10,344, providing comparable value when compared to the average graduate salary of $63k.
These states stand out as affordable options for graduates, whether living alone or sharing as a couple.
The ten most affordable states for bachelors
The study also highlights the increase in Oregon rental prices as the state saw the highest increase nationwide, with a 4.18% change from January 2023.
Despite localized rent increases in urban centers like Providence, Rhode Island overall saw a notable rental cost decrease of 5.9%.
Washington, South Carolina, and New Mexico stand out for their rental stability, with rent prices in these states experiencing minimal fluctuations — less than 1% from January 2023 to January 2024.
Chuck Gordon, CEO of Sparefoot.com shared his thoughts on the findings, saying: “New graduates need to balance the cost of living with potential job prospects in their chosen states. While sharing rent with a partner can be practical, it’s important not to rush into financially driven decisions solely to alleviate the burden.
“Making informed decisions early can pave the way for financial stability and career growth, as many graduates will seek post-college housing without considering how it fits into their budget. Taking this into account before deciding where to live can save a lot of stress later down the line.”
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