From $108 a Month to Nearly $2,000: How Rent in the 70s Compares to Today

Middle-class families today face a rental crisis that seems almost unimaginable compared to just half a century ago. When renters opened their wallets in the 1970s, housing costs consumed a fraction of what millions spend today. Understanding how dramatically these numbers have shifted reveals just how much the burden on American households has intensified.

The 1970s Rental Landscape: A Different Era

Back in 1970, according to a New York Times article from 1973, the median monthly rent for houses and apartments across the U.S. sat at just $108. That figure seems almost quaint by modern standards. Yet this period marked a crucial turning point in American housing affordability. The 1970s brought significant economic turbulence—particularly a recession that opened the first major gap in renter affordability, according to research from the Harvard Joint Center for Housing Studies. What happened during those years set the stage for the affordability challenges that would plague renters for decades to come.

Today’s Rental Reality: A Seismic Shift

Fast forward to the end of 2023, and the landscape has transformed dramatically. U.S. News & World Report documented that typical rents had settled at approximately $1,957 per month—an eye-watering increase of roughly 1,800% compared to that 1970 baseline. Break this down further and the picture becomes even grimmer: one-bedroom apartments averaged $1,499, while two-bedroom units commanded $1,856 monthly.

This isn’t merely about higher numbers. The real story lies in how these costs consume household income. TIME reported that in 2022, roughly half of all American renters qualified as “cost-burdened,” meaning they spent more than 30% of their income on housing. The situation grew even more dire for over 12 million people who were dedicating at least half their paycheck just to keep a roof over their heads.

The Income Gap: Why Wages Haven’t Kept Pace

The fundamental problem becomes clear when you examine wage growth alongside rental increases. According to Consumer Affairs, when adjusted for inflation, the average annual income in 1970 was approximately $24,600. By the fourth quarter of 2023, the national average salary had climbed to $59,384—a growth of roughly 141% in inflation-adjusted terms.

Sounds impressive until you do the math: rental costs have exploded at a rate far exceeding wage growth. A 1970 renter earning $24,600 annually spent $1,296 on yearly rent ($108 × 12 months), representing about 5% of income. A 2023 renter earning $59,384 annually now pays roughly $23,484 in rent ($1,957 × 12 months)—consuming nearly 40% of their income. That’s a staggering reversal in financial reality for middle-class households.

The Long Shadow of Past Recessions

The affordability squeeze visible today didn’t emerge in a vacuum. Beyond the 1970s recession that first disrupted rental stability, the Great Recession of the late 2000s compounded the crisis. That economic catastrophe helped fuel the modern affordability emergency, pricing out millions from both ownership and reasonable rental markets. Each economic downturn has left deeper scars on the housing market’s ability to remain accessible.

For millions of middle-class Americans, the comparison between rent in the 70s and today tells a sobering story—not just about inflation, but about fundamental changes in how much of their lives’ earnings must go toward basic housing security.