Realtor brilliantly explains the differences between today’s salaries and housing compared to 1980s

In 2024, a full-time minimum wage worker can not afford a two-bedroom rental home in any state of the US, according to a report from the National Low Income Housing Coalition (NLIHC). However, this wasn't the case back in the 1980s, according to realtor and TikTok creator, Freddie Smith (@fmsmith319). In a viral video, Smith explained how a minimum wage worker could easily make rent back in the 80s and how impossible it is for the younger generation today. 

2024 vs 1980s

In the viral video, which has over 7.9 million views, Smith breaks down how much workers from the two generations needed to put down for rent. He explains that in the 80s, the rent for a simple one-bedroom apartment was $243. At the time, the minimum wage was $3.10 per day, bringing the monthly gross to $496. This meant that a minimum wage worker needed to pay 48.9% of their income to pay rent. 

Coming to 2024, Smith says that the average rent now is $1,747 and the federal minimum wage is about $7.25. This brings the gross income to $1,160. Unsurprisingly, the minimum wage today is not enough for the workers to make rent. 

Smith even goes on to double the minimum wage to $14.50, since people at Walmart and some fast food joints are making that much. While it was enough to make rent, workers still needed to put down a whopping 75% of their income. 

Going beyond minimum wage, Smith says that currently, the average income of a college graduate in the US is about $24, according to ZipRecruiter. Thus, their gross income comes out to be $3,840. This means that they will need to pay about 45.4% of their income for rent, which is nearly equal to what a minimum wage worker paid back in the 80s. 

Further as per NLIHC's "Out of Reach" report, in 2024, a full-time worker needs to earn an hourly wage of $26.74 to comfortably afford a one-bedroom rental home.

He then says that a college graduate, who spent 4 to 5 years in school, and paid over $50,000 to $70,000 to get a degree has to spend as much as a minimum wage worker who did two weeks of training to get a job in the 80s. 

While the numbers put out by the creator were astonishing, viewers did not seem to be surprised as they were aware of the ground reality. "And that was ONE person back in 1980. now we NEED 2 incomes just to SURVIVE," commented user @metallicaman8. 

Several viewers also argued that college graduates didn't make nearly as much as $24. "Just had a job offer me a SENIOR level position with a bachelor in science and 3+ years of experience have the audacity to offer me $16.50/hr.," shared user @amandacbock. 

Meanwhile, many expressed their frustration over the older generation not understanding their problems. "Young boomer here, I've had this fight with older boomers..the math most certainly has changed...I feel for young people," wrote user" @cactusking2024. "Boomers have no idea," complained another user @mud.mouth. 

For more such informative videos and interesting content, follow Freddie Smith (@fmsmith319) on TikTok.