ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

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

The minimum wage today is not enough for workers to make rent. 
UPDATED AUG 21, 2024
A demonstrator calling to suspend rent and mortgage payments. Getty Images | Photo by Scott Olson
A demonstrator calling to suspend rent and mortgage payments. Getty Images | Photo by Scott Olson

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. 

Screenshots from the video | TikTok | @fmsmith319
Screenshots from the video | TikTok | @fmsmith319

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. 

Screenshots from the video | TikTok | @fmsmith319
Screenshots from the video | TikTok | @fmsmith319

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. 

Screenshots from the video | TikTok | @fmsmith319
Screenshots from the video | TikTok | @fmsmith319

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. 

Screenshot from the comments | TikTok | @kristina10181990
Screenshot from the comments | TikTok | @kristina10181990

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. 

Screenshot from the comments | TikTok | @mercedesmendoza220
Screenshot from the comments | TikTok | @mercedesmendoza220

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. 


@fmsmith319

Boomer: “Millennials and Gen Z need to stop complaining about housing prices.”

♬ original sound - Freddie Smith

 

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

MORE ON MARKET REALIST
Had the contestants not gotten their gamble right, they would have lost everything they'd earned.
3 hours ago
The revelation came thanks to a fan who asked the question during a "Jeopardy!" taping.
4 hours ago
The entrepreneurs' decision came as a big shock to the sharks, and they did not hide it.
5 hours ago
Tina double-guessed her third answer, "Does April have 31 days?" Harvey gave her the stink eye.
7 hours ago
All the theatrics didn't work when sharks started scrutinizing profit margins.
8 hours ago
"Can I stop at any time?" the player nervously inquired. "You can stop any time you want, yes," Carey assured.
9 hours ago
Guests on the show would run with it if they ever got that kind of money on Pawn Stars.
1 day ago
The guest even said to keep the kids in the dark about how valuable these items were.
1 day ago
The company had fantastic sales but a crushing debt with a high interest rate that the sharks hated.
1 day ago
It was only Carey's second season in the show and he could have been part of a massive scandal.
2 days ago
“I won’t say anything, and you know why,” he said, with a gesture to zip his lips.
2 days ago
The ring was rescued by the guest's mother thanks to a stranger early in the morning.
2 days ago
"She blanked out. It happens to the best of us," a fan sympathized with the player.
2 days ago
The instrument originally belonged to the guest's grandfather who suffered a horrific injury.
3 days ago
The contestant's wife seemed embarassed at that point of time, and worried as well.
3 days ago
The co-founders of Dino Don got the shark that they always wanted on board.
3 days ago
One can understand why the measure is in place but the shopper was having none of it.
3 days ago
"My husband and I definitely noticed it! We had to rewind it a few times," a fan reacted.
3 days ago
All of the sharks agreed that she had a great product and the drive to be successful a businesswoman.
4 days ago
It's possible that the dog played a little part in making it easier for them to get a deal.
4 days ago