A recent report highlights the challenges faced by minimum wage workers in Nevada, where they need to work 96 hours a week to afford a median-priced apartment independently. This is a slight improvement from January 2024 when 97 hours were needed, reflecting a 1% decrease in rent to $1,500 per month. Despite this, Nevada’s requirement is below the national average of 106 hours.
Nevada’s minimum wage stands at $12 per hour, slightly above the national average of $11.59. This increase followed the implementation of Assembly Bill 456, passed in 2019, which incrementally raised the state’s minimum wage. The final adjustment occurred in July 2024, setting a uniform wage of $12 regardless of employer-provided health benefits, following a constitutional amendment approved by voters in 2022.
Redfin’s report underscores the gap between wages and housing costs, noting that ideally, housing should not consume more than 30% of personal income. However, minimum wage earners across most states must work beyond 40 hours weekly to meet average rent costs. Redfin’s chief economist, Daryl Fairweather, emphasizes the unrealistic nature of such work hours, highlighting the broader affordability crisis faced by low-income earners. Many resort to alternative living arrangements, such as sharing housing or seeking public assistance, to manage expenses.
The housing crisis in Las Vegas exacerbates these challenges, with home prices reaching new highs. Contributing factors include limited land availability due to federal ownership, reduced homebuilding, and elevated mortgage rates keeping homeowners from selling.
Nationwide, 15 states maintain a minimum wage of $7.25, unchanged since 2009. In contrast, Washington, D.C. has the highest at $17.50, yet still requires 102 hours of work weekly to afford median rent. New Hampshire presents the most daunting scenario, where 224 hours are needed, while South Dakota offers a more manageable 75 hours for the same purpose.
