HONOLULU (KHON2) — Rent continues to climb in Hawaii despite wages making a drastic jump.
Many Hawaii residents are either forced to live together in multigenerational homes or break the bank trying to pay rent, bills and have a social life.
A new study by NiceRx ranked states where residents spend the most amount of their income on rent. Multiple financial advisors throw up the 30% rule. Meaning only 30% of your take-home income should go towards rent.
According to the study, the average cost of rent in Hawaii totals $29,772 and residents are losing around 49.3% of their income to pay for it.
That’s not all, of the 50.7% left over in one’s income NiceRx suggests some residents spend 9.74% on health insurance and 13.731% on childcare.
That leaves less than 30% of one’s income on food, bills, hobbies and more.
The study lays out why Hawaii has the most unaffordable rent in the country with the annual cost reaching $29,772 compared to annual salaries of $60,389.
This means people in Hawaii are spending 49.30% of their salaries, virtually half of their earnings, just to cover the cost of rent.
NiceRx claim rent and childcare being the two most expensive costs of living factors in the U.S. and when paired together they cost and average of $45,423 per year which comes to more than 46% of the average annual income.
Health insurance ranks as the third most expensive cost of living factor in the U.S. with the average costs around the country being $6,500 per-year making up to more than 10% of the average income.
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To read the full study by NiceRx comparing what states pay the most out of their income on rent head to their website.