Beginning January 1, more than 8.3 million workers in 19 states will receive a boost to their paychecks thanks to increases in the minimum wage.
This change is more than just a number—it could mean the difference in whether families can afford to pay rent and keep up with rising living costs.
What’s Happening?
- 19 states are raising their minimum wage in 2024.
- Over 8.3 million workers will earn more, gaining a combined extra $5 billion.
- In many places, minimum wages will go up automatically each year to keep up with inflation.
- Several cities and counties are also raising their local minimum wage.
For the first time, more workers will live in states with a $15 or higher minimum wage than in states where the minimum is still stuck at $7.25 per hour (the federal minimum wage which hasn’t increased in more than 15 years).
Why Is This Important for Renters?
1. Making Rent Payments Easier
Raising the minimum wage means that millions of workers will take home larger paychecks. For renters, whose biggest monthly expense is often housing, this can be a much-needed relief. For example:
- In Hawaii, a minimum wage increase from $14 to $16 per hour means a full-time worker will earn about $1,346 more per year.
- In Missouri, the minimum wage jump from $13.75 to $15 will boost annual full-time pay by about $920.
This extra money can help cover rent, utilities, and other essentials.
2. Helping Families Stay in Their Homes
Many people earning minimum wage are supporting families. In fact, about a quarter of those benefiting from these increases are parents, and almost 5 million children live in households with at least one member getting a raise.
Extra income means fewer families face the threat of eviction or homelessness due to missed rent payments.
3. Addressing Affordability and Rising Costs
Rents and other prices have risen across the country, but wages have not always kept pace.
A higher minimum wage puts more money in workers' pockets to help pay for rising costs, making life a bit more affordable for folks struggling to keep up.
4. Reducing Housing Instability
Many minimum wage earners spend a large share of their earnings on rent. In states with low minimum wages (still $7.25), the gap between what people earn and what they need to pay for rent is huge.
While even a $15 minimum wage doesn’t solve everything, it closes some of that gap—helping to prevent housing instability.
Who Benefits the Most?
The majority (over 58%) of workers getting these raises are women. Black and Hispanic workers are also more likely to benefit.
Almost half of all impacted workers are full-time employees, and about one in five affected workers is from a household below the poverty line.
Affordable Housing Still a Challenge
While these wage increases are a step forward, in most places the minimum wage is still less than what’s needed for a truly secure and adequate standard of living—especially in expensive cities.
But every increase helps, especially for renters struggling to make ends meet.
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Check out: Renting vs. Buying a Home in 2026: Which Is More Affordable?
