Feeling Financially Squeezed Living in Washington State? There’s a Reason — And It’s Bigger Than Your Budget!

Key Takeaways

It’s not you. A new state-wide study confirms wages just aren’t keeping pace with rising rent, so if money feels tight, it’s not a personal failing, it’s a real financial gap that is not your fault.
Turn your overwhelm into clarity. By checking what percentage of your income goes towards your rent payment, you gain a clear, judgment-free starting point for finding a little more breathing room.

New Study Pinpoints the Growing Gap Between Housing & Wages

If you are a renter in Washington State, and you feel like life is a lot more expensive than it used to be, you are not alone! If you’re constantly feeling like you’re out of money once your basic needs have been met, this is likely due to how your wages stack up against your housing costs.

The National Low Income Housing Coalition’s latest report shows that wages in this state are not keeping up. Washington ranks among the least affordable states for renters. Data shows that households must earn at least $82K annually in order to afford a 2-bedroom rental at fair market rate. That translates to over $39 an hour in wages. You can read more about how Washingtonians are affected by the high costs of housing.

How to Hack Your Finances Around Housing Costs

So what can you actually do with this information? Start by getting clear on your own numbers.

Gaining clarity is the first step to reducing financial stress. Take a moment to check if you are overburdened by housing costs with some basic math:

(Monthly Rent ÷ Gross Monthly Income) x 100

For example, if your rent is $1,500 and your gross monthly income is $5,000, your ratio is 30%.

Under 30% (Ideal): You may not feel overburdened by housing costs and have money left for other bills and savings.
—30% to 50% (Rent-Burdened): You may feel financial strain and find it hard to save.
—Over 50% (Severely Rent-Burdened): High risk of not meeting your other financial obligations — you may struggle to pay for food, healthcare, or emergencies and be pushed into using credit cards, furthering the chances of acquiring more debt.

Wherever you fall, it’s okay. Now you know one possible reason why it’s been so hard to get ahead financially. Challenge yourself to get your housing costs closer to the ideal range. Closer is better than perfect.

You can start by considering taking on extra income, or cutting some discretionary expenses. Work towards a solution that is long-term and sustainable. Once you have a handle on how much you’re spending on housing, you may notice you have more money to go towards other priorities.

When so much about managing our money is overwhelming, how good would it feel to gain a little more control in this one area?

FAQ’s

What if my ratio comes back in the ‘Severely Rent-Burdened’ range? Is there any hope?

Absolutely — that number is simply information, not a judgement on you. It’s a starting point that helps identify exactly where to focus your energy, whether that’s exploring additional income, trimming discretionary spending, or eliminating debt faster than you thought possible. Working with a coach, you can build a sustainable plan to move forward.

I run my own small business and it’s difficult to calculate this ratio when my income varies so much month to month — how do I even get an accurate number?

Great question! Shoot to understand your average monthly income over the last 3–6 months as your baseline. If your income changes drastically seasonally, do this during the lean times and the strong ones and then find something in the middle. This gives you a realistic range to work with.

How would it feel to collaborate on making your life more affordable? Schedule your free 30-minute consultation!