Because average rent is pretty close to minimum rent anyway. Landlords charge “what the market will bear”, which means there’s not really much difference in price across the city. Sure some people will pay a premium for fancy housing, but they aren’t getting minimum wage anyway.
Because average rent is pretty close to minimum rent anyway.
That’s not correct. In a town with three houses for rent ($500, $1000, $1500), the average rent will be $1000.
I agree with the user above: if we’re comparing wages and rent, then at least compare the deciles appropriately. For example, the lower fifth decile with minimum wage. It could be proportional to the number of people in the area on minimum wage.
Why do people always compare minimum wage to average rent it makes no sense
Because average rent is pretty close to minimum rent anyway. Landlords charge “what the market will bear”, which means there’s not really much difference in price across the city. Sure some people will pay a premium for fancy housing, but they aren’t getting minimum wage anyway.
That’s not correct. In a town with three houses for rent ($500, $1000, $1500), the average rent will be $1000.
I agree with the user above: if we’re comparing wages and rent, then at least compare the deciles appropriately. For example, the lower fifth decile with minimum wage. It could be proportional to the number of people in the area on minimum wage.
I think he meant it should be median, not average.