The least affordable metros where people spend
more than 30% of their salary on rent are: Miami, Los
Angeles, New York,
San Diego, Riverside, Calif., Boston, Orlando and Tampa
SANTA
CLARA, Calif., March 21,
2023 /PRNewswire/ -- While inflation has begun to
ease slightly, one area continues to become less affordable for
Americans – paying the rent. The Realtor.com® February
Rental Report found that despite a slight decrease in rent prices,
affordability continued to get worse in 26 major metros.
In February, the median rent in the 50 largest metros declined
to $1,716, down $1 from last month and $48 from the peak. However, rents are still up
3.1% from one year ago, making rental payments less affordable.
Renters earning the typical household income devoted 25.3% of their
income to lease a typical for-rent home, up from 24.8% a year
ago.
"The general rule of thumb is that you shouldn't spend more than
30% of your income on housing, but the data shows that in eight of
the 50 largest metros, many renters are doing just that," said
Realtor.com® Chief Economist Danielle Hale. "Slowing rental price growth is a
positive for renters, but it's important to put this in context.
This means that affordability is worsening at a slower pace in many
markets; it's not getting better."
The pace of rent growth has slowed for the past 13 months and
experienced single-digit growth for the past seven months. Despite
this, rent prices are still $296
(20.8%) higher than the same time in 2020 (pre-pandemic).
Least affordable rental markets in Feb. 2023:
- Miami-Fort Lauderdale-West
Palm Beach, Fla. – $2,349
or 42.3% of income
- Los Angeles-Long
Beach-Anaheim,
Calif. – $2,864 or 39.2%
of income
- New York-Newark-Jersey
City, N.Y.-N.J.-Pa. – $2,895 or 37.5% of income
- San Diego-Carlsbad, Calif. – $2,844 or 36.6% of income
- Riverside-San Bernardino-Ontario, Calif. – $2,145 or 32.5% of income
- Boston-Cambridge-Newton,
Mass.-N.H. – $2,829 or
32.0% of income
- Orlando-Kissimmee-Sanford,
Fla. – $1,769 or 31.1% of
income
- Tampa-St. Petersburg-Clearwater, Fla. –
$1,691 or 31.1% of income
Head inland to find affordability
All eight of the
most rent-burdened metros are located along the coast with Fla.
(three markets) and Calif. (three markets) leading the pack. On the
other hand, the American Heartland led the way in terms of
affordability. Oklahoma City,
Okla. was the most affordable rental market in February with
residents paying 17.4% of income on rent, followed by Columbus, Ohio (18.2%), Minneapolis, Minn. (19.0%), Cincinnati, Ohio (19.4%), and Kansas City, Mo. (19.8%).
"While these American Heartland markets still offer relative
affordability, they are not immune to price hikes. As we saw in the
January Rental Report, these markets are experiencing some of the
fastest year-over-year price growth in the country," said
Hannah Jones, economic research
analyst, Realtor.com®. "Before signing a lease, it's
important to take a good look at your monthly income and expenses
and make sure that the payments won't stretch your budget too
much."
Rental Data – 50 Largest Metropolitan Areas – Feb. 2023
Metro
|
Overall Median
Rent
|
Overall Rent
YY
|
Feb. 2023 Rent
Share of Income
|
Feb. 2022 Rent
Share of Income
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$1,668
|
-1.3 %
|
24.5 %
|
25.5 %
|
Austin-Round Rock,
Texas
|
$1,644
|
-2.0 %
|
21.7 %
|
22.1 %
|
Baltimore-Columbia-Towson, Md.
|
$1,817
|
2.6 %
|
23.3 %
|
23.4 %
|
Birmingham-Hoover,
Ala.
|
$1,213
|
9.4 %
|
22.2 %
|
20.4 %
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$2,829
|
6.8 %
|
32.0 %
|
30.6 %
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
NA
|
NA
|
NA
|
NA
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$1,570
|
1.3 %
|
25.4 %
|
25.4 %
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wisc.
|
$1,818
|
5.2 %
|
26.2 %
|
24.9 %
|
Cincinnati,
Ohio-Ky.-Ind.
|
$1,233
|
8.6 %
|
19.4 %
|
18.4 %
|
Cleveland-Elyria,
Ohio
|
$1,167
|
-0.4 %
|
22.2 %
|
22.3 %
|
Columbus,
Ohio
|
$1,175
|
4.1 %
|
18.2 %
|
18.2 %
|
Dallas-Fort
Worth-Arlington, Texas
|
$1,532
|
0.7 %
|
22.5 %
|
22.5 %
|
Denver-Aurora-Lakewood,
Colo.
|
$1,893
|
0.6 %
|
23.4 %
|
23.6 %
|
Detroit-Warren-Dearborn, Mich.
|
$1,341
|
8.0 %
|
22.9 %
|
21.3 %
|
Hartford-West
Hartford-East Hartford, Conn.
|
NA
|
NA
|
NA
|
NA
|
Houston-The
Woodlands-Sugar Land, Texas
|
$1,388
|
3.4 %
|
22.4 %
|
21.5 %
|
Indianapolis-Carmel-Anderson, Ind.
|
$1,325
|
11.8 %
|
22.1 %
|
20.0 %
|
Jacksonville,
Fla.
|
$1,465
|
1.2 %
|
24.1 %
|
23.9 %
|
Kansas City,
Mo.-Kan.
|
$1,279
|
6.4 %
|
19.8 %
|
18.9 %
|
Las
Vegas-Henderson-Paradise, Nev.
|
$1,572
|
-3.9 %
|
27.5 %
|
28.0 %
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$2,864
|
0.9 %
|
39.7 %
|
39.2 %
|
Louisville/Jefferson
County, Ky.-Ind.
|
$1,226
|
7.2 %
|
21.4 %
|
20.3 %
|
Memphis,
Tenn.-Mo.-Ark.
|
$1,302
|
3.5 %
|
24.7 %
|
24.8 %
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$2,349
|
3.7 %
|
42.3 %
|
40.2 %
|
Milwaukee-Waukesha-West
Allis, Wisc.
|
$1,552
|
7.2 %
|
25.7 %
|
24.1 %
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wisc.
|
$1,487
|
2.9 %
|
19.0 %
|
18.8 %
|
Nashville-Davidson–Murfreesboro–Franklin,
Tenn.
|
$1,557
|
-0.8 %
|
24.0 %
|
24.1 %
|
New Orleans-Metairie,
La.
|
NA
|
NA
|
NA
|
NA
|
New York-Newark-Jersey
City, N.Y.-N.J.-Penn.
|
$2,895
|
12.2 %
|
37.5 %
|
33.4 %
|
Oklahoma City,
Okla.
|
$980
|
10.9 %
|
17.4 %
|
15.9 %
|
Orlando-Kissimmee-Sanford, Fla.
|
$1,769
|
3.2 %
|
31.1 %
|
29.7 %
|
Philadelphia-Camden-Wilmington,
Penn.-N.J.-Del.-Md.
|
$1,814
|
1.8 %
|
26.2 %
|
26.2 %
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,571
|
-3.9 %
|
24.1 %
|
25.7 %
|
Pittsburgh,
Penn.
|
$1,452
|
7.6 %
|
24.9 %
|
23.1 %
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$1,738
|
5.0 %
|
23.6 %
|
22.6 %
|
Providence-Warwick,
R.I.-Mass.
|
NA
|
NA
|
NA
|
NA
|
Raleigh,
N.C.
|
$1,510
|
0.4 %
|
20.5 %
|
20.5 %
|
Richmond,
Va.
|
$1,442
|
4.6 %
|
22.0 %
|
21.9 %
|
Riverside-San
Bernardino-Ontario, Calif.
|
$2,145
|
-2.0 %
|
32.5 %
|
33.6 %
|
Rochester,
N.Y.
|
NA
|
NA
|
NA
|
NA
|
Sacramento–Roseville–Arden-Arcade, Calif.
|
$1,875
|
-1.2 %
|
26.2 %
|
26.7 %
|
San Antonio-New
Braunfels, Texas
|
$1,346
|
5.4 %
|
23.4 %
|
22.2 %
|
San Diego-Carlsbad,
Calif.
|
$2,844
|
3.0 %
|
36.6 %
|
35.4 %
|
San
Francisco-Oakland-Hayward, Calif.
|
$2,896
|
0.5 %
|
27.1 %
|
27.1 %
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$3,309
|
5.9 %
|
26.8 %
|
25.9 %
|
Seattle-Tacoma-Bellevue, Wash.
|
$2,058
|
0.9 %
|
23.2 %
|
23.3 %
|
St. Louis,
Mo.-Ill.
|
$1,307
|
7.6 %
|
20.8 %
|
19.8 %
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$1,691
|
-2.0 %
|
31.1 %
|
31.7 %
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$1,415
|
4.2 %
|
21.9 %
|
21.8 %
|
Washington-Arlington-Alexandria,
D.C.-Va.-Md.-W.V.
|
$2,116
|
5.1 %
|
21.5 %
|
20.9 %
|
Methodology Overview*
Rental data as of February for
studio, 1-bedroom, or 2-bedroom units advertised as for-rent on
Realtor.com®. Rental units include apartments as well as
private rentals (condos, townhomes, single-family homes). With the
release of its February rent report, Realtor.com®
incorporated a new and improved methodology for capturing and
reporting more comprehensive rental listing trends and metrics. As
a result of these changes, the rental data released since
February 2023 will not be directly
comparable with previous releases and Realtor.com®
economics blog posts. However, future data releases, including
historical data, will consistently apply the new methodology.
Rental affordability analysis: The affordable monthly rent is
calculated by applying the 30% rule to the estimated 2023 monthly
median household income nationwide ($6,793 across the 50 largest U.S. metros, on
average) and in each metro. The monthly median household income is
derived from the annual median household income data sourced from
Claritas. Due to the methodology changes noted, Realtor.com has
made historical revisions to its prior affordability analyses. For
our most recently published affordability analysis on August 2022 data published in September 2022, the national rent-to-income share
has been updated to 26.2%.
*See report for fully detailed methodology
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