Most Affordable Markets Include Oklahoma City, Okla., Columbus, Ohio and Austin, Texas and Least Affordable Markets
Include Miami, Los Angeles and New
York
SANTA
CLARA, Calif., Sept. 19,
2024 /PRNewswire/ -- Despite seasonally driven
demand, rents across the U.S. dipped by $5 (or -0.3%) year-over-year and nationwide to a
median rent of $1,753, according to
the Realtor.com® August Rental Report released
today. Although affordability improved as a top-level trend,
affordability varies widely by metro area and did not improve
everywhere. This month's report looked at the rent burden across
the U.S. and found the most affordable rental markets include
Oklahoma City, Okla., Columbus, Ohio and Austin, Texas while the markets with the
biggest rental burden include Miami, Los
Angeles and New York.
"One way to think about housing affordability is to use the 30%
rule of thumb, where housing expenses including rent or mortgage,
utilities and HOAs or other fees should not exceed more than 30% of
your income," said Danielle Hale,
chief economist at Realtor.com®. "Amid easing rents and
growing incomes, rental affordability improved in a majority of
U.S. major metros compared to last year, and crucially, typical
asking rent is less than 30% of the typical household income
nationwide. Although this is great news for many renters, housing
affordability is still a challenge as rents are still considerably
higher than before the pandemic and still above the 30% threshold
in six of the metros Realtor.com examined."
In August 2024, nationwide rent
was more affordable than in the previous year. Renters earning the
typical household income devoted 25.1% of their income to lease a
typical for-rent home (vs. 25.9% in August
2023). As renting continues to be more affordable than
buying in all major U.S metros, buying a typical starter home with
0-2 bedrooms in August 2024 required
a devoted 38.5%* of a typical household income.
Affordability of Rentals
Compared to last August, the
nation's rental affordability has improved over the past year as
rent prices have dipped and typical incomes have grown. As long as
the trends of year-over-year rental declines and income growth
persist, we can anticipate ongoing improvement in rental
affordability over the course of the year.
Rental Markets with the Lowest Rental
Burden
Oklahoma City,
Okla., is the most affordable rental market in August 2024. Other top affordable rental markets
are found in America's heartland and include Columbus, Ohio, Austin, Texas, Minneapolis, Minn., and Kansas City, Kan.
- Oklahoma City, Okla. - Median
Rent - $1,040, Share of Income -
18.2%
- Columbus, Ohio - Median Rent -
$1,231, Share of Income - 18.9%
- Austin-Round Rock- Georgetown, Texas - Median Rent - $1,535, Share of Income - 19.5%
- Minneapolis, St. Paul -
Bloomington, Minn. Wis. -Median
Rent - $1,557, Share of Income
- 19.8%
- Kansas City, Mo. and Kan. -
Median Rent - $1,357, Share of Income
- 20.2%
Rental Markets with a Rental Burden Above 30% of
Income
Six of the top 50 metros had a rent share higher than
30% relative to the median household income. Miami was the least affordable rental market
in August 2024. Among these six markets, New York is the only area where the current
rent share of income is higher than at this time last year,
suggesting modest improvement in most of the areas where
affordability is most lacking.
- Miami-Fort Lauderdale-Pompano Beach, Fla. - Median Rent -
$2,388, Share of Income - 40.8%
- Los Angeles-Long
Beach-Anaheim, Calif. -
Median Rent - $2,885, Share of Income
- 38.7%
- New York-Newark-Jersey
City, N.Y.-N.J.-Pa. - Median Rent - $2,935, Share of Income - 38.1%
- San Diego-Chula Vista-Carlsbad, Calif. - Median Rent - $2,847, Share of Income - 35.0%
- Boston-Cambridge-Newton,
Mass.-N.H. - Median Rent - $3,022, Share of Income - 33.6%
- Riverside-San Bernardino-Ontario, Calif. - Median Rent - $2,176, Share of Income - 31.2%
Rental Markets with Most Improved
Affordability
Among the top 50 metros, 39 of them saw
affordability improvement in August
2024 compared to a year ago. Metros that experienced the
most pronounced improvements in affordability were notably
clustered in the South, where rents have shown a consistent
downward trend over the preceding months. The main factor behind
improved affordability in the South is the increase in new rental
supply which drives down rents.
The most significant improvement was seen in Miami and Tampa,
Fla., and San Diego, Calif.
Despite this improvement, the proportion of monthly household
income dedicated to rent in two of these three markets still
exceeded the 30% threshold, indicating rental affordability remains
an ongoing concern.
- Miami-Fort Lauderdale-Pompano Beach, Fla. - Median Rent -
$2,388, Share of Income - 40.8%,
Change from August 2024 to
August 2023 - -3.3 ppt
- Tampa-St. Petersburg-Clearwater, Fla. - Median Rent
-$1,733, Share of Income - 29.9%,
Change from August 2024 to
August 2023 - -2.8 ppt
- San Diego-Chula Vista-Carlsbad, Calif. - Median Rent - $2,847, Share of Income - 35.0%, Change
from August 2024 to August 2023 - -2.4 ppt
- Nashville-Davidson-Murfreesboro-Franklin, Tenn. - Median Rent - $1,595, Share of Income - 23.7%, Change from
August 2024 to August 2023 - -2.1 ppt
- Charlotte-Concord-Gastonia,
N.C.-S.C. - Median Rent - $1,538, Share of Income - 23.8%, Change from
August 2024 to August 2023 - -1.9 ppt
- Phoenix-Mesa-Chandler,
Ariz. - Median Rent - $1,565,
Share of Income - 24.7%, Change from August
2024 to August 2023 - -1.9
ppt
Rental Markets with Most Deteriorated
Affordability
Affordability eroded most in more
affordable Midwest markets such as St
Louis, Mo., Cincinnati,
Ohio and Minneapolis,
Minn., which saw faster rent growth. In fact, median asking
rents in these markets continue to rise in recent months,
suggesting an ongoing surge in demand within these budget-friendly
areas.
- St. Louis, Mo.-Ill. - Median
Rent - $1,363, Share of Income -
21.7%, Change from August 2024 to
August 2023 - 0.7 ppt
- Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va - Median Rent -
$2,319, Share of Income - 23.5%,
Change from August 2024 to
August 2023 - 0.6 ppt
- Cincinnati, Ohio-Ky.-Ind.
- Median Rent - $1,380, Share
of Income -21.6%, Change from August
2024 to August 2023 - 0.4
ppt
- New York-Newark-Jersey
City, N.Y.-N.J.-Pa. - Median Rent - $2,935, Share of Income - 38.1%, Change
from August 2024 to August 2023 - 0.4 ppt
- Minneapolis-St.
Paul-Bloomington,
Minn.-Wis. - Median Rent - $1,557, Share of Income - 19.8%, Change
from August 2024 to August 2023 - 0.3 ppt
National Trends
- August 2024 marks the 13th month
in a row of year-over-year rent decline for 0-2 bedroom properties
observed since trend data began in 2020. Asking rents dipped by
$5 or -0.3% year-over-year.
- The median asking rent in the 50 largest metros registered at
$1,753, down by $2 from last month and $7 lower than its August
2022 peak.
- Median rent declined in all size categories with larger
declines in smaller-sized units: Studio: $1,455, down $20
(-1.4%) year-over-year; 1-bed: $1,632, down $11
(-0.7%) year-over-year; 2-bed: $1,941, down $5
(-0.3%) year-over-year.
National Rental Data –
August 2024
|
Unit
Size
|
Median
Rent
|
Rent
YoY
|
Rent Change – 5
years
|
|
Overall
|
$1,753
|
-0.3 %
|
20.1 %
|
|
Studio
|
$1,455
|
-1.4 %
|
14.0 %
|
|
1-bed
|
$1,632
|
-0.7 %
|
18.2 %
|
|
2-bed
|
$1,941
|
-0.3 %
|
21.6 %
|
Rental Data – 50 Largest Metropolitan Areas – August 2024
|
Metro
|
Median Asking Rent
(0-2 Bedrooms)
|
YOY (0-2
Bedrooms)
|
Rent Share of
Income-August
2024
|
Rent Share of
Income-August
2023
|
|
Atlanta-Sandy
Springs-Roswell, GA
|
$1,636
|
-2.7 %
|
23.4 %
|
24.7 %
|
|
Austin-Round Rock,
TX
|
$1,535
|
-4.7 %
|
19.5 %
|
21.2 %
|
|
Baltimore-Columbia-Towson, MD
|
$1,844
|
0.4 %
|
23.6 %
|
23.6 %
|
|
Birmingham-Hoover,
AL
|
$1,241
|
-5.3 %
|
22.3 %
|
23.9 %
|
|
Boston-Cambridge-Newton, MA-NH
|
$3,022
|
-0.2 %
|
33.6 %
|
34.2 %
|
|
Buffalo-Cheektowaga-Niagara Falls, NY
|
NA
|
NA
|
NA
|
NA
|
|
Charlotte-Concord-Gastonia, NC-SC
|
$1,538
|
-3.1 %
|
23.8 %
|
25.7 %
|
|
Chicago-Naperville-Elgin, IL-IN-WI
|
$1,832
|
-2.0 %
|
25.8 %
|
27.0 %
|
|
Cincinnati,
OH-KY-IN
|
$1,380
|
2.4 %
|
21.6 %
|
21.2 %
|
|
Cleveland-Elyria,
OH
|
$1,249
|
0.6 %
|
22.1 %
|
23.7 %
|
|
Columbus, OH
|
$1,231
|
1.7 %
|
18.9 %
|
18.8 %
|
|
Dallas-Fort
Worth-Arlington, TX
|
$1,489
|
-3.3 %
|
21.5 %
|
22.6 %
|
|
Denver-Aurora-Lakewood,
CO
|
$1,920
|
-3.0 %
|
23.4 %
|
24.5 %
|
|
Detroit-Warren-Dearborn, MI
|
$1,326
|
0.0 %
|
22.1 %
|
22.6 %
|
|
Hartford-West
Hartford-East Hartford, CT
|
NA
|
NA
|
NA
|
NA
|
|
Houston-The
Woodlands-Sugar Land, TX
|
$1,391
|
-2.7 %
|
22.1 %
|
23.1 %
|
|
Indianapolis-Carmel-Anderson, IN
|
$1,324
|
1.3 %
|
20.7 %
|
21.8 %
|
|
Jacksonville,
FL
|
$1,559
|
-2.8 %
|
25.2 %
|
26.4 %
|
|
Kansas City,
MO-KS
|
$1,357
|
0.3 %
|
20.2 %
|
20.9 %
|
|
Las
Vegas-Henderson-Paradise, NV
|
$1,511
|
-0.7 %
|
26.3 %
|
26.6 %
|
|
Los Angeles-Long
Beach-Anaheim, CA
|
$2,885
|
0.0 %
|
38.7 %
|
40.0 %
|
|
Louisville/Jefferson
County, KY-IN
|
$1,292
|
0.8 %
|
22.3 %
|
22.4 %
|
|
Memphis,
TN-MS-AR
|
$1,230
|
-3.4 %
|
23.5 %
|
24.2 %
|
|
Miami-Fort
Lauderdale-West Palm Beach, FL
|
$2,388
|
-2.5 %
|
40.8 %
|
44.1 %
|
|
Milwaukee-Waukesha-West
Allis, WI
|
$1,685
|
1.2 %
|
27.3 %
|
27.5 %
|
|
Minneapolis-St.
Paul-Bloomington, MN-WI
|
$1,557
|
2.3 %
|
19.8 %
|
19.5 %
|
|
Nashville-Davidson–Murfreesboro–Franklin,
TN
|
$1,595
|
-4.7 %
|
23.7 %
|
25.8 %
|
|
New Orleans-Metairie,
LA
|
NA
|
NA
|
NA
|
NA
|
|
New York-Newark-Jersey
City, NY-NJ-PA
|
$2,935
|
0.9 %
|
38.1 %
|
37.7 %
|
|
Oklahoma City,
OK
|
$1,040
|
-1.2 %
|
18.2 %
|
18.7 %
|
|
Orlando-Kissimmee-Sanford, FL
|
$1,727
|
-0.8 %
|
29.0 %
|
30.6 %
|
|
Philadelphia-Camden-Wilmington,
PA-NJ-DE-MD
|
$1,814
|
-0.9 %
|
25.4 %
|
26.5 %
|
|
Phoenix-Mesa-Scottsdale, AZ
|
$1,565
|
-2.9 %
|
22.8 %
|
24.7 %
|
|
Pittsburgh,
PA
|
$1,459
|
3.9 %
|
24.3 %
|
24.1 %
|
|
Portland-Vancouver-Hillsboro, OR-WA
|
$1,756
|
2.4 %
|
23.0 %
|
23.3 %
|
|
Providence-Warwick,
RI-MA
|
NA
|
NA
|
NA
|
NA
|
|
Raleigh, NC
|
$1,564
|
-0.8 %
|
20.4 %
|
21.4 %
|
|
Richmond, VA
|
$1,533
|
-0.5 %
|
22.5 %
|
23.5 %
|
|
Riverside-San
Bernardino-Ontario, CA
|
$2,176
|
1.1 %
|
31.2 %
|
32.6 %
|
|
Rochester,
NY
|
NA
|
NA
|
NA
|
NA
|
|
Sacramento–Roseville–Arden-Arcade, CA
|
$1,986
|
3.9 %
|
26.1 %
|
26.7 %
|
|
San Antonio-New
Braunfels, TX
|
$1,279
|
-3.4 %
|
21.3 %
|
23.0 %
|
|
San Diego-Carlsbad,
CA
|
$2,847
|
-2.2 %
|
35.0 %
|
37.4 %
|
|
San
Francisco-Oakland-Hayward, CA
|
$2,837
|
-1.9 %
|
26.6 %
|
27.1 %
|
|
San
Jose-Sunnyvale-Santa Clara, CA
|
$3,398
|
2.9 %
|
26.6 %
|
26.7 %
|
|
Seattle-Tacoma-Bellevue, WA
|
$2,035
|
-2.4 %
|
22.0 %
|
23.5 %
|
|
St. Louis,
MO-IL
|
$1,363
|
2.9 %
|
21.7 %
|
21.0 %
|
|
Tampa-St.
Petersburg-Clearwater, FL
|
$1,733
|
-2.4 %
|
29.9 %
|
32.7 %
|
|
Virginia
Beach-Norfolk-Newport News, VA-NC
|
$1,548
|
-1.3 %
|
23.4 %
|
24.3 %
|
|
Washington-Arlington-Alexandria,DC-VA-MD-WV
|
$2,319
|
3.2 %
|
23.5 %
|
22.9 %
|
Methodology Note
* The monthly cost of buying a home
was calculated by averaging the median list prices of studio,
1-bed, and 2-bed homes, weighted by the number of listings, in each
housing market. Monthly buying costs assume an 8% down payment for
starter home buyers who are typically first-time buyers, with a
mortgage rate of 6.5%, and include taxes, insurance, and HOA
fees.
Rental data as of August 2024 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). We use rental
sources that reliably report data each month within the top 50
largest metropolitan areas. Realtor.com began publishing regular
monthly rental trends reports in October
2020 with data history stretching back to March 2019.
Rental affordability analysis: The affordable monthly rent is
calculated by applying the 30% rule to the estimated 2024 monthly
median household income nationwide ($6,985 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.
With the release of its August
2024 rent report, Realtor.com® incorporated a new and
improved methodology for capturing and reporting more comprehensive
rental listing trends and metrics. The new methodology is expected
to yield a cleaner, more representative and more consistent
measurement of rental listings and trends at both the national and
local level. The methodology has been adjusted to better represent
the true cost of primary housing for renters. Most areas across the
country will see minor changes with a smaller handful of areas
seeing larger updates. As a result of these changes, the rental
data released since August 2024 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.
About
Realtor.com®
Realtor.com® is an
open real estate marketplace built for everyone.
Realtor.com® pioneered the world of digital real
estate more than 25 years ago. Today, through its website and
mobile apps, Realtor.com® is a trusted guide for
consumers, empowering more people to find their way home by
breaking down barriers, helping them make the right connections,
and creating confidence through expert insights and guidance. For
professionals, Realtor.com® is a trusted partner
for business growth, offering consumer connections and branding
solutions that help them succeed in today's on-demand world.
Realtor.com® is operated by News Corp [Nasdaq:
NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more
information, visit Realtor.com®.
Media Contact: Mallory Micetich,
press@realtor.com
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