Press release
Realtor.com® August Rental Report: Rental Affordability Has Generally Improved In Most Major U.S. Markets
Most Affordable Markets Include Oklahoma City, Okla., Columbus, Ohio and Austin, Texas and Least Affordable Markets Include Miami, Los Angeles and New York
About this update from News Corporation
[{"type":"text","content":"Most Affordable Markets Include Oklahoma City, Okla., Columbus, Ohio and Austin, Texas and Least Affordable Markets Include Miami, Los Angeles and New York \nSANTA 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.\n\n\"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.\"\nIn 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.\nAffordability of RentalsCompared 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.\nRental Markets with the Lowest Rental Burden Oklahoma City, Okla., is the ...