Metros Where Homeowners and Renters Have the Largest Wage Gaps

While it may be unsurprising that homeowners earn more on average than the typical renter, the wage gap between the two has grown significantly over the years. According to the National Association of Realtors, as of most recent 2024 data, the median income of homeowners is $100,700 compared with the $54,400 median income earned by renters. Those incomes equate to a wage gape of more than 85%. 

The largest wage gaps between renters and homeowners are in small to mid-size cities

Some of the largest income gaps can be found in college towns. For instance, the wage difference between renters and homeowners in Iowa City, Iowa, is 195%, and in Champaign-Urbana, Ill., the wage gap is 191%. According to the report, these high wage gaps are likely a result of the large student populations in these areas, which tend to earn far less on average.

Still, other mid-size and small cities show similar gaps. In Springfield, Mass., for instance, homeowners earn about 171% more than renters.

On the other hand, larger, more expensive cities tend to have smaller wage gaps

Large, more traditionally expensive cities tend to have smaller wage gaps between homeowners and renters, and that is likely because costs are high for both groups, meaning they need to earn more to afford renting or buying a home. For instance, in San Jose, homeowners earn 71% more than renters, and in San Francisco, the wage gap is at 88%, just slightly higher than the national median.

However, the smallest gaps are seen in retirement and Sun Belt communities, with several Florida markets taking the lead. In Punta Gorda, Fla., homeowners earn only about 19% more than renters, and in Ocala, Fla., the difference is 36%.