Currently Reading

The Most and Least Affordable Cities for Renters

Advertisement
Housing Markets

The Most and Least Affordable Cities for Renters


September 9, 2021
apt buildings
Photo: jjfarq | stock.adobe.com

About 8.8 million Americans were behind on rent payments as of December last year, according to data from the Consumer Financial Protection Bureau. For a one-bedroom apartment, average rents range from $2,756 to just $692, according to an analysis by SmartAsset. When housing costs should account for 30% of income, it can be difficult to keep up in areas where the rent-to-income ratio is high. SmartAsset’s analysis reviewed income and rents across the country’s largest 25 cities to find the most and least affordable cities for renters. Coming in as the most expensive city was San Francisco, with an average monthly one-bed rent for $2,756 and two-bed rent for $3,668.

Key Findings

Income needed varies by more than a factor of four. In the city with most expensive two-bedroom apartment rent – San Francisco, California – the income needed to cover rent ($157,218) is about 4.3 times more than the income needed to cover rent in the city with the least expensive two-bedroom rent – El Paso, Texas ($36,550).

Median income falls short for a two-bedroom apartment in about 50% of cities. In 12 of the 25 big cities we analyzed, the median household income is not enough to cover the average annual rent for a two-bedroom apartment assuming a 28% rent-to-income ratio.

1. San Francisco, CA

Zumper data shows that the average monthly rent for a two-bedroom apartment in San Francisco, California is $3,668 (more than $44,000 per year). Assuming a maximum rent-to-income ratio of 28%, renters in San Francisco will need to earn $157,218 per year to avoid being burdened by housing costs. By comparison, the median household income in San Francisco is less than $124,000.

2. Washington, DC

The income needed for a two-bedroom apartment in Washington, D.C. is $120,457. Average monthly rent in this city for a two-bedroom apartment is $2,811, which amounts to $33,728 per year. While the median household income in the city ($92,266) is not enough to cover this amount, it is enough to afford the income needed for a one-bedroom apartment ($87,893).

Read More
 

Related Stories

Market Data + Trends

September Reports Increased Home Sales

Monthly home sales rebounded in September after August decline.

Housing Markets

Midsize Cities Are Becoming Hot Housing Markets

How cities like Manchester, New Hampshire are pulling in more homebuyers.

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.