Realtor.com® August Rental Report: Americans Spend 26% of their Incomes on Rents
09/22/2022 - 06:00 AM
In August, the U.S. median rental price ($1,771) accounted for a higher share of a typical household ' s budget compared to one year ago (26.4% vs. 25.7% )
SANTA CLARA, Calif. , Sept. 22, 2022 /PRNewswire/ -- August data shows renters are feeling the strain of higher costs, as Americans spent more than one-quarter (26.4% ) of their monthly budgets on rents in August, on average, according to the Realtor.com® Monthly Rental Report released today. Among the 50 largest U.S. metros, coastal areas topped August' s list of least affordable rental markets, with rents accounting for the highest shares of household incomes in Miami (46.5% ), Los Angeles (40.7% ) and San Diego (37.1% ).
" Our analysis underscores the very real rental affordability challenges that many Americans face today. Rents are significantly higher than in previous years and are taking up a substantial portion of incomes, which are growing at a slower pace than inflation," said Realtor.com® Chief Economist Danielle Hale . " Still, there are some bright spots for renters as of late. Based on the general rule of thumb that you should keep housing costs to under 30% of your paycheck , renters were able to follow best practice in the majority of large metros in August. Plus, as rent growth continued to cool, national rents didn' t hit a new record-high for the first time in nine months.1 If these trends and typical seasonal cooling persist, renters may be better able to keep housing costs to a relatively manageable portion of their budgets in the months ahead."
Hale added, the U.S. median rental price declined for the first time since November 2021 in August, to $1,771 from $1,781 in July .1 Additionally, rent growth continued moderating on a year-over-year basis, down to a single-digit increase (+9.8% ) after 13 straight months at a double-digit pace. However, national rents remained more than 20% higher than in August 2020 overall (+22.8% ) and across all unit sizes: Studios at a median $1,489 (+21.2% ), one-beds at a median $1,653 (22.6% ), and two-beds at a median $1,964 (+23.2% ).
August 2022 Rental Metrics – National
Unit Size
Median Rent
Change over Aug. 2021
Change over Aug. 2020
Overall
$1,771
9.8 %
22.8 %
Studio
$1,489
11.8 %
21.2 %
1-bed
$1,653
9.3 %
22.6 %
2-bed
$1,964
9.1 %
23.2 %
Rental affordability worsens nationwide and especially in coastal metros
Despite the cooldown in annual rent growth, August data indicates that rental affordability issues are rising. Nationally, rents accounted for a higher share of renters' incomes in August compared to last year (26.4% vs. 25.7% , on average). Among the 50 largest U.S. metros, nine had a rent-to-income share that was higher than 30% , with coastal markets dominating the top 10 list of least affordable metros in August (see table below).
August 2022 Rental Metrics – Top 10 Least Affordable Markets, by Rent-to-Income Share
Rank
Metro
Aug.
2022
Rent
Share
Aug. 2022
Median
Rent
2022
Monthly
HH
Income
Aug. 2021
Rent
Share
Aug. 2021
Median
Rent
2021
Monthly
HH
Income
1
Miami, Fla.
46.5 %
$2,626
$5,641
43.1 %
$2,250
$5,216
2
Los Angeles, Calif.
40.7 %
$2,946
$7,234
40.2 %
$2,675
$6,648
3
San Diego, Calif.
37.1 %
$2,888
$7,792
36.0 %
$2,590
$7,186
4
New York, N.Y.
36.3 %
$2,807
$7,726
32.8 %
$2,362
$7,206
5
Boston, Mass.
35.1 %
$3,040
$8,654
30.7 %
$2,475
$8,065
6
Tampa, Fla.
32.9 %
$1,789
$5,433
33.9 %
$1,710
$5,050
7
Riverside, Calif.
32.4 %
$2,107
$6,508
35.4 %
$2,105
$5,947
8
Orlando, Fla.
32.0 %
$1,842
$5,766
30.1 %
$1,620
$5,377
9
Providence, R.I.
31.9 %
$2,035
$6,386
29.9 %
$1,758
$5,885
10
Chicago, Ill.
29.7 %
$2,061
$6,945
25.8 %
$1,650
$6,397
Middle-America offers renters relative affordability
Rental affordability did vary by location in August, with renters putting a relatively lower share of their paychecks towards rents in the vast majority of the largest metros. In fact, compared to the national rent-to-income share, rents were significantly more affordable in many markets in Middle America. Nevertheless, even in these areas, affordability has declined over the past year, with rental costs accounting for a higher share of incomes than in August 2021 in seven of the top 10 most affordable markets (see table below).
August 2022 Rental Metrics – Top 10 Most Affordable Markets, by Rent-to-Income Share
Rank
Metro
Aug.
2022
Rent
Share
Aug.
2022
Median
Rent
2022
Monthly
HH
Income
Aug.
2021
Rent
Share
Aug. 2021
Median
Rent
2021
Monthly
HH
Income
1
Oklahoma City, Okla.
17.5 %
$973
$5,570
16.7 %
$848
$5,083
2
Minneapolis, Minn.
20.1 %
$1,545
$7,674
20.8 %
$1,499
$7,199
3
St. Louis, Mo.
20.3 %
$1,246
$6,143
20.0 %
$1,153
$5,765
4
Kansas City, Mo.
20.6 %
$1,306
$6,347
19.5 %
$1,169
$6,004
5
Louisville, Ky.
20.6 %
$1,158
$5,625
19.1 %
$1,027
$5,372
6
Columbus, Ohio
20.7 %
$1,280
$6,189
20.2 %
$1,172
$5,811
7
Cincinnati, Ohio
21.3 %
$1,313
$6,159
20.6 %
$1,183
$5,749
8
Indianapolis, Ind.
21.7 %
$1,284
$5,917
21.0 %
$1,160
$5,519
9
Birmingham, Al.
21.9 %
$1,194
$5,445
20.7 %
$1,090
$5,258
10
Houston, Texas
22.3 %
$1,391
$6,238
22.5 %
$1,296
$5,750
With higher rents leaving less money in renters' pockets each month, more than half (60% ) of renters report that higher rents and household expenses are their biggest cause of financial strain, according to a recent survey from Avail (a part of Realtor.com® ). Through September 25th , renters who are struggling with higher costs can enter Realtor.com® ' s Free Rent Sweepstakes for a chance to win a $2,500 cash prize to put toward their monthly rent.
August 2022 Rental Metrics – 50 Largest U.S. Metro Areas
Metro
Overall Median Rent
Overall Rent YY
Studio Median Rent
Studio Rent YY
1-br Median Rent
1-br Rent YY
2-br Median Rent
2-br Rent YY
Atlanta-Sandy Springs-Roswell, Ga .
$1,760
4.2 %
$1,706
7.8 %
$1,659
3.8 %
$1,892
2.5 %
Austin-Round Rock, Texas
$1,765
9.5 %
$1,532
16.1 %
$1,617
8.7 %
$1,959
8.8 %
Baltimore-Columbia-Towson, Md.
$1,790
6.4 %
$1,591
6.6 %
$1,701
6.2 %
$1,912
7.5 %
Birmingham-Hoover, Ala.
$1,194
9.6 %
$965
-9.8 %
$1,137
8.1 %
$1,230
10.2 %
Boston-Cambridge-Newton, Mass.-N.H.
$3,040
22.8 %
$2,796
31.6 %
$2,787
18.6 %
$3,384
26.0 %
Buffalo-Cheektowaga-Niagara Falls, N.Y.
$1,291
8.0 %
$840
1.8 %
$1,188
11.3 %
$1,478
9.3 %
Charlotte-Concord-Gastonia, N.C.-S.C.
$1,631
7.9 %
$1,570
14.5 %
$1,537
10.2 %
$1,753
5.4 %
Chicago-Naperville-Elgin, Ill.-Ind.-Wisc.
$2,061
24.9 %
$1,761
52.8 %
$1,988
24.1 %
$2,276
21.1 %
Cincinnati, Ohio-Ky.-Ind.
$1,313
11.1 %
$1,182
11.0 %
$1,252
10.4 %
$1,352
6.3 %
Cleveland-Elyria, Ohio
$1,236
11.8 %
$918
15.5 %
$1,187
11.2 %
$1,385
15.1 %
Columbus, Ohio
$1,280
9.2 %
$1,058
5.8 %
$1,207
9.7 %
$1,356
7.1 %
Dallas-Fort Worth-Arlington, Texas
$1,609
11.4 %
$1,400
11.3 %
$1,497
12.7 %
$1,891
10.3 %
Denver-Aurora-Lakewood, Colo.
$1,977
5.1 %
$1,632
2.1 %
$1,842
4.1 %
$2,289
5.5 %
Detroit-Warren-Dearborn, Mich.
$1,302
8.7 %
$1,130
14.8 %
$1,145
10.4 %
$1,435
6.7 %
Hartford-West Hartford-East Hartford, Conn.
$1,661
10.8 %
$1,404
24.6 %
$1,487
5.1 %
$1,915
12.6 %
Houston-The Woodlands-Sugar Land, Texas
$1,391
7.4 %
$1,309
4.1 %
$1,280
7.7 %
$1,537
5.8 %
Indianapolis-Carmel-Anderson, Ind.
$1,284
10.7 %
$1,099
9.9 %
$1,212
13.2 %
$1,398
7.7 %
Jacksonville, Fla.
$1,474
5.5 %
$1,199
18.3 %
$1,373
4.8 %
$1,575
3.5 %
Kansas City, Mo.-Kan.
$1,306
11.7 %
$955
2.4 %
$1,234
13.5 %
$1,512
12.0 %
Las Vegas-Henderson-Paradise, Nev.
$1,541
2.3 %
$1,019
12.2 %
$1,429
3.2 %
$1,643
0.1 %
Los Angeles-Long Beach-Anaheim, Calif.
$2,946
10.1 %
$2,345
14.8 %
$2,716
8.8 %
$3,434
7.6 %
Louisville/Jefferson County, Ky.-Ind.
$1,158
12.8 %
$1,023
16.2 %
$1,091
11.0 %
$1,232
9.8 %
Memphis, Tenn.-Miss.-Ark.
$1,336
10.3 %
$1,206
11.2 %
$1,313
9.9 %
$1,373
9.8 %
Miami-Fort Lauderdale-West Palm Beach, Fla.
$2,626
16.7 %
$2,227
20.3 %
$2,355
17.7 %
$2,933
15.3 %
Milwaukee-Waukesha-West Allis, Wisc.
$1,538
8.7 %
$1,197
9.4 %
$1,423
9.2 %
$1,757
6.6 %
Minneapolis-St. Paul-Bloomington, Minn.-Wisc.
$1,545
3.1 %
$1,203
0.3 %
$1,459
1.9 %
$1,850
1.4 %
Nashville-Davidson–Murfreesboro–Franklin, Tenn.
$1,697
10.8 %
$1,645
4.6 %
$1,630
10.8 %
$1,777
13.0 %
New Orleans-Metairie, La.
$1,391
7.8 %
N/A
New York-Newark-Jersey City, N.Y.-N.J.-Penn.
$2,807
18.9 %
$2,553
22.3 %
$2,498
15.0 %
$3,107
16.2 %
Oklahoma City, Okla.
$973
14.9 %
$867
23.8 %
$828
10.4 %
$1,050
17.4 %
Orlando-Kissimmee-Sanford, Fla.
$1,842
13.8 %
$1,636
13.1 %
$1,731
14.4 %
$2,056
13.3 %
Philadelphia-Camden-Wilmington, Penn.-N.J.-Del.-M.D.
$1,767
8.4 %
$1,466
14.1 %
$1,716
7.9 %
$1,889
3.4 %
Phoenix-Mesa-Scottsdale, Ariz.
$1,647
2.1 %
$1,299
4.1 %
$1,543
2.2 %
$1,784
-1.2 %
Pittsburgh, Penn.
$1,524
9.3 %
$1,373
11.0 %
$1,498
10.5 %
$1,552
2.9 %
Portland-Vancouver-Hillsboro, Ore.-Wash.
$1,847
9.1 %
$1,463
5.7 %
$1,760
7.9 %
$2,101
9.9 %
Providence-Warwick, R.I.-Mass.
$2,035
15.8 %
N/A
Raleigh, N.C.
$1,651
12.2 %
$1,515
10.9 %
$1,536
12.8 %
$1,803
9.4 %
Richmond, Va.
$1,405
9.4 %
$1,260
15.6 %
$1,321
12.4 %
$1,549
7.6 %
Riverside-San Bernardino-Ontario, Calif.
$2,107
0.1 %
$1,321
-6.2 %
$1,905
1.1 %
$2,401
0.8 %
Rochester, N.Y.
$1,309
8.8 %
$1,094
25.8 %
$1,206
10.9 %
$1,507
12.9 %
Sacramento–Roseville–Arden-Arcade, Calif.
$1,955
3.2 %
$1,550
-7.2 %
$1,788
1.3 %
$2,065
3.4 %
San Antonio-New Braunfels, Texas
$1,294
9.8 %
$1,041
0.4 %
$1,216
10.6 %
$1,466
8.5 %
San Diego-Carlsbad, Calif.
$2,888
11.5 %
$2,339
11.5 %
$2,719
10.7 %
$3,221
11.4 %
San Francisco-Oakland-Hayward, Calif.
$3,134
8.6 %
$2,629
10.5 %
$2,860
6.5 %
$3,655
9.6 %
San Jose-Sunnyvale-Santa Clara, Calif.
$3,353
11.9 %
$2,675
11.7 %
$3,111
11.7 %
$3,780
11.3 %
Seattle-Tacoma-Bellevue, Wash.
$2,195
6.8 %
$1,820
9.9 %
$2,173
5.1 %
$2,504
9.1 %
St. Louis, Mo.-Ill.
$1,246
8.1 %
$993
4.4 %
$1,201
6.7 %
$1,316
6.1 %
Tampa-St. Petersburg-Clearwater, Fla.
$1,789
4.6 %
$1,753
11.3 %
$1,668
3.4 %
$1,929
1.5 %
Virginia Beach-Norfolk-Newport News, Va.-N.C.
$1,417
5.5 %
$1,285
10.7 %
$1,382
5.2 %
$1,451
1.2 %
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.
$2,199
8.0 %
$1,815
8.6 %
$2,099
7.8 %
$2,547
6.1 %
*Unit-specific metrics for New Orleans and Providence, R.I. excluded while rental data is under review.
Methodology
Rental data as of August 2022 for units advertised as for-rent on Realtor.com® . Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, 1-bedroom, or 2-bedroom units. National rents were calculated by averaging the medians of the 50 largest U.S. metropolitan areas, as defined by the Office of Management and Budget (OMB). Realtor.com® began publishing regular monthly rental trends reports in October 2020 with data history going back to March 2019 .
Rental affordability analysis : The affordable monthly rent is calculated by applying the 30% rule to the estimated 2022 monthly median household income nationwide ($6,716 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 below, Realtor.com has made historical revisions to its prior affordability analyses. For our most recently published affordability analysis on February 2022 data published in March 2022 , the national rent-to-income share has been updated to 25.0% .
Note on new methodology : With the release of its August 2022 Monthly Rental Report, Realtor.com® incorporated a new and improved methodology for capturing and reporting rental listing trends and metrics. As a result of these changes, the rental data released since September 2022 will not be directly comparable with previous releases, but future data releases, including historical data, will consistently apply the new methodology. See more details here .
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 ® .
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1 Reflects historical revisions due to updated methodology. See more details in the methodology section.
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