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.
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1Reflects historical revisions due to
updated methodology. See more details in the methodology
section.
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