In February, national rents grew 17.1%
year-over-year to a new high of $1,792 per month, representing a higher share of
household incomes (29.7%) than in 2021 (24.8%)
SANTA CLARA, Calif.,
March 23, 2022 /PRNewswire/
-- New rental data shows affordability issues are on the rise,
as Americans spent 30% of their monthly budgets on rents in
February on average, according to the Realtor.com®
Monthly Rental Report released today. February rents accounted for
an even higher portion of household incomes in 14 of the 50 largest
U.S. markets, with the list of least affordable areas dominated by
Sun Belt metros like Miami,
Tampa, Fla. and San Diego, Calif.
In February, the U.S. median rental price hit a new high of
$1,792 and soared by double-digit
percentages (+17.1% year-over-year) for the seventh month in a row.
Among unit sizes, studio rents increased at the fastest annual
pace, up 17.1% (+$215) to a median of $1,474. Larger unit rents also posted
double-digit gains over February
2021: 1-bedrooms, up 16.4% (+$232) to $1,648; and 2-bedrooms, up 16.2% ($278) to $2,002.
"Whether it's rent or mortgage payments, the general rule of
thumb is to keep monthly housing costs to less than 30% of your
income. And with rents surging nationwide, February data indicates
that many renters' budgets may be stretched beyond the
affordability limit," said Realtor.com® Chief Economist
Danielle Hale. "With rents up by
nearly 20% over the past two years, rental prices are likely to
remain high, but we do expect some cooling from the recent
accelerated pace. In light of mounting economic uncertainties and
the conflict in Ukraine, some
households will prefer to buy, in an effort to lock-in a largely
fixed monthly payment as a hedge against further inflation. But
fast-rising mortgage rates and still-limited numbers of homes for
sale could mean some would-be buyers may stick with the flexibility
of renting. With rental demand already outmatching supply, rental
affordability will remain a challenge. For renters eager to make
the transition to first-time buying, finding a relatively
affordable rental is key to saving for a downpayment. Tools like
the Realtor.com® Rent vs. Buy Calculator can help you
frame the numbers in a meaningful way and make the choice that is
right for you."
February 2022 Rental Metrics –
National
Unit
Size
|
Median
Rent
|
Change over Feb.
2021
|
Change over Feb.
2020
|
Overall
|
$1,792
|
17.1%
($261)
|
18.8%
($283)
|
Studio
|
$1,474
|
17.1%
($215)
|
11.7%
($154)
|
1-bed
|
$1,648
|
16.4%
($232)
|
17.1%
($241)
|
2-bed
|
$2,002
|
16.2%
($278)
|
21.2%
($350)
|
Affordability issues soar nationwide, led by Sun Belt
metros
February data indicates that rents are increasingly
straining Americans' budgets, representing roughly 30% of typical
household incomes. Year-over-year rent growth in February 2022 was four-times higher when compared
to March 2020, before the onset of
COVID, highlighting limited supply relative to demand. The
acceleration in rents is largely driven by a growing segment of
young households, many of whom are turning to renting in the face
of the for-sale inventory crunch, record-high listing prices and
climbing mortgage rates. In turn, many of the least affordable
rental markets are also some of the most competitive areas for
buying. These trends are illustrated in Sun Belt metros like
Miami, Tampa and San
Diego, which topped February's lists of fastest-growing and
least affordable rental markets, as well as the hottest homebuying
destinations.
- February rents made up 29.7% of the typical household income in
the 50 largest U.S. metros, a higher share than during the same
month in 2021 (25.3%). The rental share of income was even greater
in 14 of these markets, led by Miami, at 59.5%; Los
Angeles, at 46.0%; and Riverside,
Calif., at 45.9% (see table below).
- Representing nearly half of the country's largest markets, the
Sun Belt claimed half of February's least affordable areas and all
10 of the fastest-growing rental markets, including four in
Florida. The state's low vacancy
rates highlight rising rental affordability, with the Florida supply of vacant rental units (6.6%)
declining drastically since 2009 (17.9%).
- In Miami, the median rental
price spiked 55.3% year-over-year in February, bringing it to the
top of February's least affordable markets. Although buying a
starter home is more affordable than renting one in Miami, the local for-sale home market is also
exploding. Compared to February 2021,
listing prices were up 31.6% in Miami, which jumped 25 spots on the latest
Realtor.com® Hottest Markets Ranking.
Least Affordable Rental Markets (Feb.
2022)
Rank
|
Metro
Area
|
Median
Rent
|
Rental Share
of Income
|
Rental
Share
of Income
YoY
|
Maximum
Affordable Rent
|
1
|
Miami,
Fla.
|
$2,929
|
59.5%
|
37.8%
|
$1,476
|
2
|
Los Angeles,
Calif.
|
$2,993
|
46.0%
|
39.1%
|
$1,952
|
3
|
Riverside,
Calif.
|
$2,678
|
45.9%
|
40.5%
|
$1,752
|
4
|
Tampa,
Fla.
|
$2,098
|
44.7%
|
33.1%
|
$1,407
|
5
|
San Diego,
Calif.
|
$3,008
|
42.9%
|
35.0%
|
$2,105
|
6
|
New York,
N.Y.
|
$2,725
|
40.9%
|
36.7%
|
$1,997
|
7
|
Las Vegas,
Nev.
|
$1,600
|
39.6%
|
30.9%
|
$1,213
|
8
|
New Orleans,
La.
|
$1,725
|
37.2%
|
32.5%
|
$1,392
|
9
|
Orlando,
Fla.
|
$1,843
|
36.7%
|
26.8%
|
$1,506
|
10
|
Phoenix,
Ariz.
|
$1,855
|
34.7%
|
27.9%
|
$1,628
|
11
|
Sacramento,
Calif.
|
$2,029
|
31.8%
|
28.6%
|
$1,912
|
12
|
Memphis,
Tenn.
|
$1,385
|
31.4%
|
25.3%
|
$1,324
|
13
|
Cleveland,
Ohio
|
$1,378
|
30.7%
|
29.2%
|
$1,345
|
14
|
San Francisco,
Calif.
|
$2,970
|
30.5%
|
28.2%
|
$2,921
|
Middle America rental markets offer relative
affordability
Although rental affordability is dwindling at
the national level, February data offers some good news for some
renters, depending on where they live. In many large markets in
Middle America, for instance, February rents came in below the
recommended max share of monthly paychecks. Additionally, the area
accounted for more than half of February's most affordable rental
markets, including Kansas City,
Oklahoma City and St. Louis. Still, with February rent growth
outpacing incomes even in these relatively affordable areas,
renters devoted more of their monthly paychecks towards housing
costs than in 2021.
- After making a swift recovery from earlier COVID setbacks,
rents grew over 2021 in each of the 50 largest U.S. metros in
February, up by double-digits in 39 markets. February rent growth
was in single-digit territory in the remaining 11 metros, keeping
rental costs to a lower share of incomes in many of these
areas.
- At No. 8 on the February list of most affordable rental
markets, Minneapolis posted the
country's second lowest annual rental price gains, up just 4.5%
year-over-year. Compared to a metro like Miami, where rental affordability has dropped
dramatically, Minneapolis rents
were significantly lower in February ($1,558 vs. $2,929).
- In February, Middle America dominated the top 10 list of most
affordable rental markets, with rents taking up less than 30% of
typical household incomes in metros like Kansas City, at 19.9%; Oklahoma City, at 21.1%; and St. Louis, at 22.3%.
- At the same time, with housing affordability declining and
mortgage rates climbing nationwide, Middle America renters might
consider putting their monthly savings on rent towards buying a
first home. In the No. 1 most affordable rental market of
Kansas City, monthly starter home
costs were 21.7% lower than rents in January, but also grew
double-digits over 2021.
Most Affordable Rental Markets (Feb.
2022)
Rank
|
Metro
Area
|
Median
Rent
|
Rental Share
of Income
|
Rental
Share
of Income
YoY
|
Maximum
Affordable Rent
|
1
|
Kansas City,
Mo.
|
$1,216
|
19.9%
|
18.2%
|
$1,832
|
2
|
Oklahoma City,
Okla.
|
$923
|
21.1%
|
19.0%
|
$1,314
|
3
|
Denver,
Colo.
|
$1,921
|
21.9%
|
19.0%
|
$2,631
|
4
|
St. Louis,
Mo.
|
$1,299
|
22.3%
|
20.7%
|
$1,749
|
5
|
Washington,
D.C.
|
$2,078
|
22.7%
|
20.4%
|
$2,746
|
6
|
Indianapolis,
Ind.
|
$1,215
|
23.0%
|
20.7%
|
$1,587
|
7
|
Louisville,
Ky.
|
$1,200
|
23.0%
|
20.5%
|
$1,564
|
8
|
Minneapolis,
Minn.
|
$1,558
|
23.0%
|
22.1%
|
$2,028
|
9
|
Houston,
Texas
|
$1,420
|
23.4%
|
21.1%
|
$1,823
|
10
|
Raleigh,
N.C.
|
$1,561
|
23.5%
|
19.9%
|
$1,990
|
January 2022 Rental Metrics –
50 Largest U.S. Metros*
Metropolitan
Statistical Area
|
Overall Median
Rent
|
Overall
Rent YoY
|
Studio
Median Rent
|
Studio
Rent YoY
|
1-br
Median
Rent
|
1-br
Rent
YoY
|
2-br
Median
Rent
|
2-br Rent
YoY
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$1,812
|
19.6%
|
$1,684
|
19.3%
|
$1,685
|
19.7%
|
$2,000
|
18.7%
|
Austin-Round Rock,
Texas
|
$1,773
|
28.1%
|
$1,420
|
20.8%
|
$1,630
|
28.7%
|
$1,925
|
24.4%
|
Baltimore-Columbia-Towson, Md.
|
$1,770
|
13.5%
|
$1,479
|
12.3%
|
$1,699
|
15.6%
|
$1,850
|
10.8%
|
Birmingham-Hoover,
Ala.
|
$1,185
|
9.2%
|
$1,040
|
6.9%
|
$1,117
|
5.3%
|
$1,258
|
11.7%
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
$1,295
|
10.0%
|
$1,095
|
46.0%
|
$1,158
|
12.2%
|
$1,390
|
6.1%
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$1,621
|
19.7%
|
$1,481
|
21.6%
|
$1,528
|
19.5%
|
$1,777
|
17.3%
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$1,817
|
10.1%
|
$1,328
|
3.1%
|
$1,811
|
13.2%
|
$2,000
|
4.7%
|
Cincinnati,
Ohio-Ky.-Ind.
|
$1,395
|
7.8%
|
$1,133
|
9.5%
|
$1,346
|
9.1%
|
$1,508
|
3.4%
|
Cleveland-Elyria,
Ohio
|
$1,378
|
6.0%
|
$965
|
7.9%
|
$1,319
|
6.5%
|
$1,500
|
8.7%
|
Columbus,
Ohio
|
$1,249
|
11.7%
|
$1,028
|
3.6%
|
$1,157
|
10.9%
|
$1,358
|
9.7%
|
Dallas-Fort
Worth-Arlington, Texas
|
$1,610
|
20.2%
|
$1,353
|
19.5%
|
$1,475
|
22.9%
|
$1,900
|
21.9%
|
Denver-Aurora-Lakewood, Colo.
|
$1,921
|
15.7%
|
$1,612
|
16.6%
|
$1,801
|
15.4%
|
$2,241
|
17.7%
|
Detroit-Warren-Dearborn, Mich.
|
$1,373
|
4.2%
|
$1,074
|
3.3%
|
$1,147
|
4.7%
|
$1,500
|
1.9%
|
Hartford-West
Hartford-East Hartford, Conn.
|
$1,648
|
13.3%
|
$1,480
|
36.8%
|
$1,488
|
8.6%
|
$1,888
|
15.6%
|
Houston-The
Woodlands-Sugar Land, Texas
|
$1,420
|
13.8%
|
$1,308
|
13.3%
|
$1,295
|
15.9%
|
$1,598
|
14.4%
|
Indianapolis-Carmel-Anderson, Ind.
|
$1,215
|
10.9%
|
$1,040
|
11.2%
|
$1,117
|
8.3%
|
$1,349
|
12.5%
|
Jacksonville,
Fla.
|
$1,570
|
24.9%
|
$1,155
|
7.0%
|
$1,455
|
23.1%
|
$1,708
|
26.5%
|
Kansas City,
Mo.-Kan.
|
$1,216
|
11.1%
|
$1,029
|
8.9%
|
$1,077
|
11.8%
|
$1,401
|
11.8%
|
Las
Vegas-Henderson-Paradise, Nev.
|
$1,600
|
25.1%
|
$1,254
|
8.1%
|
$1,505
|
29.4%
|
$1,716
|
26.8%
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$2,993
|
20.1%
|
$2,218
|
19.9%
|
$2,751
|
24.3%
|
$3,402
|
17.4%
|
Louisville/Jefferson
County, Ky.-Ind.
|
$1,200
|
12.2%
|
$1,009
|
4.6%
|
$1,105
|
10.3%
|
$1,350
|
10.0%
|
Memphis,
Tenn.-Miss.-Ark.
|
$1,385
|
24.2%
|
$1,248
|
23.4%
|
$1,319
|
23.3%
|
$1,507
|
28.9%
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$2,929
|
55.3%
|
$2,420
|
51.2%
|
$2,570
|
53.2%
|
$3,248
|
49.9%
|
Milwaukee-Waukesha-West Allis, Wis.
|
$1,505
|
9.0%
|
$1,195
|
7.4%
|
$1,402
|
6.9%
|
$1,740
|
11.5%
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$1,558
|
4.5%
|
$1,222
|
2.6%
|
$1,465
|
4.3%
|
$1,895
|
4.1%
|
Nashville-Davidson--Murfreesboro--Franklin,
Tenn.
|
$1,690
|
20.9%
|
$1,709
|
24.1%
|
$1,575
|
20.2%
|
$1,818
|
20.4%
|
New Orleans-Metairie,
La.
|
$1,725
|
11.3%
|
$1,400
|
12.0%
|
$1,508
|
2.2%
|
$1,965
|
8.2%
|
New
York-Newark-Jersey City, N.Y.-N.J.-Pa.
|
$2,725
|
11.5%
|
$2,500
|
25.0%
|
$2,482
|
5.7%
|
$3,013
|
8.0%
|
Oklahoma City,
Okla.
|
$923
|
8.8%
|
$800
|
18.5%
|
$850
|
10.5%
|
$998
|
10.9%
|
Orlando-Kissimmee-Sanford, Fla.
|
$1,843
|
35.4%
|
$1,620
|
27.2%
|
$1,718
|
35.0%
|
$2,098
|
42.7%
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$1,751
|
8.7%
|
$1,444
|
12.6%
|
$1,679
|
6.1%
|
$1,950
|
5.5%
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,885
|
25.0%
|
$1,451
|
26.2%
|
$1,648
|
25.8%
|
$2,200
|
21.4%
|
Pittsburgh,
Pa.
|
$1,500
|
8.8%
|
$1,210
|
7.5%
|
$1,490
|
15.7%
|
$1,630
|
9.5%
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$1,725
|
12.0%
|
$1,397
|
10.9%
|
$1,666
|
11.1%
|
$2,004
|
12.8%
|
Raleigh,
N.C.
|
$1,561
|
20.7%
|
$1,472
|
26.6%
|
$1,440
|
22.4%
|
$1,750
|
21.7%
|
Richmond,
Va.
|
$1,414
|
16.5%
|
$1,105
|
12.8%
|
$1,288
|
17.0%
|
$1,534
|
16.0%
|
Riverside-San
Bernardino-Ontario, Calif.
|
$2,678
|
14.2%
|
$1,450
|
-3.6%
|
$2,170
|
19.7%
|
$2,970
|
12.0%
|
Rochester,
N.Y.
|
$1,308
|
9.0%
|
$957
|
6.4%
|
$1,205
|
9.5%
|
$1,398
|
5.3%
|
Sacramento--Roseville--Arden-Arcade,
Calif.
|
$2,029
|
13.1%
|
$1,920
|
17.9%
|
$1,880
|
11.1%
|
$2,200
|
13.1%
|
San Antonio-New
Braunfels, Texas
|
$1,379
|
23.4%
|
$1,279
|
25.3%
|
$1,252
|
23.4%
|
$1,568
|
22.8%
|
San Diego-Carlsbad,
Calif.
|
$3,008
|
25.4%
|
$2,388
|
22.2%
|
$2,727
|
23.8%
|
$3,369
|
24.9%
|
San
Francisco-Oakland-Hayward, Calif.
|
$2,970
|
12.1%
|
$2,355
|
17.9%
|
$2,750
|
13.3%
|
$3,450
|
11.1%
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$3,024
|
14.2%
|
$2,416
|
23.3%
|
$2,810
|
14.6%
|
$3,441
|
14.8%
|
Seattle-Tacoma-Bellevue, Wash.
|
$2,104
|
17.1%
|
$1,758
|
25.0%
|
$2,079
|
16.8%
|
$2,516
|
12.6%
|
St. Louis,
Mo.-Ill.
|
$1,299
|
9.1%
|
$999
|
3.5%
|
$1,225
|
9.8%
|
$1,428
|
9.8%
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$2,098
|
32.3%
|
$1,875
|
26.1%
|
$1,867
|
33.1%
|
$2,349
|
33.8%
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$1,505
|
13.8%
|
$1,300
|
11.6%
|
$1,428
|
10.8%
|
$1,602
|
13.3%
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$2,078
|
12.3%
|
$1,705
|
13.6%
|
$1,985
|
11.0%
|
$2,431
|
10.5%
|
Methodology
Rental data as of February 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. We use communities that reliably report data
each month within the top 50 largest metropolitan areas. National
rents were calculated by averaging the medians of the 50 largest
metropolitan areas. *Boston, Mass.
and Providence, R.I.'s
February 2022 rental data is
currently under review.
The affordable monthly rent is calculated by applying the 30%
rule to the monthly median household income in each metro. The
monthly median household income is derived from the annual median
household income data sourced from Moody's Analytics.
Please note: With the release of its February 2022 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, this release is not directly comparable
with previous Realtor.com® data releases and reports.
However, future Realtor.com® data releases, including
historical data, will consistently apply the new methodology. See
more details here.
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rewarding for everyone. Realtor.com® pioneered the world
of digital real estate more than 25 years ago, and today through
its website and mobile apps offers a marketplace where people can
learn about their options, trust in the transparency of information
provided to them, and get services and resources that are
personalized to their needs. Using proprietary data science and
machine learning technology, Realtor.com® pairs buyers
and sellers with local agents in their market, helping take the
guesswork out of buying and selling a home. For professionals,
Realtor.com® is a trusted provider of 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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SOURCE Realtor.com