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.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®.

Media Contact

press@realtor.com 

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

Cision View original content:https://www.prnewswire.com/news-releases/realtorcom-august-rental-report-americans-spend-26-of-their-incomes-on-rents-301630142.html

SOURCE Realtor.com

Copyright 2022 PR Newswire

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