Renter affordability has improved in some areas of the U.S. than others

Renter affordability has improved in some areas of the U.S. than others

The cost to rent is coming down faster in some areas of the U.S. than others. 

Overall, rent affordability is improving thanks to a combination of factors, said Daryl Fairweather, chief economist at Redfin. One is, there’s more supply.

“There are more apartments for rent now because there was a bit of a construction boom during the pandemic,” she said. 

With a higher rental inventory, landlords and property managers must lower their rent prices in order to compete with one another, Fairweather said. 

Renters are also earning more, giving them more buying power.

In 2024, the median income among renters was $54,752, up 5.3% from $52,019 in 2023 and 35.2% higher from $40,505 in 2019, according to a recent report by Redfin.

Even so, that median income is still 14% below — or about $8,928 under — the amount tenants need to comfortably afford rent, the report found.

“The majority of renters are rent burdened,” said Fairweather, meaning tenants are spending more of their income than they should be on rental housing.

The Joint Center for Housing Studies at Harvard University defines a renter as “cost burdened” if they spend more than 30% of their income on rent and utilities.

Some areas in the U.S. may have more favorable rental market conditions, like a higher supply of newly built apartment buildings. Other areas, however, see more competition for available units and higher costs due to lower rates of building activity. 

Whether you’re apartment hunting or renewing your lease, here are the 10 places where rents are falling the most and the 10 places where costs are climbing higher.

Where declining rents are improving affordability

Austin, Texas is No.1 among the “most affordable metros,” which Redfin defines as places where renters typically earn more money than they need in order to afford a typical rental unit. 

The typical renter in the area makes $69,781 annually, which is 25.14% higher than the $55,760 the site estimates is required to afford a typical apartment there.

Austin is followed by Houston; Dallas; Salt Lake City; Raleigh, North Carolina; Denver; Phoenix; Washington, D.C.; Baltimore; and Nashville.