20 Most Affordable US Cities for Renters

Zarah Hamid
9 min read

In This Article:

In this article, we will be analyzing the US rental market while covering the 20 most affordable US cities for renters. If you wish to skip our detailed analysis, you can move directly to the 5 Most Affordable US Cities for Renters.

The US Rental Market at a Glance

As 2024 commenced, the rental market in the US seems to have cooled. However, a shortage of supply and high demand from renters continue to persist. During January, the national median price of rent for apartments declined by 0.3% year-over-year. On February 22, CNN reported that the demand will continue to be strong since renting is still affordable as compared to buying a house, especially for many would-be buyers who were pushed out of the market during the national housing crisis. You can also take a look at the best states for first-time homebuyers.

Rents have grown in the Midwest where rental demand is high since unemployment rates are low. The median rent has fallen in the South due to the growing supply of new multifamily housing. Rents in the West have also gone up influenced by the high demand and issues related to affording a new house. Metros in the Northeast such as New York and Boston have faced a surge in rents since building new apartments is relatively difficult amidst strong labor markets.

Current Market Dynamics

As reported by Zillow, the income currently required to afford a typical rental in the US is $78,379 and rents are 3.5% higher, as compared to 2023. As of February, apartment rents have gone up by 23.6% since the global pandemic first came. As the US millennial generation approaches the age for buying a home, single-family rents have also witnessed a rise twice that for apartment rents.

Metro-wise, 47 of the 50 largest metro areas saw an increase in rents in February since last year. Providence, Cleveland, Louisville, Hartford, and Cincinnati recorded the highest annual rent increases. At the same time, asking rents went down month-over-month in Milwaukee by 0.4%, Austin by 0.2% and Dallas by 0.2%. Expensive US cities for renters have been previously covered.

As of February, single-family rents increased year-over-year in 49 of the 50 largest metro areas. Some of these include Cleveland, Cincinnati, and Milwaukee. Multifamily rents also went up on a yearly basis in 39 of the 50 largest metro areas including Providence, Louisville, and Hartford.

State Wise Analysis

As reported by CNBC, housing is a major household expense for many Americans. A notable trend in the state rental market reflects that states with the highest rent costs are those where mortgage costs are high. Among all states, Hawaii holds the highest average monthly rent. The average cost of household bills also tends to be high in the state. Rents are high in the US states of California and Massachusetts as well. Residents of California pay an average monthly rent as high as $1,927. On the other extreme, West Virginia was found to have the lowest rent costs. Furthermore, the state is relatively affordable in terms of mortgage payments. West Virginia's average cost of bills which included rent, tends to be 25.2% lower than the national average. Arkansas and South Dakota are other US states where the average monthly rent is relatively cheaper.

Recommended Stories