Good news for renters: the income needed to afford a typical U.S. apartment has tumbled to $63,680 a year, the lowest in nearly three years, according to Redfin, offering some relief for many Americans.
The median monthly rent for an apartment now stands at $1,592, down from its 2022 peak of $1,700. To afford this rent without exceeding the recommended 30% of income, renters needed an income of $68,000 in 2022.
Today, that requirement is about $5,000 less, thanks to a dip in rent and rising incomes among renters.
In 2024, the median renter income rose to $54,752—a 35% jump from pre-pandemic levels in 2019. However, that is still about 14% below the income required for affordability, underlining the difficulty many confront in securing stable housing.
Where Can Renters Breathe Easier?
Some cities offer a rosier picture. Renters in Austin, Houston and Dallas earn well above what’s needed to afford median rents. For example, Austin renters have a median income of $69,781, 25% higher than the income required to pay rent comfortably.
The 10 most affordable metros include cities like Raleigh, Denver and Nashville, where renter incomes often exceed what’s needed to afford the typical apartment.
Top Affordable Metros:
- Austin, TX: Renters earn 25% more than required.
- Houston, TX: 17.6% surplus income.
- Dallas, TX: 10.3% surplus income.
The Toughest Places to Rent
At the other end of the spectrum, cities like Providence, Miami and New York remain out of reach for many. In Providence, renters earn 41% less than what’s needed to afford median rents, making it the least affordable metro.
Least Affordable Metros:
- Providence, RI: Renters earn 41.3% less than needed.
- Miami, FL: 39.8% less.
- New York, NY: 36.4% less.
Los Angeles, another difficult market, faces new challenges. Following the devastating January wildfires, displaced residents are reportedly driving up rents as they search for housing.
What’s Next?
Redfin’s Senior Economist, Sheharyar Bokhari, expects rents to stay affordable in 2025 as wages swell and more apartments are built. However, with high home prices and expensive mortgages, many young people may continue renting longer, which could make renting more competitive in some areas.
And while rents are becoming more cheaper, many people still struggle to find affordable homes, especially in big cities where demand is higher than supply.
