HomeUnion has released a list of the most and least affordable rental housing markets in the U.S. Chicago tops the list as the most affordable metro, while Oakland, Calif., is the most expensive rental market, based on rent-to-income ratios.
“With its low cost of living, relatively large housing inventory levels and high affordability, Chicago is an excellent market for residents entering the renting pool,” says Steve Hovland, Director of Research for HomeUnion. It’s is the only metro in the country where typical renters spend less than 20% of their annual income on housing. Emerging neighborhoods like Logan Square and other West Side locations have become increasingly popular areas for young professionals, making Chicago an excellent choice for millennials.
The second location on HomeUnion’s list – Charlotte, N.C. – also has a low cost of living and high affordability, with average annual rents of under $16,000. “About one-quarter of the average income of a typical Charlotte resident goes to rental housing, making it appealing to millennials as well,” says Hovland.
Here’s a list of the 10 most affordable rental markets in the nation:
“Low affordability negatively impacts all renters in the Bay Area, Denver, Southern California and Washington, D.C., because of strong local job market conditions, intense demand for rental properties, and high mortgage costs for owner-occupied housing,” Hovland says.
Established and mature markets, such as Cincinnati and Cleveland, where home prices remain affordable, negatively impact renters’ wallets. “A significant number of potential young renters are migrating out of Ohio to Chicago or booming western metros such as Denver, the Bay Area and Los Angeles, leaving mostly low-wage earners to occupy rentals,” Hovland concludes.
Related Stories
Market Data | Jul 20, 2020
6 must reads for the AEC industry today: July 20, 2020
Never waste a crisis and robotic parking systems help developers optimize parking amenities.
Market Data | Jul 17, 2020
7 must reads for the AEC industry today: July 17, 2020
Kennedy Middle School's new Administration/Family Center and Tips to make optimal use of salvaged materials.
Market Data | Jul 16, 2020
Final NEPA rule will make it easier to rebuild infrastructure, reinvigorate the economy, and continue protecting the environment
Administration’s final reforms to the federal environmental review process fix problems with prior process, maintain environmental rigor, and accelerate needed infrastructure improvements.
Market Data | Jul 16, 2020
5 must reads for the AEC industry today: July 16, 2020
1928 hotel reimagined as a new resiential and cultural hub and Walgreens plans hundreds of doctor's offices at its stores.
Market Data | Jul 10, 2020
5 must reads for the AEC industry today: July 10, 2020
The world's tallest hybrid timber tower and the Florida Gators have a new $65 million ballpark.
Market Data | Jul 9, 2020
6 must reads for the AEC industry today: July 9, 2020
The world's most sustainable furniture factory and what will construction look like when COVID-19 ends?
Market Data | Jul 8, 2020
North America’s construction output to fall by 6.5% in 2020, says GlobalData
Even though all construction activities have been allowed to continue in most parts of the US and Canada since the start of the COVID-19 pandemic, many projects in the bidding or final planning stages have been delayed or canceled.
Market Data | Jul 8, 2020
5 must reads for the AEC industry today: July 8, 2020
AEMSEN develops concept for sustainable urban living and nonresidential construction has recovered 56% of jobs lost since March.
Market Data | Jul 7, 2020
Nonresidential construction has recovered 56% of jobs lost since March employment report
Nonresidential construction employment added 74,700 jobs on net in June.
Market Data | Jul 7, 2020
7 must reads for the AEC industry today: July 7, 2020
Construction industry adds 158,000 workers in June and mall owners open micro distribution hubs for e-commerce fulfillment.
