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 | Jun 26, 2020
5 must reads for the AEC industry today: June 26, 2020
Restoration of 1930s El Paso hotel completes and Arc offers tools, analytics for safe workplace re-entry.
Market Data | Jun 25, 2020
Commercial Construction Index drops amid Coronavirus pandemic, but contractors poised for near-term recovery
Contractors quickly prioritized worker health and safety, and 1 in 3 plan to hire more workers in the next 6 months.
Market Data | Jun 25, 2020
7 must reads for the AEC industry today: June 25, 2020
CDC to build the most advanced high containment laboratory in the country and architecture billings downward trajectory moderates.
Market Data | Jun 24, 2020
Architecture billings downward trajectory moderates
AIA’s Architecture Billings Index (ABI) score for May was 32.0 compared to 29.5 in April, but still represents a significant decrease in services provided by U.S. architecture firms.
Market Data | Jun 24, 2020
8 must reads for the AEC industry today: June 24, 2020
San Francisco's apartment market goes in reverse and WATG designs a solution for isolating without sacrificing social connectivity.
Market Data | Jun 23, 2020
National survey reveals pandemic's impact on college students' mental health, remote learning, families' income and more
Of 2,500 student respondents, 75% feel more anxious or stressed, 57% said they lost their summer jobs and 90% want to return to campus in the fall.
Market Data | Jun 23, 2020
7 must reads for the AEC industry today: June 23, 2020
Gyms are going bacnkrupt and leaving gaps in shopping centers and how hotels are trying to keep guests and employees safe.
Market Data | Jun 22, 2020
New House infrastructure package will provide needed investments in aging infrastructure, support economic recovery, and create jobs
The Moving Forward Act’s proposed $1.5 trillion in new investments will improve range of public infrastructure, creating needed demand for construction while making the economy more efficient.
Market Data | Jun 22, 2020
7 must reads for the AEC industry today: June 22, 2020
Construction employment rises from April to May in 45 states and the first building in the U.S. designed for post COVID-19 environment.
Market Data | Jun 22, 2020
Construction employment rises from April to May in 45 states, slips in 5
Rebound from April job losses reflects one-shot help from paycheck protection program loans and easing of stay-at-home orders, but cancellations and state and local deficits imply further cuts ahead.