AUSTIN, TX — Rental affordability across the United States is showing steady improvement, according to Realtor.com®’s April Rent Report. The data reveals that the typical household is using 23.4% of their income on rent for a standard for-rent home, down from 24.7% in April 2024. This marks progress in easing the financial pressure on renters following pandemic-era spikes.
The national median asking rent settled at $1,699 in April, reflecting a modest $5 rise from March but standing $60 below its August 2022 peak. Importantly, in 45 of the largest 50 U.S. metropolitan areas, renters earning the typical household income now spend less than 30% of their earnings on rent, meeting the widely accepted affordability standard.
“One approach to measuring rental affordability is the 30% rule of thumb that says a household should spend no more than 30% of its gross income on housing costs,” explained Danielle Hale, chief economist at Realtor.com®. “Even in unaffordable markets, we saw improvement in April. Small but steady declines in rent costs over time, coupled with income growth, have boosted household buying power. However, rents are still about 20% higher than pre-pandemic levels, leaving financial concerns for many renters.”
Miami remains the least affordable market, where the median rent for a typical 0-2 bedroom unit surpasses the affordable threshold by 1.3 times based on the local median household income. Other cost-burdened metros include New York, Los Angeles, Boston, and San Diego. Despite their high costs, renters in these markets experienced modest affordability gains compared to last year.
On the opposite end of the spectrum, Oklahoma City emerged as the most affordable metro in April, with median rent costs at just 55.6% of the estimated maximum affordable rent. Other cities, particularly in the South and West, such as Tampa, Denver, and Phoenix, have also seen notable improvements in affordability driven by declining rent prices and rising incomes.
The report attributes part of the easing rents to a wave of newly constructed multifamily housing entering the market. The national rental vacancy rate climbed to 7.1% in the first quarter of this year, its highest level since 2018. Increased housing supply has helped stabilize rent trends, providing a more favorable landscape for renters this spring.
Looking ahead, the Realtor.com® report suggests that a higher rental vacancy rate and steady income growth may continue to ease affordability concerns. Even so, the rental market remains elevated compared to pre-pandemic levels, underscoring the need for sustained efforts to increase housing inventory and temper costs.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.