Renters catch break, but not everywhere
Nationwide, renters are spending less of their income on housing than they did a year ago. On average, Americans devoted 25.1% of their household income to rent in August, down from 25.9% in August 2023.
“One way to think about housing affordability is to use the 30% rule of thumb, where housing expenses including rent or mortgage, utilities and HOAs or other fees should not exceed more than 30% of your income,” explained Danielle Hale, chief economist of Realtor.com.
“Amid easing rents and growing incomes, rental affordability improved in a majority of US major metros compared to last year, and crucially, typical asking rent is less than 30% of the typical household income nationwide.”
But this improvement is not felt equally across the country. In cities like Oklahoma City, Columbus, and Austin, renters fare better, spending well below the 30% income threshold. Oklahoma City, for example, has become the most affordable market, where the median rent is just $1,040, and renters spend only 18.2% of their income on housing.
Markets like Tampa, Nashville, and Charlotte have benefited from increased rental supply, which has helped to lower rents. For example, Tampa’s median rent dipped to $1,733, accounting for 29.9% of the average household income, a significant drop from last year when it exceeded 30%.