Realtor.com reported in its February rental report that while inflation has begun to ease slightly, affordability continued to worsen in 26 major metropolitan areas, led by Miami, Los Angeles, New York, San Diego, Riverside, California, Boston , Orlando and Tampa.
According to the report, in February, the median rent in the 50 largest metropolitan areas dropped to $1,716, down $1 from last month and $48 from the peak. However, rents are still up 3.1% from a year ago, making rent payments less affordable.
This means that renters earning typical household income spent 25.3% of their income renting a typical rental home, up from 24.8% a year ago.
“The general rule of thumb is that you shouldn’t spend more than 30% of your income on housing, but data shows that in eight of the 50 largest metropolitan areas, many renters are doing just that,” said the Realtor.com ® chief. Economist Danielle Hale.
“The slowdown in rental price growth is positive for renters, but it’s important to put this in context. This means affordability is worsening at a slower rate in many markets; It’s not getting better,” Hale said.
The pace of rental growth has slowed over the past 13 months and experienced single-digit growth over the past seven months. Despite this, rental prices are still $296 (20.8%) higher than the same period in 2020 (pre-pandemic).
Less affordable rental markets in February 2023:
(1) Real Estate Market: Miami – Fort Lauderdale – West Palm Beach, Fla.
Average rent: $2,349 dollars
Income percentage: 42.3%
(2) Real Estate Market: Los Angeles-Long Beach – Anaheim, Calif.
Average rent: $2,864
Income percentage: 39.2%
(3) Real Estate Market: New York – Newark – Jersey City, NY-NJ-Pa.
Average rent: $2,895
Revenue Percentage: 37.5%
(4) Real Estate Market: San Diego – Carlsbad, Calif.
Average rent: $2,844
Income percentage: 36.6%
(5) Real Estate Market: Riverside – San Bernardino – Ontario, Calif.
Average rent: $2,145
Income percentage: 32.5%
(6) Real Estate Market: Boston – Cambridge – Newton, Mass. -NH
Average rent: $2,829
Income Percentage: 32.0%
(7) Real Estate Market: Orlando – Kissimmee – Sanford, Fla.
Average rent: $1,769
Income percentage: 31.1%
(8) Real Estate Market: Tampa–St. Petersburg-Clearwater, Fla.
Average rent: $1,691
Income percentage: 31.1%
The eight metro areas with the highest rent burden are located along the coast with Florida (three markets) and California (three markets) leading the way.
To consult the complete table, enter here.
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