Realtor.com® August Rental Report: Americans Spend 26% of their Incomes on Rents

Rhea-AI Summary

In August 2022, the U.S. median rental price reached $1,771, consuming an average of 26.4% of household budgets, up from 25.7% a year prior. Coastal metros like Miami and Los Angeles reported the highest rent-to-income ratios, with Miami hitting 46.5%. Despite a slight decline in median rent for the first time since November 2021, affordability worsened nationwide. Year-over-year rent growth moderated to 9.8%, yet overall rents remain over 20% higher compared to August 2020. Many renters are financially strained, as 60% cite higher costs as their primary concern.

Positive

• U.S. median rental price decreased for the first time since November 2021, from $1,781 to $1,771.
• Year-over-year rent growth moderated to 9.8%, down from double-digit increases.

Negative

• Overall rents increased by 22.8% compared to August 2020.
• Rents accounted for a higher share of household income (26.4% vs. 25.7%).
• Coastal areas showed extreme unaffordability, with Miami at 46.5% rent-to-income share.

In August, the U.S. median rental price ($1,771) accounted for a higher share of a typical household's budget compared to one year ago (26.4% vs. 25.7%)

SANTA CLARA, Calif., Sept. 22, 2022 /PRNewswire/ -- August data shows renters are feeling the strain of higher costs, as Americans spent more than one-quarter (26.4%) of their monthly budgets on rents in August, on average, according to the Realtor.com^® Monthly Rental Report released today. Among the 50 largest U.S. metros, coastal areas topped August's list of least affordable rental markets, with rents accounting for the highest shares of household incomes in Miami (46.5%), Los Angeles (40.7%) and San Diego (37.1%).

"Our analysis underscores the very real rental affordability challenges that many Americans face today. Rents are significantly higher than in previous years and are taking up a substantial portion of incomes, which are growing at a slower pace than inflation," said Realtor.com^® Chief Economist Danielle Hale. "Still, there are some bright spots for renters as of late. Based on the general rule of thumb that you should keep housing costs to under 30% of your paycheck, renters were able to follow best practice in the majority of large metros in August. Plus, as rent growth continued to cool, national rents didn't hit a new record-high for the first time in nine months.¹ If these trends and typical seasonal cooling persist, renters may be better able to keep housing costs to a relatively manageable portion of their budgets in the months ahead."

Hale added, the U.S. median rental price declined for the first time since November 2021 in August, to $1,771 from $1,781 in July.¹ Additionally, rent growth continued moderating on a year-over-year basis, down to a single-digit increase (+9.8%) after 13 straight months at a double-digit pace. However, national rents remained more than 20% higher than in August 2020 overall (+22.8%) and across all unit sizes: Studios at a median $1,489 (+21.2%), one-beds at a median $1,653 (22.6%), and two-beds at a median $1,964 (+23.2%).

August 2022 Rental Metrics – National

Unit Size	Median Rent	Change over Aug. 2021	Change over Aug. 2020
Overall	$1,771	9.8 %	22.8 %
Studio	$1,489	11.8 %	21.2 %
1-bed	$1,653	9.3 %	22.6 %
2-bed	$1,964	9.1 %	23.2 %

Rental affordability worsens nationwide and especially in coastal metros

Despite the cooldown in annual rent growth, August data indicates that rental affordability issues are rising. Nationally, rents accounted for a higher share of renters' incomes in August compared to last year (26.4% vs. 25.7%, on average). Among the 50 largest U.S. metros, nine had a rent-to-income share that was higher than 30%, with coastal markets dominating the top 10 list of least affordable metros in August (see table below).

August 2022 Rental Metrics – Top 10 Least Affordable Markets, by Rent-to-Income Share

Rank	Metro	Aug. 2022 Rent Share	Aug. 2022 Median Rent	2022 Monthly HH Income	Aug. 2021 Rent Share	Aug. 2021 Median Rent	2021 Monthly HH Income
1	Miami, Fla.	46.5 %	$2,626	$5,641	43.1 %	$2,250	$5,216
2	Los Angeles, Calif.	40.7 %	$2,946	$7,234	40.2 %	$2,675	$6,648
3	San Diego, Calif.	37.1 %	$2,888	$7,792	36.0 %	$2,590	$7,186
4	New York, N.Y.	36.3 %	$2,807	$7,726	32.8 %	$2,362	$7,206
5	Boston, Mass.	35.1 %	$3,040	$8,654	30.7 %	$2,475	$8,065
6	Tampa, Fla.	32.9 %	$1,789	$5,433	33.9 %	$1,710	$5,050
7	Riverside, Calif.	32.4 %	$2,107	$6,508	35.4 %	$2,105	$5,947
8	Orlando, Fla.	32.0 %	$1,842	$5,766	30.1 %	$1,620	$5,377
9	Providence, R.I.	31.9 %	$2,035	$6,386	29.9 %	$1,758	$5,885
10	Chicago, Ill.	29.7 %	$2,061	$6,945	25.8 %	$1,650	$6,397

Middle-America offers renters relative affordability

Rental affordability did vary by location in August, with renters putting a relatively lower share of their paychecks towards rents in the vast majority of the largest metros. In fact, compared to the national rent-to-income share, rents were significantly more affordable in many markets in Middle America. Nevertheless, even in these areas, affordability has declined over the past year, with rental costs accounting for a higher share of incomes than in August 2021 in seven of the top 10 most affordable markets (see table below).

August 2022 Rental Metrics – Top 10 Most Affordable Markets, by Rent-to-Income Share

Rank	Metro	Aug. 2022 Rent Share	Aug. 2022 Median Rent	2022 Monthly HH Income	Aug. 2021 Rent Share	Aug. 2021 Median Rent	2021 Monthly HH Income
1	Oklahoma City, Okla.	17.5 %	$973	$5,570	16.7 %	$848	$5,083
2	Minneapolis, Minn.	20.1 %	$1,545	$7,674	20.8 %	$1,499	$7,199
3	St. Louis, Mo.	20.3 %	$1,246	$6,143	20.0 %	$1,153	$5,765
4	Kansas City, Mo.	20.6 %	$1,306	$6,347	19.5 %	$1,169	$6,004
5	Louisville, Ky.	20.6 %	$1,158	$5,625	19.1 %	$1,027	$5,372
6	Columbus, Ohio	20.7 %	$1,280	$6,189	20.2 %	$1,172	$5,811
7	Cincinnati, Ohio	21.3 %	$1,313	$6,159	20.6 %	$1,183	$5,749
8	Indianapolis, Ind.	21.7 %	$1,284	$5,917	21.0 %	$1,160	$5,519
9	Birmingham, Al.	21.9 %	$1,194	$5,445	20.7 %	$1,090	$5,258
10	Houston, Texas	22.3 %	$1,391	$6,238	22.5 %	$1,296	$5,750

With higher rents leaving less money in renters' pockets each month, more than half (60%) of renters report that higher rents and household expenses are their biggest cause of financial strain, according to a recent survey from Avail (a part of Realtor.com^®). Through September 25th, renters who are struggling with higher costs can enter Realtor.com^®'s Free Rent Sweepstakes for a chance to win a $2,500 cash prize to put toward their monthly rent.

August 2022 Rental Metrics – 50 Largest U.S. Metro Areas

Metro	Overall Median Rent	Overall Rent YY	Studio Median Rent	Studio Rent YY	1-br Median Rent	1-br Rent YY	2-br Median Rent	2-br Rent YY
Atlanta-Sandy Springs-Roswell, Ga.	$1,760	4.2 %	$1,706	7.8 %	$1,659	3.8 %	$1,892	2.5 %
Austin-Round Rock, Texas	$1,765	9.5 %	$1,532	16.1 %	$1,617	8.7 %	$1,959	8.8 %
Baltimore-Columbia-Towson, Md.	$1,790	6.4 %	$1,591	6.6 %	$1,701	6.2 %	$1,912	7.5 %
Birmingham-Hoover, Ala.	$1,194	9.6 %	$965	-9.8 %	$1,137	8.1 %	$1,230	10.2 %
Boston-Cambridge-Newton, Mass.-N.H.	$3,040	22.8 %	$2,796	31.6 %	$2,787	18.6 %	$3,384	26.0 %
Buffalo-Cheektowaga-Niagara Falls, N.Y.	$1,291	8.0 %	$840	1.8 %	$1,188	11.3 %	$1,478	9.3 %
Charlotte-Concord-Gastonia, N.C.-S.C.	$1,631	7.9 %	$1,570	14.5 %	$1,537	10.2 %	$1,753	5.4 %
Chicago-Naperville-Elgin, Ill.-Ind.-Wisc.	$2,061	24.9 %	$1,761	52.8 %	$1,988	24.1 %	$2,276	21.1 %
Cincinnati, Ohio-Ky.-Ind.	$1,313	11.1 %	$1,182	11.0 %	$1,252	10.4 %	$1,352	6.3 %
Cleveland-Elyria, Ohio	$1,236	11.8 %	$918	15.5 %	$1,187	11.2 %	$1,385	15.1 %
Columbus, Ohio	$1,280	9.2 %	$1,058	5.8 %	$1,207	9.7 %	$1,356	7.1 %
Dallas-Fort Worth-Arlington, Texas	$1,609	11.4 %	$1,400	11.3 %	$1,497	12.7 %	$1,891	10.3 %
Denver-Aurora-Lakewood, Colo.	$1,977	5.1 %	$1,632	2.1 %	$1,842	4.1 %	$2,289	5.5 %
Detroit-Warren-Dearborn, Mich.	$1,302	8.7 %	$1,130	14.8 %	$1,145	10.4 %	$1,435	6.7 %
Hartford-West Hartford-East Hartford, Conn.	$1,661	10.8 %	$1,404	24.6 %	$1,487	5.1 %	$1,915	12.6 %
Houston-The Woodlands-Sugar Land, Texas	$1,391	7.4 %	$1,309	4.1 %	$1,280	7.7 %	$1,537	5.8 %
Indianapolis-Carmel-Anderson, Ind.	$1,284	10.7 %	$1,099	9.9 %	$1,212	13.2 %	$1,398	7.7 %
Jacksonville, Fla.	$1,474	5.5 %	$1,199	18.3 %	$1,373	4.8 %	$1,575	3.5 %
Kansas City, Mo.-Kan.	$1,306	11.7 %	$955	2.4 %	$1,234	13.5 %	$1,512	12.0 %
Las Vegas-Henderson-Paradise, Nev.	$1,541	2.3 %	$1,019	12.2 %	$1,429	3.2 %	$1,643	0.1 %
Los Angeles-Long Beach-Anaheim, Calif.	$2,946	10.1 %	$2,345	14.8 %	$2,716	8.8 %	$3,434	7.6 %
Louisville/Jefferson County, Ky.-Ind.	$1,158	12.8 %	$1,023	16.2 %	$1,091	11.0 %	$1,232	9.8 %
Memphis, Tenn.-Miss.-Ark.	$1,336	10.3 %	$1,206	11.2 %	$1,313	9.9 %	$1,373	9.8 %
Miami-Fort Lauderdale-West Palm Beach, Fla.	$2,626	16.7 %	$2,227	20.3 %	$2,355	17.7 %	$2,933	15.3 %
Milwaukee-Waukesha-West Allis, Wisc.	$1,538	8.7 %	$1,197	9.4 %	$1,423	9.2 %	$1,757	6.6 %
Minneapolis-St. Paul-Bloomington, Minn.-Wisc.	$1,545	3.1 %	$1,203	0.3 %	$1,459	1.9 %	$1,850	1.4 %
Nashville-Davidson–Murfreesboro–Franklin, Tenn.	$1,697	10.8 %	$1,645	4.6 %	$1,630	10.8 %	$1,777	13.0 %
New Orleans-Metairie, La.	$1,391	7.8 %	N/A
New York-Newark-Jersey City, N.Y.-N.J.-Penn.	$2,807	18.9 %	$2,553	22.3 %	$2,498	15.0 %	$3,107	16.2 %
Oklahoma City, Okla.	$973	14.9 %	$867	23.8 %	$828	10.4 %	$1,050	17.4 %
Orlando-Kissimmee-Sanford, Fla.	$1,842	13.8 %	$1,636	13.1 %	$1,731	14.4 %	$2,056	13.3 %
Philadelphia-Camden-Wilmington, Penn.-N.J.-Del.-M.D.	$1,767	8.4 %	$1,466	14.1 %	$1,716	7.9 %	$1,889	3.4 %
Phoenix-Mesa-Scottsdale, Ariz.	$1,647	2.1 %	$1,299	4.1 %	$1,543	2.2 %	$1,784	-1.2 %
Pittsburgh, Penn.	$1,524	9.3 %	$1,373	11.0 %	$1,498	10.5 %	$1,552	2.9 %
Portland-Vancouver-Hillsboro, Ore.-Wash.	$1,847	9.1 %	$1,463	5.7 %	$1,760	7.9 %	$2,101	9.9 %
Providence-Warwick, R.I.-Mass.	$2,035	15.8 %	N/A
Raleigh, N.C.	$1,651	12.2 %	$1,515	10.9 %	$1,536	12.8 %	$1,803	9.4 %
Richmond, Va.	$1,405	9.4 %	$1,260	15.6 %	$1,321	12.4 %	$1,549	7.6 %
Riverside-San Bernardino-Ontario, Calif.	$2,107	0.1 %	$1,321	-6.2 %	$1,905	1.1 %	$2,401	0.8 %
Rochester, N.Y.	$1,309	8.8 %	$1,094	25.8 %	$1,206	10.9 %	$1,507	12.9 %
Sacramento–Roseville–Arden-Arcade, Calif.	$1,955	3.2 %	$1,550	-7.2 %	$1,788	1.3 %	$2,065	3.4 %
San Antonio-New Braunfels, Texas	$1,294	9.8 %	$1,041	0.4 %	$1,216	10.6 %	$1,466	8.5 %
San Diego-Carlsbad, Calif.	$2,888	11.5 %	$2,339	11.5 %	$2,719	10.7 %	$3,221	11.4 %
San Francisco-Oakland-Hayward, Calif.	$3,134	8.6 %	$2,629	10.5 %	$2,860	6.5 %	$3,655	9.6 %
San Jose-Sunnyvale-Santa Clara, Calif.	$3,353	11.9 %	$2,675	11.7 %	$3,111	11.7 %	$3,780	11.3 %
Seattle-Tacoma-Bellevue, Wash.	$2,195	6.8 %	$1,820	9.9 %	$2,173	5.1 %	$2,504	9.1 %
St. Louis, Mo.-Ill.	$1,246	8.1 %	$993	4.4 %	$1,201	6.7 %	$1,316	6.1 %
Tampa-St. Petersburg-Clearwater, Fla.	$1,789	4.6 %	$1,753	11.3 %	$1,668	3.4 %	$1,929	1.5 %
Virginia Beach-Norfolk-Newport News, Va.-N.C.	$1,417	5.5 %	$1,285	10.7 %	$1,382	5.2 %	$1,451	1.2 %
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	$2,199	8.0 %	$1,815	8.6 %	$2,099	7.8 %	$2,547	6.1 %

*Unit-specific metrics for New Orleans and Providence, R.I. excluded while rental data is under review.

Methodology

Rental data as of August 2022 for units advertised as for-rent on Realtor.com^®. Rental units include apartment communities as well as private rentals (condos, townhomes, single-family homes). All units were studio, 1-bedroom, or 2-bedroom units. National rents were calculated by averaging the medians of the 50 largest U.S. metropolitan areas, as defined by the Office of Management and Budget (OMB). Realtor.com^® began publishing regular monthly rental trends reports in October 2020 with data history going back to March 2019.

Rental affordability analysis: The affordable monthly rent is calculated by applying the 30% rule to the estimated 2022 monthly median household income nationwide ($6,716 across the 50 largest U.S. metros, on average) and in each metro. The monthly median household income is derived from the annual median household income data sourced from Claritas. Due to the methodology changes noted below, Realtor.com has made historical revisions to its prior affordability analyses. For our most recently published affordability analysis on February 2022 data published in March 2022, the national rent-to-income share has been updated to 25.0%.

Note on new methodology: With the release of its August 2022 Monthly Rental Report, Realtor.com^® incorporated a new and improved methodology for capturing and reporting rental listing trends and metrics. As a result of these changes, the rental data released since September 2022 will not be directly comparable with previous releases, but future data releases, including historical data, will consistently apply the new methodology. See more details here.

About Realtor.com^®

Realtor.com^® is an open real estate marketplace built for everyone. Realtor.com^® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com^® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com^® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com^®.

Media Contact

press@realtor.com 

¹Reflects historical revisions due to updated methodology. See more details in the methodology section.

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SOURCE Realtor.com

FAQ

What was the U.S. median rental price in August 2022?

The U.S. median rental price in August 2022 was $1,771.

How much of a household's income is spent on rent as of August 2022?

On average, 26.4% of a household's income was spent on rent in August 2022.

Which metro areas had the highest rent-to-income ratios in August 2022?

Miami, Los Angeles, and San Diego had the highest rent-to-income ratios in August 2022.

What was the year-over-year rent growth in August 2022?

The year-over-year rent growth moderated to 9.8% in August 2022.

What factors are causing financial strain for renters?

Higher rents and household expenses are the biggest causes of financial strain for renters.