Realtor.com® February Rental Report: Affordability Issues Rise as National Rents Reach 30% of Americans' Incomes

Rhea-AI Summary

In February 2022, U.S. rents soared by 17.1% year-over-year, reaching a new median of $1,792 per month, accounting for 30% of household budgets. Areas like Miami and San Diego are among the least affordable, with Miami's rents spiking by 55.3%. The report highlights a growing affordability crisis, especially in the Sun Belt, where many households face pressures from rising rental prices and mortgage rates. Despite the surge, some Middle America markets remain affordable, with rents under 30% of income. Overall, rising demand continues to outpace rental supply.

Positive

• Middle America offers more affordable rental options with rents below 30% of incomes in cities like Kansas City and Oklahoma City.
• Renter demand remains strong despite high prices, indicating market resilience.

Negative

• Rents accounted for 30% of household budgets, indicating affordability issues.
• Miami's rents increased by 55.3%, highlighting extreme unaffordability in certain markets.
• Year-over-year rent growth is four times higher than pre-pandemic levels, straining budgets.
• High rental costs may discourage potential homebuyers, limiting their market participation.

In February, national rents grew 17.1% year-over-year to a new high of $1,792 per month, representing a higher share of household incomes (29.7%) than in 2021 (24.8%)

SANTA CLARA, Calif., March 23, 2022 /PRNewswire/ -- New rental data shows affordability issues are on the rise, as Americans spent 30% of their monthly budgets on rents in February on average, according to the Realtor.com^® Monthly Rental Report released today. February rents accounted for an even higher portion of household incomes in 14 of the 50 largest U.S. markets, with the list of least affordable areas dominated by Sun Belt metros like Miami, Tampa, Fla. and San Diego, Calif.

In February, the U.S. median rental price hit a new high of $1,792 and soared by double-digit percentages (+17.1% year-over-year) for the seventh month in a row. Among unit sizes, studio rents increased at the fastest annual pace, up 17.1% (+$215) to a median of $1,474. Larger unit rents also posted double-digit gains over February 2021: 1-bedrooms, up 16.4% (+$232) to $1,648; and 2-bedrooms, up 16.2% ($278) to $2,002.

"Whether it's rent or mortgage payments, the general rule of thumb is to keep monthly housing costs to less than 30% of your income. And with rents surging nationwide, February data indicates that many renters' budgets may be stretched beyond the affordability limit," said Realtor.com^® Chief Economist Danielle Hale. "With rents up by nearly 20% over the past two years, rental prices are likely to remain high, but we do expect some cooling from the recent accelerated pace. In light of mounting economic uncertainties and the conflict in Ukraine, some households will prefer to buy, in an effort to lock-in a largely fixed monthly payment as a hedge against further inflation. But fast-rising mortgage rates and still-limited numbers of homes for sale could mean some would-be buyers may stick with the flexibility of renting. With rental demand already outmatching supply, rental affordability will remain a challenge. For renters eager to make the transition to first-time buying, finding a relatively affordable rental is key to saving for a downpayment. Tools like the Realtor.com^® Rent vs. Buy Calculator can help you frame the numbers in a meaningful way and make the choice that is right for you."

February 2022 Rental Metrics – National

Unit Size	Median Rent	Change over Feb. 2021	Change over Feb. 2020
Overall	$1,792	17.1% ($261)	18.8% ($283)
Studio	$1,474	17.1% ($215)	11.7% ($154)
1-bed	$1,648	16.4% ($232)	17.1% ($241)
2-bed	$2,002	16.2% ($278)	21.2% ($350)

Affordability issues soar nationwide, led by Sun Belt metros
February data indicates that rents are increasingly straining Americans' budgets, representing roughly 30% of typical household incomes. Year-over-year rent growth in February 2022 was four-times higher when compared to March 2020, before the onset of COVID, highlighting limited supply relative to demand. The acceleration in rents is largely driven by a growing segment of young households, many of whom are turning to renting in the face of the for-sale inventory crunch, record-high listing prices and climbing mortgage rates. In turn, many of the least affordable rental markets are also some of the most competitive areas for buying. These trends are illustrated in Sun Belt metros like Miami, Tampa and San Diego, which topped February's lists of fastest-growing and least affordable rental markets, as well as the hottest homebuying destinations.

• February rents made up 29.7% of the typical household income in the 50 largest U.S. metros, a higher share than during the same month in 2021 (25.3%). The rental share of income was even greater in 14 of these markets, led by Miami, at 59.5%; Los Angeles, at 46.0%; and Riverside, Calif., at 45.9% (see table below).
• Representing nearly half of the country's largest markets, the Sun Belt claimed half of February's least affordable areas and all 10 of the fastest-growing rental markets, including four in Florida. The state's low vacancy rates highlight rising rental affordability, with the Florida supply of vacant rental units (6.6%) declining drastically since 2009 (17.9%).
• In Miami, the median rental price spiked 55.3% year-over-year in February, bringing it to the top of February's least affordable markets. Although buying a starter home is more affordable than renting one in Miami, the local for-sale home market is also exploding. Compared to February 2021, listing prices were up 31.6% in Miami, which jumped 25 spots on the latest Realtor.com^® Hottest Markets Ranking.

Least Affordable Rental Markets (Feb. 2022)

Rank	Metro Area	Median Rent	Rental Share of Income	Rental Share of Income YoY	Maximum Affordable Rent
1	Miami, Fla.	$2,929	59.5%	37.8%	$1,476
2	Los Angeles, Calif.	$2,993	46.0%	39.1%	$1,952
3	Riverside, Calif.	$2,678	45.9%	40.5%	$1,752
4	Tampa, Fla.	$2,098	44.7%	33.1%	$1,407
5	San Diego, Calif.	$3,008	42.9%	35.0%	$2,105
6	New York, N.Y.	$2,725	40.9%	36.7%	$1,997
7	Las Vegas, Nev.	$1,600	39.6%	30.9%	$1,213
8	New Orleans, La.	$1,725	37.2%	32.5%	$1,392
9	Orlando, Fla.	$1,843	36.7%	26.8%	$1,506
10	Phoenix, Ariz.	$1,855	34.7%	27.9%	$1,628
11	Sacramento, Calif.	$2,029	31.8%	28.6%	$1,912
12	Memphis, Tenn.	$1,385	31.4%	25.3%	$1,324
13	Cleveland, Ohio	$1,378	30.7%	29.2%	$1,345
14	San Francisco, Calif.	$2,970	30.5%	28.2%	$2,921

Middle America rental markets offer relative affordability
Although rental affordability is dwindling at the national level, February data offers some good news for some renters, depending on where they live. In many large markets in Middle America, for instance, February rents came in below the recommended max share of monthly paychecks. Additionally, the area accounted for more than half of February's most affordable rental markets, including Kansas City, Oklahoma City and St. Louis. Still, with February rent growth outpacing incomes even in these relatively affordable areas, renters devoted more of their monthly paychecks towards housing costs than in 2021.

• After making a swift recovery from earlier COVID setbacks, rents grew over 2021 in each of the 50 largest U.S. metros in February, up by double-digits in 39 markets. February rent growth was in single-digit territory in the remaining 11 metros, keeping rental costs to a lower share of incomes in many of these areas.
• At No. 8 on the February list of most affordable rental markets, Minneapolis posted the country's second lowest annual rental price gains, up just 4.5% year-over-year. Compared to a metro like Miami, where rental affordability has dropped dramatically, Minneapolis rents were significantly lower in February ($1,558 vs. $2,929).
• In February, Middle America dominated the top 10 list of most affordable rental markets, with rents taking up less than 30% of typical household incomes in metros like Kansas City, at 19.9%; Oklahoma City, at 21.1%; and St. Louis, at 22.3%.
• At the same time, with housing affordability declining and mortgage rates climbing nationwide, Middle America renters might consider putting their monthly savings on rent towards buying a first home. In the No. 1 most affordable rental market of Kansas City, monthly starter home costs were 21.7% lower than rents in January, but also grew double-digits over 2021.

Most Affordable Rental Markets (Feb. 2022)

Rank	Metro Area	Median Rent	Rental Share of Income	Rental Share of Income YoY	Maximum Affordable Rent
1	Kansas City, Mo.	$1,216	19.9%	18.2%	$1,832
2	Oklahoma City, Okla.	$923	21.1%	19.0%	$1,314
3	Denver, Colo.	$1,921	21.9%	19.0%	$2,631
4	St. Louis, Mo.	$1,299	22.3%	20.7%	$1,749
5	Washington, D.C.	$2,078	22.7%	20.4%	$2,746
6	Indianapolis, Ind.	$1,215	23.0%	20.7%	$1,587
7	Louisville, Ky.	$1,200	23.0%	20.5%	$1,564
8	Minneapolis, Minn.	$1,558	23.0%	22.1%	$2,028
9	Houston, Texas	$1,420	23.4%	21.1%	$1,823
10	Raleigh, N.C.	$1,561	23.5%	19.9%	$1,990

January 2022 Rental Metrics – 50 Largest U.S. Metros*

Metropolitan Statistical Area	Overall Median Rent	Overall Rent YoY	Studio Median Rent	Studio Rent YoY	1-br Median Rent	1-br Rent YoY	2-br Median Rent	2-br Rent YoY
Atlanta-Sandy Springs-Roswell, Ga.	$1,812	19.6%	$1,684	19.3%	$1,685	19.7%	$2,000	18.7%
Austin-Round Rock, Texas	$1,773	28.1%	$1,420	20.8%	$1,630	28.7%	$1,925	24.4%
Baltimore-Columbia-Towson, Md.	$1,770	13.5%	$1,479	12.3%	$1,699	15.6%	$1,850	10.8%
Birmingham-Hoover, Ala.	$1,185	9.2%	$1,040	6.9%	$1,117	5.3%	$1,258	11.7%
Buffalo-Cheektowaga-Niagara Falls, N.Y.	$1,295	10.0%	$1,095	46.0%	$1,158	12.2%	$1,390	6.1%
Charlotte-Concord-Gastonia, N.C.-S.C.	$1,621	19.7%	$1,481	21.6%	$1,528	19.5%	$1,777	17.3%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	$1,817	10.1%	$1,328	3.1%	$1,811	13.2%	$2,000	4.7%
Cincinnati, Ohio-Ky.-Ind.	$1,395	7.8%	$1,133	9.5%	$1,346	9.1%	$1,508	3.4%
Cleveland-Elyria, Ohio	$1,378	6.0%	$965	7.9%	$1,319	6.5%	$1,500	8.7%
Columbus, Ohio	$1,249	11.7%	$1,028	3.6%	$1,157	10.9%	$1,358	9.7%
Dallas-Fort Worth-Arlington, Texas	$1,610	20.2%	$1,353	19.5%	$1,475	22.9%	$1,900	21.9%
Denver-Aurora-Lakewood, Colo.	$1,921	15.7%	$1,612	16.6%	$1,801	15.4%	$2,241	17.7%
Detroit-Warren-Dearborn, Mich.	$1,373	4.2%	$1,074	3.3%	$1,147	4.7%	$1,500	1.9%
Hartford-West Hartford-East Hartford, Conn.	$1,648	13.3%	$1,480	36.8%	$1,488	8.6%	$1,888	15.6%
Houston-The Woodlands-Sugar Land, Texas	$1,420	13.8%	$1,308	13.3%	$1,295	15.9%	$1,598	14.4%
Indianapolis-Carmel-Anderson, Ind.	$1,215	10.9%	$1,040	11.2%	$1,117	8.3%	$1,349	12.5%
Jacksonville, Fla.	$1,570	24.9%	$1,155	7.0%	$1,455	23.1%	$1,708	26.5%
Kansas City, Mo.-Kan.	$1,216	11.1%	$1,029	8.9%	$1,077	11.8%	$1,401	11.8%
Las Vegas-Henderson-Paradise, Nev.	$1,600	25.1%	$1,254	8.1%	$1,505	29.4%	$1,716	26.8%
Los Angeles-Long Beach-Anaheim, Calif.	$2,993	20.1%	$2,218	19.9%	$2,751	24.3%	$3,402	17.4%
Louisville/Jefferson County, Ky.-Ind.	$1,200	12.2%	$1,009	4.6%	$1,105	10.3%	$1,350	10.0%
Memphis, Tenn.-Miss.-Ark.	$1,385	24.2%	$1,248	23.4%	$1,319	23.3%	$1,507	28.9%
Miami-Fort Lauderdale-West Palm Beach, Fla.	$2,929	55.3%	$2,420	51.2%	$2,570	53.2%	$3,248	49.9%
Milwaukee-Waukesha-West Allis, Wis.	$1,505	9.0%	$1,195	7.4%	$1,402	6.9%	$1,740	11.5%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	$1,558	4.5%	$1,222	2.6%	$1,465	4.3%	$1,895	4.1%
Nashville-Davidson--Murfreesboro--Franklin, Tenn.	$1,690	20.9%	$1,709	24.1%	$1,575	20.2%	$1,818	20.4%
New Orleans-Metairie, La.	$1,725	11.3%	$1,400	12.0%	$1,508	2.2%	$1,965	8.2%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	$2,725	11.5%	$2,500	25.0%	$2,482	5.7%	$3,013	8.0%
Oklahoma City, Okla.	$923	8.8%	$800	18.5%	$850	10.5%	$998	10.9%
Orlando-Kissimmee-Sanford, Fla.	$1,843	35.4%	$1,620	27.2%	$1,718	35.0%	$2,098	42.7%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	$1,751	8.7%	$1,444	12.6%	$1,679	6.1%	$1,950	5.5%
Phoenix-Mesa-Scottsdale, Ariz.	$1,885	25.0%	$1,451	26.2%	$1,648	25.8%	$2,200	21.4%
Pittsburgh, Pa.	$1,500	8.8%	$1,210	7.5%	$1,490	15.7%	$1,630	9.5%
Portland-Vancouver-Hillsboro, Ore.-Wash.	$1,725	12.0%	$1,397	10.9%	$1,666	11.1%	$2,004	12.8%
Raleigh, N.C.	$1,561	20.7%	$1,472	26.6%	$1,440	22.4%	$1,750	21.7%
Richmond, Va.	$1,414	16.5%	$1,105	12.8%	$1,288	17.0%	$1,534	16.0%
Riverside-San Bernardino-Ontario, Calif.	$2,678	14.2%	$1,450	-3.6%	$2,170	19.7%	$2,970	12.0%
Rochester, N.Y.	$1,308	9.0%	$957	6.4%	$1,205	9.5%	$1,398	5.3%
Sacramento--Roseville--Arden-Arcade, Calif.	$2,029	13.1%	$1,920	17.9%	$1,880	11.1%	$2,200	13.1%
San Antonio-New Braunfels, Texas	$1,379	23.4%	$1,279	25.3%	$1,252	23.4%	$1,568	22.8%
San Diego-Carlsbad, Calif.	$3,008	25.4%	$2,388	22.2%	$2,727	23.8%	$3,369	24.9%
San Francisco-Oakland-Hayward, Calif.	$2,970	12.1%	$2,355	17.9%	$2,750	13.3%	$3,450	11.1%
San Jose-Sunnyvale-Santa Clara, Calif.	$3,024	14.2%	$2,416	23.3%	$2,810	14.6%	$3,441	14.8%
Seattle-Tacoma-Bellevue, Wash.	$2,104	17.1%	$1,758	25.0%	$2,079	16.8%	$2,516	12.6%
St. Louis, Mo.-Ill.	$1,299	9.1%	$999	3.5%	$1,225	9.8%	$1,428	9.8%
Tampa-St. Petersburg-Clearwater, Fla.	$2,098	32.3%	$1,875	26.1%	$1,867	33.1%	$2,349	33.8%
Virginia Beach-Norfolk-Newport News, Va.-N.C.	$1,505	13.8%	$1,300	11.6%	$1,428	10.8%	$1,602	13.3%
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	$2,078	12.3%	$1,705	13.6%	$1,985	11.0%	$2,431	10.5%

Methodology
Rental data as of February 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. We use communities that reliably report data each month within the top 50 largest metropolitan areas. National rents were calculated by averaging the medians of the 50 largest metropolitan areas. *Boston, Mass. and Providence, R.I.'s February 2022 rental data is currently under review.

The affordable monthly rent is calculated by applying the 30% rule to the monthly median household income in each metro. The monthly median household income is derived from the annual median household income data sourced from Moody's Analytics.

Please note: With the release of its February 2022 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, this release is not directly comparable with previous Realtor.com^® data releases and reports. However, future Realtor.com^® data releases, including historical data, will consistently apply the new methodology. See more details here.

About Realtor.com^®
Realtor.com^® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com^® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com^® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com^® is a trusted provider of 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^®.

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SOURCE Realtor.com

FAQ

What was the median rent in the U.S. in February 2022?

The median rent in the U.S. in February 2022 was $1,792.

Which U.S. city saw the highest rent increase in February 2022?

Miami, Florida had the highest rent increase at 55.3% in February 2022.

What percentage of household income did rents constitute in February 2022?

In February 2022, rents made up approximately 30% of household incomes.

How much did studio rents increase in February 2022?

Studio rents increased by 17.1% to a median of $1,474 in February 2022.

What are the characteristics of rental markets in Middle America?

Middle America markets showed relative affordability, with rents under 30% of household incomes in places like Kansas City.