Realtor.com® February Rental Report: Many Americans Are Spending More Than They Can Afford on Rent
The February 2023 Rental Report by Realtor.com reveals that while median rent in the 50 largest U.S. metros has slightly declined to $1,716, affordability worsens, with typical renters spending 25.3% of their income on housing, up from 24.8% last year. Eight metros, including Miami and Los Angeles, see over 30% of income spent on rent. Despite a slowdown in rental price growth over the past year, rents remain significantly higher than pre-pandemic levels, increasing by 20.8% since 2020. The report highlights that affordability is deteriorating but at a slowing pace in many markets.
- Median rent in February 2023 decreased slightly to $1,716, marking a $48 decline from the peak.
- The pace of rent growth has slowed for 13 months, suggesting stabilization in rental prices.
- Renters now allocate 25.3% of their income to rent, up from 24.8% a year ago.
- Rents in some metros remain above the 30% income threshold, highlighting persistent affordability issues.
The least affordable metros where people spend more than
In February, the median rent in the 50 largest metros declined to
"The general rule of thumb is that you shouldn't spend more than
The pace of rent growth has slowed for the past 13 months and experienced single-digit growth for the past seven months. Despite this, rent prices are still
Least affordable rental markets in
Miami -Fort Lauderdale -West Palm Beach, Fla. –$2,349 42.3% of incomeLos Angeles-Long Beach -Anaheim, Calif. –$2,864 39.2% of incomeNew York -Newark -Jersey City , N.Y.-N.J.-Pa. –$2,895 37.5% of incomeSan Diego -Carlsbad, Calif. –$2,844 36.6% of incomeRiverside -San Bernardino -Ontario, Calif. –$2,145 32.5% of incomeBoston -Cambridge -Newton, Mass. -N.H. –$2,829 32.0% of incomeOrlando -Kissimmee -Sanford, Fla. –$1,769 31.1% of incomeTampa -St. Petersburg-Clearwater , Fla. –$1,691 31.1% of income
Head inland to find affordability
All eight of the most rent-burdened metros are located along the coast with Fla. (three markets) and Calif. (three markets) leading the pack. On the other hand, the American Heartland led the way in terms of affordability.
"While these American Heartland markets still offer relative affordability, they are not immune to price hikes. As we saw in the January Rental Report, these markets are experiencing some of the fastest year-over-year price growth in the country," said
Rental Data – 50 Largest Metropolitan Areas –
Metro | Overall Median | Overall Rent YY |
|
|
-1.3 % | 24.5 % | 25.5 % | ||
-2.0 % | 21.7 % | 22.1 % | ||
2.6 % | 23.3 % | 23.4 % | ||
9.4 % | 22.2 % | 20.4 % | ||
6.8 % | 32.0 % | 30.6 % | ||
NA | NA | NA | NA | |
1.3 % | 25.4 % | 25.4 % | ||
5.2 % | 26.2 % | 24.9 % | ||
8.6 % | 19.4 % | 18.4 % | ||
-0.4 % | 22.2 % | 22.3 % | ||
4.1 % | 18.2 % | 18.2 % | ||
0.7 % | 22.5 % | 22.5 % | ||
0.6 % | 23.4 % | 23.6 % | ||
8.0 % | 22.9 % | 21.3 % | ||
NA | NA | NA | NA | |
3.4 % | 22.4 % | 21.5 % | ||
11.8 % | 22.1 % | 20.0 % | ||
1.2 % | 24.1 % | 23.9 % | ||
6.4 % | 19.8 % | 18.9 % | ||
-3.9 % | 27.5 % | 28.0 % | ||
0.9 % | 39.7 % | 39.2 % | ||
7.2 % | 21.4 % | 20.3 % | ||
3.5 % | 24.7 % | 24.8 % | ||
3.7 % | 42.3 % | 40.2 % | ||
7.2 % | 25.7 % | 24.1 % | ||
2.9 % | 19.0 % | 18.8 % | ||
-0.8 % | 24.0 % | 24.1 % | ||
NA | NA | NA | NA | |
12.2 % | 37.5 % | 33.4 % | ||
10.9 % | 17.4 % | 15.9 % | ||
3.2 % | 31.1 % | 29.7 % | ||
1.8 % | 26.2 % | 26.2 % | ||
-3.9 % | 24.1 % | 25.7 % | ||
7.6 % | 24.9 % | 23.1 % | ||
5.0 % | 23.6 % | 22.6 % | ||
NA | NA | NA | NA | |
0.4 % | 20.5 % | 20.5 % | ||
4.6 % | 22.0 % | 21.9 % | ||
-2.0 % | 32.5 % | 33.6 % | ||
NA | NA | NA | NA | |
-1.2 % | 26.2 % | 26.7 % | ||
5.4 % | 23.4 % | 22.2 % | ||
3.0 % | 36.6 % | 35.4 % | ||
0.5 % | 27.1 % | 27.1 % | ||
5.9 % | 26.8 % | 25.9 % | ||
0.9 % | 23.2 % | 23.3 % | ||
7.6 % | 20.8 % | 19.8 % | ||
-2.0 % | 31.1 % | 31.7 % | ||
4.2 % | 21.9 % | 21.8 % | ||
5.1 % | 21.5 % | 20.9 % |
Methodology Overview*
Rental data as of February for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). With the release of its February rent report, Realtor.com® incorporated a new and improved methodology for capturing and reporting more comprehensive rental listing trends and metrics. As a result of these changes, the rental data released since
Rental affordability analysis: The affordable monthly rent is calculated by applying the
*See report for fully detailed methodology
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
Media contact: press@realtor.com
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SOURCE Realtor.com
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