According to a recent Redfin survey, renters must make $63,680 to cover the median asking rent for a U.S. apartment ($1,592), the lowest amount required since March 2022. That represents a 6.4% decrease from August 2022, when the median asking rent reached an all-time high of $1,700, and a 0.4% decrease from a year ago. The average apartment would have cost $68,000 to rent back then, which is almost $5,000 more than it is now.
Renters are making more money than ever before, on the other side of the affordability issue. Renters’ predicted median income in 2024 was $54,752, which was 5.3% more than in 2023 ($52,019) and 35.2% higher than the pre-pandemic 2019 ($40,505) income. That’s still 14% less—or $8,928 a year in dollar terms—than the $63,680 income needed to afford the median monthly rent for an apartment. However, the disparity between renters’ income and what they need to make to maintain reasonable rent is closing; last month’s difference was the smallest in the five years that Redfin has been tracking the two variables.
“Rental affordability will continue improving this year, as wages grow and rents remain flat, thanks to the recent boom in apartment construction,” said Sheharyar Bokhari, Senior Economist at Redfin. “The affordability gap between renting and buying is likely to widen further in 2025, as home prices rise and mortgage rates remain high. That means potential homebuyers—especially from younger generations—may decide to continue renting for longer, as it’s the only affordable option.”
Renter Incomes Jump, Texas Metro Dubbed Most Affordable in U.S.
Renters in 15 of the 44 major metro areas examined made more than the median rent in December, compared to just seven metro areas the previous year, highlighting the need to increase rental affordability generally.
The median wage for renters in Austin, Texas, was $69,781. This is the largest disparity among the main metros, at 25.1% (or $14,021 in dollars) more than what they require to buy an average flat. Dallas (10.3% more), Salt Lake City (8.9% more), Raleigh, North NC (8.4% more), and Houston (17.6% more) came next.
Top 10 Most Affordable Metros For Renters:
| Rank | U.S. Metro | Median Asking Rent (Dec 2024) | Income Required To Afford Median Asking Rent (Dec 2024) | Estimated Median Renter Income (2024) | % Difference Between Income Required and Estimated Median Renter Income |
| No. 1 | Austin, Texas | $1,394 | $55,760 | $69,781 | 25.14% |
| No. 2 | Houston | $1,239 | $49,560 | $58,287 | 17.61% |
| No. 3 | Dallas | $1,460 | $58,400 | $64,417 | 10.30% |
| No. 4 | Salt Lake City | $1,476 | $59,040 | $64,271 | 8.86% |
| No. 5 | Raleigh, NC | $1,418 | $56,720 | $61,463 | 8.36% |
| No. 6 | Denver | $1,695 | $67,800 | $72,803 | 7.38% |
| No. 7 | Phoenix | $1,476 | $59,040 | $63,157 | 6.97% |
| No. 8 | Washington | $2,039 | $81,560 | $86,644 | 6.23% |
| No. 9 | Baltimore | $1,600 | $64,000 | $66,745 | 4.29% |
| No. 10 | Nashville, TN | $1,495 | $59,800 | $61,236 | 2.40% |
Renters Earn Nearly $9K Less Than Needed to Afford the Median Apartment
To rent an apartment in the U.S. metros listed below, one might need an arm and a leg as an additional deposit. Or maybe an organ to spare? The metros listed are among the top 10 most expensive nationwide. While they boast their tourist attractions, sports teams, sunny weather, and many other pros, rental costs alone may push some renters away from specific markets.
Note: Los Angeles is listed in this report as one of the least affordable metros to rent, using data from December, prior to the devastating January wildfires. Redfin is tracking reports that rents have started rising across Los Angeles as displaced residents look for new homes.
Top 10 Least Affordable Metros For Renters:
| Rank | U.S. Metro | Median Asking Rent (Dec 2024) | Income Required To Afford Median Asking Rent (Dec 2024) | Estimated Median Renter Income (2024) | % Difference Between Income Required and Estimated Median Renter Income |
| No. 1 | Providence, RI | $2,145 | $85,800 | $50,408 | -41.25% |
| No. 2 | Miami | $2,373 | $94,920 | $57,157 | -39.78% |
| No. 3 | New York | $2,805 | $112,200 | $71,376 | -36.39% |
| No. 4 | Los Angeles | $2,780 | $111,200 | $73,419 | -33.98% |
| No. 5 | Boston | $2,660 | $106,400 | $73,116 | -31.28% |
| No. 6 | San Diego | $2,831 | $113,240 | $78,357 | -30.80% |
| No. 7 | Riverside, CA | $2,266 | $90,640 | $63,162 | -30.32% |
| No. 8 | Tampa, FL | $1,735 | $69,400 | $54,654 | -21.25% |
| No. 9 | Philadelphia | $1,865 | $74,600 | $58,970 | -20.95% |
| No. 10 | Buffalo, NY | $1,310 | $52,400 | $41,905 | -20.03% |
Renters in Providence made a median wage of $50,408, which was 41.3% (or $35,392 in dollars) less than what they needed to buy an average apartment. This represents the opposite end of the affordability range. Among the major metros examined, that was the largest disparity.
Then came a number of historically high-priced metro areas where demand is always high. The five least cheap metro areas to rent are Miami (39.8% less), New York (36.7% less), Los Angeles (34% less), and Boston (31.3% less). Redfin’s report contains data from December, before the catastrophic wildfires in Los Angeles. As displaced homeowners search for new residences, Redfin is monitoring reports that rents have begun to increase throughout the famed California metro.
Note from the author: I wish my sincerest consolations to everyone affected by the California wildfires and hope for timely and sufficient relief.
Multifamily Construction Booming in ATX, Sun Belt Metros
Whether it’s mentioned as ATX, “The Friendly City,” or “The City of Legends,” the popular and buzzing Austin, Texas, metro saw the biggest improvement in rental affordability in 2024, as the average apartment’s monthly rent dropped to $55,760 in December, a 16.3% decrease ($10,840) from $66,600 the previous year.
Over the past few years, multifamily housing building has reached some of its highest levels in Austin and many other Sun Belt metro areas. As supply rises and demand levels off, rents are now beginning to decline. However, some popular Florida metros are making their way atop the list of cities where rental affordability has moderated—and may continue to do so throughout the year.
Top 5 Metros Where Rental Affordability Improved The Most In 2024:
| Rank | Metro | Income Required To Afford Median Asking Rent (Dec 2024) | Income Required To Afford Median Asking Rent (Dec 2023) | 2023→2024 Difference In Income Required |
| No. 1 | Austin, Texas | $55,760 | $66,600 | -16.28% |
| No. 2 | Tampa, FL | $69,400 | $77,520 | -10.47% |
| No. 3 | Jacksonville, FL | $58,000 | $62,200 | -6.75% |
| No. 4 | Nashville, TN | $59,800 | $63,800 | -6.27% |
| No. 5 | New York | $112,200 | $117,560 | -4.56% |
Tampa, FL (-10.5% to $69,400), Jacksonville, FL (-6.8% to $58,000), Nashville, TN (-6.3% to $59,800), and New York (-4.6% to $112,200) were the next largest metro areas with the most year-over-year affordability increases. However, due in part to a lack of new building in recent years, renting is currently more expensive than it was a year ago in some major East Coast and Midwest urban areas.
Top 5 Metros Where Rental Affordability Worsened The Most (2024):
| Rank | Metro | Income Required To Afford Median Asking Rent(Dec 2024) | Income Required To Afford Median Asking Rent(Dec 2023) | 2023→2024 Difference In Income Required |
| No. 1 | Providence, RI | $85,800 | $76,200 | +12.60% |
| No. 2 | Virginia Beach, VA | $63,080 | $56,920 | +10.82% |
| No. 3 | Louisville, KY | $49,200 | $44,720 | +10.02% |
| No. 4 | Baltimore | $64,000 | $58,200 | +9.97% |
| No. 5 | Buffalo, NY | $52,400 | $48,100 | +8.94% |
The average apartment near the water in Providence, RI, required renters to make $85,800 in December, which was a 12.6% increase ($9,600) over the $76,200 required in December 2023. Out of the 44 major metros Redfin examined, that was the most year-over-year increase.
Then followed Buffalo, NY (+8.9% to $52,400), Baltimore (+10% to $64,000), Louisville, KY (+10% to $49,200), and Virginia Beach, VA (+10.8% to $63,080).
In Q3, asking rentals for newly built apartments increased to a median of $1,802 after increasing 1.5% in December 2024, the largest year-over-year increase in 18 months. The rent increase followed two quarters in a row in which new apartment rents dropped by over 7%.
So, what does this mean for renters nationwide in 2025? More Americans may be able to live comfortably with the ability to pay their monthly housing expenses if rental rates continue to moderate in certain metros and regions. However, the year is new, and the housing forecast is broad.
To read the full report, including more data, charts, and methodology, click here.
