SEATTLE, WA — A new report from Redfin reveals that U.S. rental affordability has improved, with the income needed to afford the median monthly rent dropping to $63,680, the lowest since March 2022. The median rent for apartments in December 2024 was $1,592, a decline from the $1,700 peak in August 2022.
While the required income has decreased, renters’ earnings have reached new highs. The estimated median renter income in 2024 was $54,752—up 5.3% from 2023 and 35.2% higher than pre-pandemic levels in 2019. Despite these gains, renters still earn 14% less than the income required to comfortably afford median rent.
“Rental affordability will continue improving this year, as wages grow and rents remain flat, thanks to the recent boom in apartment construction,” noted Sheharyar Bokhari, Redfin Senior Economist. “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.”
Among major U.S. cities, Austin emerged as the most affordable metro for renters. The median income in Austin exceeds the amount needed to afford average rent by 25.1%. Houston, Dallas, Salt Lake City, and Raleigh also ranked high on affordability.
Conversely, Providence was the least affordable metro, with renters earning 41.3% less than needed to afford typical rent. Miami, New York, Los Angeles, and Boston followed as top affordability challenges for renters, driven by consistently high demand and limited supply.
Austin also saw the greatest improvement in rental affordability in 2024, with the required income for median rent falling 16.3% year-over-year. Supply growth, particularly in multifamily housing, played a critical role in this trend. Meanwhile, cities like Providence, Virginia Beach, and Louisville experienced a rise in rental income requirements due to stagnant construction and growing demand.
Redfin’s report underscores that while affordability conditions have improved nationally, geographic disparities persist in offering financial relief to renters.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.