\n(NASDAQ: RDFN) \u2014 Renters need to earn $63,680 to afford the median asking rent for a U.S. apartment ($1,592), the lowest amount needed since March 2022, according to a new report<\/a> from Redfin (redfin.com), the technology-powered real estate brokerage. That\u2019s down 0.4% from a year ago and a drop of 6.4% from August 2022 when the median asking rent hit an all-time high of $1,700. Back then, a renter would have had to earn $68,000 to afford the typical apartment\u2014nearly $5,000 more than today.<\/p>\n
Rental affordability improves as renters earn more than ever<\/b><\/p>\n
\nOn the other side of the affordability equation, renters are earning more than ever. The estimated median income for a renter in 2024 was $54,752, up 5.3% from 2023 ($52,019) and 35.2% from before the pandemic in 2019 ($40,505).<\/p>\n
\nThat\u2019s still 14% less\u2014or $8,928 a year in dollar terms\u2014than the $63,680 income needed to afford the median monthly rent for an apartment.<\/p>\n
\nBut the gap between how much renters earn and the income they need to keep rent affordable is shrinking, with last month\u2019s difference being the smallest in the five years Redfin has tracked the two metrics.<\/p>\n
\n\u201cRental affordability will continue improving this year, as wages grow and rents remain flat, thanks to the recent boom<\/a> in apartment construction,\u201d said Redfin Senior Economist Sheharyar Bokhari. \u201cThe affordability gap between renting and buying is likely to widen further in 2025<\/a>, as home prices rise and mortgage rates remain high. That means potential homebuyers\u2014especially from younger generations\u2014may decide to continue renting for longer, as it\u2019s the only affordable option.\u201d<\/p>\n Austin is the most affordable metro for renters; Providence is the least affordable<\/b><\/p>\n \nEmphasizing improving rental affordability overall, renters in 15 of the 44 major metros analyzed earned more than is needed to afford the median rent in December\u2014compared to just seven metros a year earlier.<\/p>\n \nRenters in Austin earned a median salary of $69,781. That\u2019s 25.1% (or $14,021 in dollar terms) more <\/i>than they need to afford the typical apartment\u2014the biggest gap among the major metros. Next came Houston (17.6% more), followed by Dallas (10.3% more), Salt Lake City (8.9% more) and Raleigh, NC (8.4% more).<\/p>\n 10 Most Affordable Metros For Renters<\/b><\/p>\n
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