US Cities That Offer Affordable House Rents and Budget-Friendly Living
In 2023, around 34% of the 131 million households in the United States were living in rented homes. This statistic sheds light on the significant portion of the population that opts for rental accommodation rather than homeownership. While owning a home is often considered a long-term investment, renting provides flexibility and sometimes a more feasible option for many individuals and families.
Factors influencing rental affordability
Determining the most affordable cities to rent in the U.S. involves analyzing various factors beyond just the cost of rent. One crucial aspect is the average salary in each city. Surprisingly, some cities in states known for their high cost of living can still offer relatively affordable rental options. This is where the concept of housing affordability comes into play—a balance between rental costs and the income levels of residents.
Methodology for assessing affordability
CashNetUSA conducted a study to identify the most affordable cities for renters in the U.S. Their approach involved comparing rental price data from Zillow.com, as of August 2023, with city salary data. By calculating the percentage of available rental properties that cost 30% or less of the local average income, they were able to gauge affordability accurately. This metric aligns with the commonly accepted guideline that housing costs should not exceed 30% of one's income to maintain financial stability.
Wealth discrepancies and affordability
It's essential to consider the demographics of each city when assessing rental affordability. Wealthier residents with higher incomes may skew the apparent affordability of available rentals. Their ability to afford higher rents could make the rental market seem more accessible than it actually is for the broader population, particularly those with lower incomes.
Most affordable cities for renters
The study revealed several cities in the U.S. that stand out for their affordability in the rental market. Toledo and Akron, ranking second and third respectively, showcase similar levels of affordability, per Visual Capitalist. An impressive 95% of available rentals in these cities fall within 30% of the local average wage, making them attractive options for renters seeking affordability.
Ohio emerges as a notable contender in the realm of affordable renting, with multiple cities making it into the top 20 list. Waterbury, ranked 17th, further solidifies the state's position as a favorable destination for renters seeking budget-friendly housing options.
Resurgence in post-recession cities
Detroit and Rockford are among the top five most affordable cities for renters in the U.S., despite facing economic challenges in the past. Following the Great Recession, both cities experienced declines in their local economies, leading to increased crime rates and population loss. However, post-pandemic, these cities are undergoing a remarkable resurgence.
With the influx of industries, job opportunities, and a growing population, Detroit and Rockford are witnessing revitalization in their housing markets. This turnaround underscores the resilience of these communities and their ability to bounce back from adversity.
