Rental prices in the United States have become increasingly expensive, with the median monthly rent in the country soaring past $1,600.
Renters in the US now need to earn at least $66,120 a year to afford the rent of a median-priced apartment of $1,653. That is 17% higher than the average income of $54,712. That means only 39% of rents can afford the monthly rent, assuming they only spend 30% or less of their income on housing costs. That is according to a new report from Redfin, which analyzed the median US apartment asking rents as of the three months ending May 31, 2024.
Despite rising rental prices, renting is still a better option for many Americans as just 6% of renters can afford the median monthly payment for a home, a Harvard University study found.
That being said, renters in some cities were found to have been paying more than homeowners, per a SmartAsset analysis.
10 US Cities Where Renters Pay More Than Homeowners
Surprise, Arizona
Median Monthly Gross Rent: $2,064
Median Monthly Mortgage: $1,696
How Much Renters Pay More Than Homeowners: $368
San Tan Valley, Arizona
Median Monthly Gross Rent: $1,843
Median Monthly Mortgage: $1,566
How Much Renters Pay More Than Homeowners: $277
Lehigh Acres, Florida
Median Monthly Gross Rent: $1,598
Median Monthly Mortgage: $1,431
How Much Renters Pay More Than Homeowners: $167
Brandon, Florida
Median Monthly Gross Rent: $1,718
Median Monthly Mortgage: $1,563
How Much Renters Pay More Than Homeowners: $155
Gilbert, Arizona
Median Monthly Gross Rent: $2,064
Median Monthly Mortgage: $1,918
How Much Renters Pay More Than Homeowners: $146
Cape Coral, Florida
Median Monthly Gross Rent: $1,801
Median Monthly Mortgage: $1,694
How Much Renters Pay More Than Homeowners: $107
Peoria, Arizona
Median Monthly Gross Rent: $1,860
Median Monthly Mortgage: $1,785
How Much Renters Pay More Than Homeowners: $75
Meridian, Idaho
Median Monthly Gross Rent: $1,789
Median Monthly Mortgage: $1,739
How Much Renters Pay More Than Homeowners: $50
Spring Hill, Florida
Median Monthly Gross Rent: $1,273
Median Monthly Mortgage: $1,253
How Much Renters Pay More Than Homeowners: $20
Palm Bay, Florida
Median Monthly Gross Rent: $1,438
Median Monthly Mortgage: $1,420
How Much Renters Pay More Than Homeowners: $18
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