Rent affordability improved the most in 2024 in Austin, Texas, where the required income to afford the typical apartment was $55,760.Rent affordability improved the most in 2024 in Austin, Texas, where the required income to afford the typical apartment was $55,760.
In January, Redfin released a report on the most affordable U.S. metro areas for renters.
To rank the metros, Redfin analyzed the median asking rent for apartments across the United States for a three month period — October to December of 2024. Then they estimated the median incomes of renter households using U.S. Census Bureau data from 2023.
Redfin considers an apartment “affordable” if a renter spends no more than 30% of their income on rent.
“Rent affordability is a function of two things, how much rent costs and also how much people earn,” Daryl Fairweather, Chief Economist and Redfin, tells CNBC Make It.
Redfin’s top 10 is comprised of areas with a strong economy and a growing housing market, she adds.
“If you have a strong economy like New York or Los Angeles, that can actually become a problem for affordability because high earners tend to compete against lower earners for the same apartments, and that ends up pricing out middle earners,” Fairweather says.
“In places that are building enough housing, middle earners aren’t competed out of the market, and they’re able to comfortably afford their rents on the salaries that they earn.”
Texas is home to the most affordable metros for renters, with three cities in the top 10.
“Texas overall is a state that makes it easy to build,” Fairweather says. “They continue to build housing even in excess of what locals need, which allows them to attract people from other states like California where they have not kept up supply and demand.”
Austin is the No. 1 most affordable metro area for renters
Texas’ capital city came in at the top of the list of the most affordable U.S. metro for renters.
“Austin has good job opportunities which provide good incomes even to middle earners and they have done a lot building,” Fairweather says. “They have prioritized zoning for dense housing, which means there are apartments for people who want to rent.”
The report found that renters in Austin earned a median salary of $69,781 in 2024. The income required to afford the median rent is $55,760, and the median asking rent is $1,394.
The difference between the income required and the estimated median renter income in Austin is 25.14% — the biggest gap among the major metros.
“Austin rents are higher than, say, in the Midwest, but people in Austin earn enough money to be able to comfortably afford rent there,” Fairweather says. “It’s affordable compared to other part of the country when you factor in incomes.”
Austin, Texas
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Austin was recently named one of the metros with the largest share of high-paying jobs, in a November 2024 report from ADP. The Austin-Round Rock, Texas metro area has 1.16% of the share of jobs paying over $500,000 a year.
The tech industry continues to expand its presence in Austin, with companies like Tesla and Dell headquartered in the area. Austin is also home to the University of Texas Austin, which is one of the largest universities in the U.S.
Top 10 most affordable U.S. metro area for renters
- Austin, Texas
- Houston, Texas
- Dallas, Texas
- Salt Lake City, Utah
- Raleigh, NC
- Denver, Colo.
- Phoenix, Ariz.
- Washington D.C.
- Baltimore, Maryland
- Nashville, Tenn.
Houston is the No. 2 most affordable metro in the U.S. The major Texas city “has a vibrant economy along with a lot of housing,” Fairweather says.
“They are pretty liberal in terms of their zoning, meaning that there aren’t many restrictions compared to other places in terms of what is allowed to be built. It’s a lot easier to get approved apartment buildings. That’s why they are able to construct as much as they need to meet the demand from renters.”
According to the Redfin report, the median asking rent in Houston was $1,239 in December 2024. The income required to afford the median asking rent is $49,560, and the estimated median renter income is $58,287.
Houston, Texas
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The difference between the income required and the estimated median renter income is 17.61%.
Houston is located in Southeast Texas and is one of the most populous cities in America, behind other major metros like New York, Los Angeles and Chicago. The city has a population of over 2 million.
The area is home to many industries, including manufacturing and healthcare.
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