Buzz
Rent prices differ greatly across the U.S. In certain cities, rental costs are soaring, while in others, they remain affordable and steady. Taking these shifts into account, Forbes compiled a list of the best and worst cities to rent in the United States.
Forbes examined the 50 largest cities and their surrounding metropolitan areas. In some regions, rental prices vary significantly between downtown areas and the suburbs. In such cases, Forbes closely analyzed 'Metropolitan Divisions' in comparison to the broader 'Metropolitan Statistical Area.' The analysis was based on data from the real estate firm Marcus & Millichap, ranking cities based on four key factors:
1) average rent in the last quarter of 2014;
2) vacancy rates, as more available units typically mean better options and, often, lower prices;
3) average percentage of household income spent on rent; and
4) annual rent changes.
Based on their research, here are the five worst cities for renters, along with the average monthly rent, percentage change, and median household income.
The Worst Rental Markets
San Francisco-San Mateo-Redwood City, CA Average monthly rent: $2,802 Year-over-year % change: 12.8% Median household income: $85,087
Oakland-Fremont-Hayward, CA Average monthly rent: $1,815 Year-over-year % change: 10.5% Median household income: $76,493
San Jose-Sunnyvale-Santa Clara, CA Average monthly rent: $2,291 Year-over-year % change: 11.3% Median household income: $93,902
New York County (NY) Average monthly rent: $3,290 Year-over-year % change: 3.4% Median household income: $74,915
Los Angeles-Long Beach-Glendale, CA Average monthly rent: $1,785 Year-over-year % change: 6.4% Median household income: $55,135
The top three cities aren't too surprising, given that San Francisco and San Jose were recently ranked as the fastest-growing rental markets.
As for the best cities for renters, here are the top five locations:
The Best Rental Markets
Indianapolis-Carmel, IN Average monthly rent: $756 Year-over-year % change: 3.3% Median household income: $55,282
Kansas City, MO-KS Average monthly rent: $793 Year-over-year % change: 2.7% Median household income: $56,743
Las Vegas-Paradise, NV Average monthly rent: $767 Year-over-year % change: 3.6% Median household income: $52,269
St. Louis, MO-IL Average monthly rent: $809 Year-over-year % change: 4.3% Median household income: $54,651
Columbus, OH Average monthly rent: $788 Year-over-year % change: 3.3% Median household income: $55,181
For a complete list, including further details about average rents in each city, follow the link below.
Image by jason jenkins.
