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Top 5 Cities Where Rent Has Become More Affordable

Money Talks News Logo By Stephanie Horan of Money Talks News | Slide 1 of 8: This story originally appeared on SmartAsset.com. Affordability issues generally affect renters more than homeowners. More than 40% of renters pay more than one-third of their household income on rent compared with just 24% spent by homeowners on their mortgage, according to a February 2020 survey by Freddie Mac. But depending on where they live, renters can lower the burden of their housing costs. That’s why SmartAsset crunched the numbers to identify cities in the U.S. where rent has decreased the most recently relative to income. To complete our analyses for both sections of this report, we looked at data for 50 of the largest U.S. cities. Specifically, we compared:  2016 rent as a percentage of household income. This is the average annual rent divided by median household income. Data comes from rentjungle.com and the U.S. Census Bureau’s one-year American Community Survey. 2019 rent as a percentage of household income. This is the average annual rent divided by median household income. Data comes from rentjungle.com and the U.S. Census Bureau’s one-year American Community Survey.   To create the final rankings of cities where rent has become more affordable, we subtracted the 2016 rent as a percentage of household income from the 2019 rent as a percentage of household income. The cities with the largest negative difference — i.e. where relative cost decreased the most — ranked as our top cities where rent is becoming more affordable. When looking at the rent market in 2020, we compared Rent Jungle data on the average market rent in January 2020 to the average in September 2020. We found the percentage change over that time period for all 50 of the cities we looked at. It's not the usual blah, blah, blah. Click here to sign up for our free newsletter.

Top 5 Cities Where Rent Has Become More Affordable

This story originally appeared on SmartAsset.com.

Affordability issues generally affect renters more than homeowners. More than 40% of renters pay more than one-third of their household income on rent compared with just 24% spent by homeowners on their mortgage, according to a February 2020 survey by Freddie Mac. But depending on where they live, renters can lower the burden of their housing costs. That’s why SmartAsset crunched the numbers to identify cities in the U.S. where rent has decreased the most recently relative to income.

To complete our analyses for both sections of this report, we looked at data for 50 of the largest U.S. cities. Specifically, we compared:

  • 2016 rent as a percentage of household income. This is the average annual rent divided by median household income. Data comes from rentjungle.com and the U.S. Census Bureau’s one-year American Community Survey.
  • 2019 rent as a percentage of household income. This is the average annual rent divided by median household income. Data comes from rentjungle.com and the U.S. Census Bureau’s one-year American Community Survey.

To create the final rankings of cities where rent has become more affordable, we subtracted the 2016 rent as a percentage of household income from the 2019 rent as a percentage of household income. The cities with the largest negative difference — i.e. where relative cost decreased the most — ranked as our top cities where rent is becoming more affordable.

When looking at the rent market in 2020, we compared Rent Jungle data on the average market rent in January 2020 to the average in September 2020. We found the percentage change over that time period for all 50 of the cities we looked at.

It's not the usual blah, blah, blah. Click here to sign up for our free newsletter.

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